Question

Denise has a life annuity with ABC Insurance Co. and receives $2500 a month in income. ABC Insurance Co becomes insolvent and is unable to meet their financial obligations. How much will Denise receive in monthly income based on the protection provided by Assuris?

a) $2,000
b) $2,125
c) $2,500
d) $1,700

Answer 1

Denise will receive $2,500 per month in income based on the protection provided by Assuris.

Step-by-step explanation:

The protection provided by Assuris ensures that Denise will continue to receive a portion of her monthly income even if ABC Insurance Co becomes insolvent. Assuris is a not-for-profit organization that protects policyholders in the event of insolvency. The protection provided by Assuris guarantees that policyholders will receive up to $2,500 per month in income from their life annuities.