11. Which of the following refers to the difference between what an insurer earns on the funds in its general account and the interest rate it declares for crediting to its annuity contracts?

a. the insurer's reserve

b. the insurer's earnings

c. the insurer's spread

d. the insurer's liability

14. Lila invested $10,000 in one of Long Life Insurance Company's annuity contracts. When issued, the contract was paying a 4 percent rate of return. Two years later, Long Life increased this rate to 6 percent. Underlying Lila's contract is a 2 percent rate of return, guaranteed for the life of the contract. What kind of annuity does Lila own?

a. a fixed immediate annuity

b. a variable immediate annuity

c. a fixed deferred annuity

d. a variable deferred annuity