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

An annuity is issued to a Florida consumer aged 68 who later withdraws funds. What limit applies to the surrender or deferred sales charge?

Answer and explanation
Answer: A. Section 627.4554(9) provides that an annuity contract issued to a senior consumer age 65 or older may not contain a surrender or deferred sales charge for a withdrawal exceeding 10 percent of the amount withdrawn. The section caps the charge rather than eliminating it, and it does not measure the cap by credited interest or set it at five percent.Source: Fla. Stat. § 627.4554 — 627.4554(9), Senior consumer surrender charge

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