11. John purchased a variable annuity with a premium deposit of $30,000. He allocated these funds equally among three of the contract's investment options: a domestic stock account fund, a long-term bond account fund, and the fixed account fund. How much of John's original investment will the insurer guarantee? (Search Chapter 2)

• a. $10,000
• b. $20,000
• c. $30,000
• d. $0

12. With respect to the current interest rates that are declared and credited to traditional fixed annuities, which of the following statements is true? (Search Chapter 2)

• a. These rates are mandated by state insurance commissions.
• b. These rates are a function of the performance of independent market indexes.
• c. These rates are left to the discretion of the issuing insurance company.
• d. These rates are selected by the annuity owners, within ranges specified by state law.