Massachusetts Life Producer Practice Exam

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Study for the Massachusetts Life Producer Exam. Use flashcards and multiple-choice questions with detailed hints and explanations. Prepare effectively for your exam with confidence!

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Who must sign the authorization for surrendering a deferred annuity?

Beneficiary
Owner
Insurance agent
Financial advisor

The correct answer is: Owner

The owner of a deferred annuity is the individual who holds the contract and has the rights associated with it, including the authority to make decisions regarding withdrawals or surrenders. Therefore, only the owner must sign the authorization for surrendering the annuity. This requirement is in place to ensure that the individual with the legal rights to the annuity makes informed decisions about accessing their funds. In this context, the role of the beneficiary is different; beneficiaries only have rights to the annuity benefits upon the owner's death, and they cannot authorize withdrawals or surrenders while the owner is living. An insurance agent and a financial advisor can provide guidance and facilitate the surrender process, but they do not have the legal authority to sign documents or make decisions on behalf of the owner.