State RegulationsFL specificDifficulty 3/5
A Florida agent sells a fixed annuity to a consumer. What refund right and disclosure must the contract include under Florida law?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under Fla. Stat. 626.99(4)(b),(c), annuity contracts, fixed and variable, must provide an unconditional refund for 21 days, and the contract must carry the required cover-page disclosure. For a fixed annuity the refund is the full premium including fees; only variable or market-value-adjusted annuities may limit the refund to the cash surrender value plus fees.
Why the other options are wrong
- A) The 14-day period is the Buyer's Guide delivery condition for ordinary individual life policies, not the annuity refund period.
- B) Thirty days is the free-look period for Medicare supplement and long-term care coverage, not for annuities.
- D) Limiting the refund to cash surrender value is permitted only for variable or market-value-adjusted annuities; a fixed annuity must refund the full premium.
Memory hook
Fixed annuity, full refund: 21 days, stated on the cover page.