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(1) If Julie is alive on the retirement date, Phyllis will
begin receiving annuity payments. If Phyllis subsequently dies,
any remaining payments will be paid to the contingent
beneficiaries.
(2) If Phyllis predeceases Julie before the retirement
date, Julie will become the successor owner, and she must
terminate the contract within 1 year after Phyllis’s death by
either: (1) Surrendering the contract as described in the
contract’s nonforfeiture provisions; or (2) electing an annuity
as described in the contract’s settlement options provisions.
The nonforfeiture provisions provide that Julie could take free
annual withdrawals or surrender all or part of the contract. The
settlement options provide that Julie could take partial
surrenders of the cash value, fixed amount installments, fixed
period installments, life annuity with a period certain,
installment refund annuity, or a joint and survivor annuity.
(3) If Julie predeceases Phyllis before the retirement
date, Phyllis will receive the death benefit of the total cash
value of the contract less any unpaid loans.
A few years after the annuity was issued, Phyllis told Julie
that she placed Julie’s name on the annuity as the annuitant and
successor owner because Mark was busy, Paul’s lifestyle was
different, and Heidi lived in Florida and that Phyllis knew that
“if anything ever happened to me [Phyllis], that you [Julie]
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Last modified: May 25, 2011