Florida Statutes, Rules, and Regulations Pertinent to Life and Annuity Insurance, Including Variable Products

An agent proposes funding a new policy from an existing policy's values, with no clear gain for the client. Which two Florida authorities bear on this?

Answer and explanation
Answer: B. Section 626.9541(1)(aa) prohibits using existing policy values to purchase another policy for additional premiums or commissions without an objectively reasonable basis for believing it benefits the policyholder, and rule 69O-151.202 requires the Policy Disclosure Form and written procedures to avoid churning. The other pairs address unrelated subjects.Source: Fla. Admin. Code r. 69O-151.202 — 69O-151.202 read with 626.9541(1)(aa)

On the exam in: Florida · difficulty: hard

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