State RegulationsMA specificDifficulty 1/5
Which Massachusetts statute supplies nonforfeiture benefits for deferred annuity contracts?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
M.G.L. c. 175, § 144A½ is the Massachusetts statute providing nonforfeiture benefits for deferred annuities. If the owner stops paying premiums on a deferred annuity, the statute ensures the contract does not simply evaporate: value already accumulated remains available in the form the law prescribes. The other cited sections govern different subjects — variable products, the limited free-look provision for certain small-face life policies, and life settlement penalties respectively — which is why only § 144A½ answers the nonforfeiture question.
Why the other options are wrong
- A) M.G.L. c. 175, § 132F begins the provisions governing variable contracts, not deferred annuity nonforfeiture.
- B) M.G.L. c. 175, § 187H is the right-to-examine provision for individual life policies with face amounts under a specified threshold, unrelated to annuity nonforfeiture.
- D) M.G.L. c. 175, § 223D sets civil penalties for violations of the life settlement provisions, not annuity nonforfeiture benefits.
Memory hook
Deferred annuities never forfeit everything — 144A½ locks in a floor.