I inherited 1/3 of an annuity account. Is it required for companies, if requested to payout lump sum on inherited annuity account and not charge fees?
It depends on the contact which set up the annuity, but this is almost certainly NOT something they are required to do -- and if they do it you're subject to their determination of what the balance would be.
An annuity is an insurance product. When it was purchased, a specific agreement was made that included analyzing the probable rates of return the money could get, the expected duration of payments, the cost of managing this account and profit for the company. To cancel that agreement I expect you'd at least need to give them a reasonable profit, and possibly pay a penalty, and quite possibly make good any excess payments they made based on the expectation of later income from investment. And even if some form of cancellation is permitted, it may be an all-or-nothing deal rather than letting you cancel just 1/3.
Get a copy of the annuity policy. Read it. If in doubt ask the company; if you don't like their answer ask a lawyer to review it. Good luck.