Select the answer that accurately completes this sentence: When an annuity owner dies, _______. (Search Chapter 1)

a. Any values remaining in the annuity contract must be paid out and the contract terminated.

b. All interest earnings the annuity accumulated are distributed tax free to the beneficiary.

c. Any values remaining in the annuity contract are subject to a penalty tax imposed by the IRS.

d. Ownership of the annuity automatically passes to the decedent's estate.