Oracle® Rules Palette Release 9.1.0.0.0 E15811-01

# Full Surrender

A Full Surrender occurs when an annuity owner decides he or she wants out of the contract and will surrender the annuity with or without a penalty. Most companies charge a surrender fee if the owner decides to cancel the contract within the first seven to eight years of owning it. As a general rule, the shorter amount of time elapsed in the annuity, the more surrender fees the issuing company will require. For example, if the annuity has a seven-year surrender period, and it is surrendered in the first year, the owner may pay seven percent of the value of the investment to the company. However, if surrendered in the second year, the owner may pay only six percent, and so on.

In the Product Templates the following items are deducted from the contract value.

- Surrender charges

- Un-recovered rider charges

- Un-recovered anniversary charges

- Bonus re-captures

After processing a Full Surrender activity, a disbursement activity is automatically generated. Once the disbursement activity is processed, the policy status changes from active to surrendered and the user will not be able to add new activities to the policy.