State RegulationsAZ specificDifficulty 2/5
For a variable annuity returned during the free-look period, A.R.S. 20-1233 measures the separate-account value as of the date:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under A.R.S. 20-1233, the variable annuity refund equals premiums paid minus amounts allocated to separate accounts, plus the separate-account value when the returned contract is received. The valuation date is receipt of the returned contract, which fixes the account value at the moment the insurer regains control of the annuity rather than at some earlier procedural milestone.
Why the other options are wrong
- A) The application date starts nothing in the refund formula; valuation occurs when the returned contract reaches the insurer.
- C) The start of the free-look period is a delivery-based milestone but not the statutory valuation date for the separate account.
- D) Policyholder report mailing is a variable life grace-period concept, not the annuity refund valuation date.
Memory hook
Value it when it lands — the refund keys off receipt of the returned contract.