State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
Under California's annuity suitability article, the suitability requirements apply to an annuity that is:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Section 10509.913(a) defines "annuity" for the suitability article as an annuity that is an insurance product under California law that is individually solicited, regardless of whether the product is classified as an individual or group annuity. The key trigger is individual solicitation, a producer working directly with a consumer, not the policy form. Employer-sponsored qualified plans are separately exempted under Section 10509.912.
Why the other options are wrong
- B) Direct response solicitations with no recommendation based on collected information are exempt under Section 10509.912(a).
- C) Annuities funding employer-established 403(b) plans are exempt under Section 10509.912(b)(2).
- D) Annuities funding government 457 plans are exempt under Section 10509.912(b)(3).
Memory hook
The trigger is the personal pitch, not the policy label: individually solicited means suitability applies, group or individual.