No, surrender charges still apply. Rollover will be between carriers (customer never sees the money). Cost basis info also is communicated to the new carrier. No tax on the gain when exchanging life to life, annuity to annuity, or life to annuity (cant exchange annuity to life). Ultimately a taxable event if/when client surrenders, which is why it is important to make sure cost basis info is communicated to new carrier.
