Utah Regulators Issue Surrender Charge Bulletin
May 6, 2011 by Allison Bell
Published 5/5/2011
The Utah Insurance Department has put out a bulletin giving its views on individual annuity surrender charges.Utah has laws, for example, that forbid use of annuity bonuses that are available only for annuitization, officials say in Bulletin 2011-2.
Utah requires that, on or past the maturity date, the cash surrender value be equal to the amount used to determine annuity benefits. That rule prohibits the sale of two-tier annuities in Utah, officials say.
Fixed subaccounts within variable annuities are subject to the same laws that apply to fixed annuity contracts.
– Allison Bell
Originally Posted at National Underwriter on May 5, 2011 by Allison Bell.
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