Final answer:
The false statement about an annuity owner is that the owner must be the party to receive benefits. An owner has control over paying premiums, naming beneficiaries, and may surrender the annuity, but the owner is not obliged to be the recipient of the annuity payments.
Step-by-step explanation:
The subject of this question revolves around the characteristics of an annuity owner. Annuities are financial products designed to provide a steady income stream, typically during retirement. The question asks which statement is false regarding an annuity owner.
The correct answer is that the statement A is not true: "The owner must be the party to receive benefits." In reality, the owner of the annuity does not necessarily have to be the recipient of the benefits. While the owner does pay the premiums (statement B) and has the right to name a beneficiary (statement C), they are also the party who can surrender the annuity (statement D).
Therefore, it is not required for the annuity owner to be the one who receives the benefits. This role can be designated to another individual, as per the annuity contract specifications. An owner's primary control includes paying premiums, naming beneficiaries, and the decision to surrender the policy for its cash value, if applicable.