Question 1036 of 287 · Texas Life, Accident and Health Agent Exam
Which feature of an indexed annuity or indexed life policy limits the amount of index gain that can be credited in a period?
Exactly one answer is correct.
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Correct answer to question 1036
- B: The cap rate
Explanation
A cap sets the maximum rate credited, while the floor sets the minimum, often zero percent. Participation rate is the share of the index gain that is credited.
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