As a result of an accident due to faulty equipment at a shopping mall, Leslie is permanently disabled and will require home care for life. Her lawyer and the mall's insurer have reached an agreement which will provide Leslie with a stream of annuity payments to cover her medical and home care costs and replace lost income.
As a result of an accident due to faulty equipment at a shopping mall, Leslie is permanently disabled and will require home care for life. Her lawyer and the mall's insurer have reached an agreement which will provide Leslie with a stream of annuity payments to cover her medical and home care costs and replace lost income.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:22. As a result of an accident due to faulty equipment at a shopping mall, Leslie is permanently disabled and will require home care for life. Her lawyer and
the mall's insurer have reached an agreement which will provide Leslie with a stream of annuity payments to cover her medical and home care costs and
replace lost income.
What kind of annuity contract will the insurer provide for Leslie?
Structured settlement annuity.
O Deferred annuity
O Individual variable annuity.
Non variable annuity
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