Multiple Choice
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1.
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Which of the following are correct regarding the regulation of variable
annuities?
a. | variable annuities are subject to Florida’s Insurance Code | b. | variable annuities
are subject to by the SEC and FINRA | c. | both a and b | d. | neiterh a nor
b |
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2.
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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 |
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3.
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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 |
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4.
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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 |
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5.
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Before making a recommendation under Florida’s Senior Suitability law, an
agent must ascertain all of the following EXCEPT:
a. | the age of the client’s dependents | b. | the client’s
tax bracket | c. | the client’s past investment experience | d. | the client’s
net worth |
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6.
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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 |
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7.
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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 |
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8.
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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 |
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9.
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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 |
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10.
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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 |
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11.
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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 |
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12.
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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 |
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13.
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FINRA Annuity Suitability Rule 2821 applies to the recommendation of a sale or
exchange of:
a. | variable annuities for senior consumers | b. | variable annuities
for all consumers | c. | all annuities for senior
consumers | d. | all annuities for all consumers |
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14.
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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 |
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15.
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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 |
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