An annuity — periodic payments to a recipient — that varies in amount based on the performance of the underlying investments.
See, e.g. NationsBank of North Carolina, N.A. v. Variable Annuity Life Ins. Co., 513 U.S. 251 (1995).
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:26 pm
'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.'