State RegulationsTX specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
A Texas purchaser receives a newly issued fixed annuity contract. Under TIC 1116.002, for how long after delivery may the purchaser rescind the contract, and what is the refund?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under TIC 1116.002(a), a fixed annuity contract must provide that, for a period of at least 20 days after the date the contract is delivered, the purchaser may rescind the contract and receive an unconditional refund of premiums paid for the contract, including any contract fees or charges. The cash-surrender-value measure of refund belongs to variable or modified guaranteed annuity contracts under Subsection (b), not to fixed annuities. Practically, the rescission right is the reason the delivery date of an annuity should always be documented.
Why the other options are wrong
- B) Ten days is the variable life free-look figure under 28 TAC 4.1504(3)(A)(v); a fixed annuity carries at least a 20-day rescission right.
- C) The rescission period for a fixed annuity is at least 20 days, and the refund is unconditional and includes fees, not limited to cash surrender value.
- D) The cash surrender value measure applies to variable or modified guaranteed annuity contracts under TIC 1116.002(b), not to fixed annuities under Subsection (a).
Memory hook
Fixed annuity: twenty days from delivery, all premiums back.