OP here just doing a follow up.
The annuity has never been transferred because Sentinel Security (where it is now) still insists they never received a 1035 from Transamerica to move it. Transamerica insists they sent the completed 1035 and letter of acceptance five times....3 by mail, 2 by fax, once by email.
My sister has opened a complaint with the Michigan Department of Financial Services which manages insurance concerns. They told her they are submitting inquires to both companies, and they have 20 days in which to respond.
Meanwhile, the fixed annuity contract has renewed at Sentinel for another five years at 2.9% interest. I asked her to check that interest again because so many of you were impressed at that amount....and yep...she emailed me a copy of the renewal letter stating 2.9% for five years. She agrees this whole thing could have been in her favor, but is still angry that her instructions weren't followed.
"Some people describe themselves as being able to see a glass half full. For some, the glass is half empty. Me? I can't even find the f***king glass."