Free Annuities Practice Questions
Florida Life, Health & Variable Annuity (2-15) exam (series 2-15) — 67 practice questions.
Subtopics: Annuity free look, Best interest scope, Variable annuity refund, Annuity cover page, Consumer profile, Agent disclosure form, Replacement analysis, Refusal to provide information, Annuity record retention, Annuity restitution, Senior surrender charges, Annuity training, Recommendation to surrender, Churning definition, Principles, Immediate vs deferred, Products, Payment options, Uses, Taxation, Parties to an annuity, Flexible premium annuity, Cash refund option, Installment refund option, Period certain option, Annuity units, Separate account, Tax-deferred accumulation, Exclusion ratio, Early withdrawal penalty, Annuitization, Death before annuitization, Qualified vs nonqualified, Structured settlement, Annuity exclusion ratio, Indexed annuities, Market value adjustment, Variable annuities, Payout options, Bonus annuities, Annuity disclosure, Annuity death benefit, Annuity taxation, 1035 exchanges, Surrender charges, Parties, Suitability
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Sample questions & answers
1. Florida requires every fixed or variable annuity contract to provide an unconditional refund period of at least:
21 days
Section 626.99(4)(b) requires a 21-day unconditional refund period for all fixed and variable annuity contracts, not only those sold to seniors.
2. Florida's best-interest standard for annuity recommendations (s. 627.4554) applies to consumers who are:
Any age, whenever an annuity is recommended
Since Florida adopted the NAIC best-interest model, s. 627.4554 applies to any recommendation or sale of an annuity regardless of the consumer's age; the former senior-only suitability rule no longer exists.
3. During Florida's 21-day unconditional refund period for a variable annuity, the refund must equal:
The cash surrender value plus fees and charges, or a refund of all premiums
For variable or market value annuities, the refund equals the cash surrender value plus fees and charges deducted, or a return of all premiums paid.
4. Florida requires an annuity contract to include a cover page that informs the purchaser of the unconditional refund period and provides:
The Department's toll-free help line and contact information for the insurer and agent
Section 626.99(4)(c) requires a cover page showing the refund period, insurer and agent contact information, the DFS toll-free help line, and required bold disclosures.
All Life, Health & Variable Annuity (2-15) topics
Practice: Annuities
Answer choices are shuffled every time, and every question comes with an explanation.
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
