State RegulationsPA specificDifficulty 1/5
Under an annuity contract, who receives the annuity payments during the annuity period?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The annuitant is the person whose life (or whose life expectancy) measures the payout and who receives the annuity payments during the annuity period. This role distinction matters under Pennsylvania's annuity framework: the Pennsylvania Insurance Department regulates how the contract designates the annuitant, and the beneficiary's role arises only after the annuitant's death or under a refund option. The other parties named have no claim to the payout stream.
Why the other options are wrong
- B) The insurer's staff administer the contract internally; they are not recipients of the annuity benefits.
- C) The producer earns commissions on the sale but never receives the contract's benefit payments.
- D) The guaranty association exists to protect policyholders if an insurer fails; it does not receive annuity payments as a beneficiary of the contract.
Memory hook
Annuitant gets the checks — that is the whole job of the annuitant.