A policyowner cancels his life policy but instructs the insurance company to transfer the cash value of his policy to an annuity. This nontaxable transaction is called

A policyowner cancels his life policy but instructs the insurance company to transfer the cash value of his policy to an annuity. This nontaxable transaction is called


A) 1035 exchange.

B) Qualified distribution.

C) Premature distribution.

D) Rollover.


Answer: 1035 exchange

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