State RegulationsAZ specificDifficulty 1/5
When an Arizona annuity is returned within the free-look period under A.R.S. 20-1233, the contract holder is entitled to:
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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, an Arizona annuity returned within the applicable free-look window — 10 days after delivery generally, or 30 days for contract holders age 65 or older at application — earns a full refund. The statute does not permit the insurer to deduct administrative charges, surrender penalties, or pro-rate the amount, so the contract holder is put back exactly where the buyer started financially.
Why the other options are wrong
- A) Administrative cost deductions are not authorized; the statute promises a full refund on a timely return.
- C) Account value is a separate-account measure relevant to variable refund formulas, not the full refund due on a fixed annuity returned in the window.
- D) Pro-rating by days in force contradicts A.R.S. 20-1233, which requires a full refund with no time-based reduction.
Memory hook
Return it in the window, get it all back — no fees, no pro-rating.