Which of the following must be clearly illustrated in ALL sales material for market value adjusted annuities?

The requirement for all sales materials related to market value adjusted annuities is that the market value adjustment can be either upward or downward. This is crucial for ensuring that potential buyers understand the inherent risks and benefits associated with these financial products.

Market value adjusted annuities have features that allow adjustments based on the interest rate environment at the time of withdrawal. By clearly illustrating that the adjustment can go both ways, consumers are made aware that their returns could be enhanced or reduced depending on market conditions. This transparency is essential in guiding them to make informed decisions aligned with their financial goals and risk tolerance.

The other choices do not accurately reflect the nature of market value adjusted annuities. Guaranteeing that the adjustment is always favorable would mislead consumers about the non-guaranteed nature of the adjustments. Similarly, stating that the adjustment only occurs annually and that it does not apply to withdrawals would paint an incomplete picture of how these annuities function and could potentially misguide customers into unrealistic expectations.