A. Annuities may use a beneficiary designationin case of the annuitant s death B. Premature distributions are subject to a 15% penalty tax in order to discourage the use of annuity contracts as a short-term tax shelter. C. Owners of individual annuities have contracted rights beginning at the time of purchase. D. Business Corporations may use annuities to provide pensions for employees, either nonqualified or qualified plans, or to structure payments of liability settlements.