'When a purchaser invests in a "variable" annuity, the purchaser's money is invested in a designated way and payments to the purchaser vary with investment performance. In a classic "fixed" annuity, in contrast, payments do not vary.'
Variable annuity
Definition
An annuity — periodic payments to a recipient — that varies in amount based on the performance of the underlying investments.
Illustrative caselaw
See, e.g. NationsBank of North Carolina, N.A. v. Variable Annuity Life Ins. Co., 513 U.S. 251 (1995).
See also
Definition from Nolo’s Plain-English Law Dictionary
An annuity that makes payments that vary in amount, depending on the performance of the investments made by the annuity company. Compare: fixed annuity
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:26 pm
