You may need to talk to a tax professional. @dmertz
First, code D indicates a non-qualified annuity. That means you only pay tax on the portion of a withdrawal that represents earnings, not the contributions. Second, inherited annuities can't be rolled over to another annuity, but sometimes they can be rolled over to an inherited IRA. Third, a non-qualified annuity can't be rolled over to an IRA. It must be exchanged for a similar instrument via a section 1035 exchange.
It seems most likely that your spouse withdrew the funds and used them to purchase a new annuity in his name. In that case, the withdrawal is fully taxable according to the normal rules for withdrawals, and the tax consequences of buying a new annuity would follow whatever rules normally apply to buying an annuity.
If you aren't sure what he did, you should have the paperwork reviewed by a tax professional.
