Annuities
An annuity is owned by a parent and measured on a child's life. Who may surrender the contract?
Answer and explanation
Answer: B. Surrender is a right of ownership, so the owner exercises it. The annuitant supplies the measuring life without holding the contractual rights, and the insurer's consent is not what the right depends on.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, owner distinct from annuitant
More annuities questions
- Which payout option produces the largest periodic income for a given sum, and why?
- Who bears the investment risk in a variable annuity?
- Why do deferred annuities commonly carry surrender charges in the early years?
- Why might an annuity be used to accumulate funds for education?
- A buyer wants to fund an annuity gradually over working life and take income at retirement. Which design fits?
- A contract holder elects to begin receiving income. Which phase has begun?
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