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 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 §10127.10Practice all 315 questions free — no signup required.
Related questions on this topic
- Which statement about a typical annuity surrender charge schedule is correct?
- During the accumulation phase of a non-qualified deferred annuity, how is the interest credited inside the contract treated for federal income tax purposes?
- Which of the following is NOT one of the eligible group categories for group life insurance in California?
- An employee with group life coverage dies 10 days after leaving the job, having not yet applied for conversion. What is the insurer's obligation?
- Which statement BEST describes the difference between a 401(k) plan and a 403(b) plan?
- Under ERISA, an employee's own salary-deferral contributions to a 401(k) plan must vest:
Last reviewed: · editorial process
Sen Lin, PrepPass Founder · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)