Florida Statutes, Rules, and Regulations Pertinent to Life and Annuity Insurance, Including Variable Products
An annuity marketed to Florida consumers aged 65 and over carries a fifteen percent surrender charge. What is the difficulty?
Answer and explanation
Answer: A. Section 627.4554(9) provides that an annuity 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65 or older may not contain a surrender or deferred sales charge for a withdrawal exceeding 10 percent of the amount withdrawn, so fifteen percent is over the limit. Surrender charges are not banned outright, disclosure does not cure an excessive charge, and the elimination rule runs to the tenth year rather than the fifth.Source: Fla. Stat. § 627.4554 — 627.4554(9), Senior protection as a limit on practice
More florida statutes, rules, and regulations pertinent to life and annuity insurance, including variable products questions
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