State RegulationsFL specificDifficulty 1/5
How must a Florida annuity contract inform the owner of the free-look right?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Fla. Stat. 626.99(4)(b),(c), an annuity contract must carry a cover-page disclosure telling the owner about the free-look right, the 21-day unconditional right of return. Printing it on the cover page ensures the owner sees the right immediately, rather than having to hunt through the contract text or rely on the agent's recollection at delivery.
Why the other options are wrong
- A) A verbal explanation does not satisfy the statute; the disclosure must appear on the cover page of the contract.
- C) Mailing notice after the free look expires defeats the very right it announces.
- D) A website notice is not the required vehicle; the contract itself must disclose the right on its cover page.
Memory hook
The annuity free look lives on the cover page.