State RegulationsFL specificDifficulty 2/5
To have a reasonable basis for an annuity recommendation in Florida, what must the agent make reasonable efforts to obtain?
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 B is correct
Under Florida law administered by the Office of Insurance Regulation (Chapter 626, Florida Statutes), the agent must make reasonable efforts to obtain the consumer's financial status, tax status, investment objectives, and other information needed to evaluate whether a recommendation is in the consumer's best interest. Without that information there is no reasonable basis for the recommendation, and making it anyway exposes the agent to discipline.
Why the other options are wrong
- A) Age and address alone cannot support a reasonable basis for an annuity recommendation.
- C) Medical records are relevant to underwriting, not to evaluating the financial suitability of an annuity.
- D) A waiver does not excuse the agent from the duty to gather suitability information.
Memory hook
No facts, no recommendation: finances, taxes, objectives.