Multiple Choice
Identify
the choice that best completes the statement or answers the question.
When you
have answered all of the questions, click the “Check Your Work” button to review the
correct responses.
When you finish,use the “Back” button on your browser to
return to the study text.
.
|
|
|
1.
|
Which of the following is NOT a prohibited practice?
a. | twisting | b. | churning | c. | replacement | d. | stripping |
|
|
|
2.
|
In a practical sense, which of the following are subject to the disclosures
required under Florida’s Annuity Suitability law?
a. | sale of fixed annuities to all consumers | b. | sale of variable
annuities to senior consumers | c. | sales of indexed annuities to senior
consumers | d. | all of the above |
|
|
|
3.
|
Florida’s Senior Suitability law defines a senior consumer as one:
a. | age 60 and older | b. | age 65 and older | c. | age 70 and
older | d. | age 75 and older |
|
|
|
4.
|
Under Florida’s Senior Suitabilty law, a recommendation is defined
as:
a. | any advice the agent provides on annuities to senior consumers | b. | an annuity
transaction that follows the advice of an agent | c. | any sale, exchange, replacement, or transfer of
an annuity | d. | none of the above |
|
|
|
5.
|
Florida’s Senior Suitability law requires agents to make recommendations
based on:
a. | what the agent believes is in the best interests of the client | b. | an objective
standard | c. | reasonable efforts to ascertain the client’s investment objectives, financial
situation and needs | d. | the prudent man
rule |
|
|
|
6.
|
If a client refuses to give the agent the information required by
Florida’s Senior Suitability law, the agent:
a. | may not make any recommendations to that client | b. | must have the client
sign a form noting that fact before making any recommendation to that client | c. | will totally
absolved from any duty to make suitable recommendations to that client | d. | must notify the
Department of Financial Services prior to making any recommendations to that
client |
|
|
|
7.
|
If a senior customer holds other annuities, a Florida life agent must ascertain
which of the following?
a. | the type of contracts | b. | applicable surrender
charges | c. | the asset allocation within variable contracts | d. | all of the
above |
|
|
|
8.
|
Florida law requires agents who recommend an annuity transaction to senior
consumers to complete a written questionnaire. The agent must:
a. | file the questionnaire with the Department of Financial Services | b. | submit that
questionnaire to his or her supervisor for approval | c. | submit that questionnaire to the annuity
company within 10 days of the application | d. | all of the
above |
|
|
|
9.
|
Florida law requires that completed copies of the suitability questionnaire be
retained by:
a. | the agent | b. | the issuing company | c. | third party
marketers | d. | all of the above |
|
|
|
10.
|
Which of the following items do not need be retained as part of the Senior
Suitability law?
a. | applications | b. | customer questionnaires | c. | Buyers’
Guides | d. | contract illustrations |
|
|
|
11.
|
If the Office of Insurance Regulation finds that an unsuitable recommendation
has harmed a senior consumer, the Office has the power to:
a. | revoke the agent’s license | b. | cancel the contract and order a refund of the
investment | c. | pursue criminal prosecution | d. | all of the
above |
|
|
|
12.
|
As a result of the FINRA exception to Florida’s Annuity Suitability law,
this state law effectively applies to the sale or exchange of:
a. | all types of annuities to all annuity purchasers in the state | b. | all types of
annuities to senior consumers in the state | c. | fixed and indexed annuities to all annuity
purchasers in the state | d. | fixed and indexed annuities to senior consumers
in the state |
|
|
|
13.
|
In Florida, Contract Summaries and Buyer’s Guides must be given to
purchasers of
a. | fixed annuities | b. | indexed annuities | c. | variable
annuities | d. | all of the above |
|
|
|
14.
|
Regarding Florida’s Free Look law, purchasers have the right to a refund
of their premiums within:
a. | 10 days for the purchase of fixed and indexed annuities | b. | 10 days for the
purchase of fixed, indexed and variable annuities | c. | 14 days for the purchase of fixed and indexed
annuities | d. | 14 days for the purchase of fixed, indexed and variable
annuities |
|
|
|
15.
|
An agent misleads a client into surrendering her whole life insurance policy
with Acme Insurance, and recommends that she purchase an immediate annuity from Acme with the cash
value. The agent then sells the client an Acme flexible premium, deferred annuity -- using part
of the immediate annuity payments to pay the premium on the deferred annuity. This is an
example of
a. | twisting | b. | direct churning | c. | indirect
churning | d. | stripping |
|
|
|
16.
|
Which of the following disclosures by an agent to a senior consumer would most
likely be prohibited under Florida law?
a. | I am a Certified Senior Financial Advisor | b. | I hold a designation
as a Certified Financial Planner. | c. | I hold a Series 6 license by FINRA to sell
variable annuities and mutual funds | d. | all of the above
|
|
|
|
17.
|
FINRA requires that registered representatives make a written determination of
the suitability of his or her recommendations. That written determination is then given to
the:
a. | representative’s supervisor | b. | client | c. | annuity
company | d. | all of the above |
|
|
|
18.
|
When comparing Florida’s Senior Suitability law and FINRA’s Annuity
Suitability rule:
a. | Florida law imposes a subjective standard, FINRA imposes an objective
standard | b. | Florida law imposes an objective standard, FINRA imposes a subjective
standard | c. | both Florida law and FINRA impose objective standards | d. | both Florida law ans
FINRA impose subjective standards |
|
|
|
19.
|
Which of the following require an agent or registered representative to
ascertain whether the client has exchanged other annuity contracts in the 36 months prior to a
recommended annnuity transaction?
a. | FINRA’s Rule 2821 | b. | Florida’s Senior Suitability
Law | c. | both a and b | d. | neither a nor b |
|
|
|
20.
|
A client currently owns a variable annuity contract that is invested in a
balanced growth stock separate account. The client’s advisor recommends that the client
switch to a more volatile small cap account. Which of the following requires an agent or
registered representative to determine, in writing, reallocation of investments within a variable
annuity ?
a. | FINRA’s Rule 2821 | b. | Florida’s Senior Suitability
Law | c. | both a and b | d. | neither a nor b |
|
|
|
21.
|
In which of the following transactions does the written determination of
suitability under FINRA Rule 2821 apply?
a. | Alan recommends that his client exchange a variable annuity for a fixed
annuity | b. | Betty recommends that her client surrender a fixed annuity | c. | Caridad recommends
that her client surrender a variable annuity | d. | none of the
above |
|
|
|
22.
|
Which of the following recommendations does NOT require a written determination
of suitability under either FINRA or state law?
a. | Anita recommends that her 55-year old client exchanges a deferred variable annuity
for another variable contract issued by a different company | b. | Bernard recommends
that his 55-year old client purchase an equity indexed annuity | c. | Christina recommends
that her 70-year old client purchase a variable annuity | d. | Dante recommends
that his 72-year old client exchange an equity indexed annuity for a fixed contract issued by the
same company |
|
|
|
23.
|
Under Florida law, when recommending an annuity transaction to a senior
consumer, a copy of the completed questionnaire must be:
a. | submitted to the issuing company with the application | b. | submitted to the
issuing company within 7 days | c. | submitted to the issuing company within 10
days | d. | none of the above |
|
|
|
24.
|
Which of the following are responsible to assure an agent’s compliance
with Florida’s Senior Suitability law?
a. | the agent | b. | the agency the agent works
for | c. | the company the agent submits applications to | d. | all of the
above |
|
|
|
25.
|
Under state law, documents related to annuity recommendations for senior
consumers must be retained for:
a. | 1 year | b. | 2 years | c. | 3
years | d. | 5 years |
|