State RegulationsFL specificDifficulty 1/5
A Florida agent is arranging for a client to surrender an existing deferred annuity and purchase a new one from a different insurer. To which transactions does Florida's annuity best-interest standard apply?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under Chapter 627, Florida Statutes, the best-interest standard for annuity recommendations applies to the sale, replacement, and exchange of annuity contracts, so the agent arranging this replacement must satisfy the same care, disclosure, and documentation duties as in a brand-new sale. Treating a replacement as exempt would invite DFS discipline precisely where consumer harm is most likely to occur.
Why the other options are wrong
- A) Replacements are expressly within the standard's scope; exempting them would defeat the rule's purpose.
- B) The standard covers fixed as well as variable annuities.
- C) The standard protects all annuity consumers; it is not limited by the consumer's age.
Memory hook
Sell, replace, exchange: best interest covers all three.