Question #$8$ of $50$

When arranging for and executing an exchange under Section $1035$ of a variable annuity for a fixed annuity, the contract holder needs to be aware that

A$)$ the investment purchase authorization that has been issued and put in operation in the separate account will no longer be in effect unless there are provisions to the contrary

B$)$ accumulation units in the old contract will be converted to annuity units in the new contract using a ratio of $3$:$1$

C$)$ capital gains treatment will no longer be available

D$)$ the favorable tax benefits for variable annuities available at distribution have now been forfeited