The Utah Insurance Department has put out a bulletin giving its views on individual annuity surrender charges.

Utah has laws, for example, that forbid use of annuity bonuses that are available only for annuitization, officials say in Bulletin 2011-2.

Utah requires that, on or past the maturity date, the cash surrender value be equal to the amount used to determine annuity benefits. That rule prohibits the sale of two-tier annuities in Utah, officials say.

Fixed subaccounts within variable annuities are subject to the same laws that apply to fixed annuity contracts.

- Allison Bell

Other surrender charge coverage from National Underwriter Life & Health: