Which of the following statements about pension funding agencies and f

Which of the following statements about pension funding agencies and funding instruments is true?

A) Under a trust-fund plan, individual annuities are purchased each year for employees participating in the plan.
B) A separate investment account is a group pension account with a life insurance company.
C) If the funding instrument is a commercial bank, the plan is called an insured plan.
D) Under a guaranteed investment contract, the insurer guarantees the principal of a lump sum deposit but does not guarantee the interest rate.

ANSWER

Answer: B