Group Life & AnnuitiesQuestion 120 of 716

If the owner of a deferred annuity dies during the accumulation phase, before annuitization begins, who normally receives the contract's remaining value?

a.The state of California as escheated property
b.The insurance company keeps the funds
c.The named beneficiary
d.The annuitant

Explanation

During accumulation the named beneficiary receives the contract's remaining value if the owner dies. The annuitant is the measuring life for payouts, not the recipient of a death benefit, and insurers do not keep the value when an owner dies before annuitization.

Law Reference: Cal. Ins. Code §10127.10

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Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)
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