Group Life & AnnuitiesQuestion 120 of 315
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 annuitant
b.The insurance company keeps the funds
c.The state of California as escheated property
d.The named beneficiary
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 §10127.10Practice all 315 questions free — no signup required.
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