Legal Memorandum: Funding agreements and Annuity Policy

Issue: Under California law, do funding agreements fall within the common definitions of an annuity policy?

Area of Law: Business Organizations & Contracts, Insurance Law
Keywords: Funding agreements; Annuity policy
Jurisdiction: California
Cited Cases: None
Cited Statutes: Cal. Ins. Code § 10541(b); I.R.C. § 104(a)(2); Cal. Ins. Code §§ 10606, 10506.4
Date: 05/01/2015

As a general observation, “funding agreements” are excluded from the common annuity contemplated in life insurance policy annuities.  See Cal. Ins. Code § 10541(b) (specifically excluding term, “funding agreement,” where payments are excludable under I.R.C. § 104(a)(2)).  In any event, the annuity policy may be subject to certain requirements.  Cal. Ins. Code §§ 10606, 10506.4. 


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