State RegulationsFL specificDifficulty 2/5
When a Florida agent sells a fixed annuity, what refund right must the contract give the buyer?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Fla. Stat. 626.99(4)(b),(c), annuity contracts - fixed and variable alike - must give the buyer 21 days of unconditional refund. For a fixed annuity the refund is the full premium including fees; for a variable or market-value-adjusted annuity it is the cash surrender value plus fees. The cover page must disclose the refund right. This 21-day annuity rule is distinct from the 14-day figure tied to life policy Buyer's Guide delivery under 626.99(4)(a).
Why the other options are wrong
- B) The 14-day figure belongs to ordinary life policies and the Buyer's Guide delivery condition, not annuities.
- C) 30 days is the free-look period for Medicare supplement and long-term care policies.
- D) Annuities do carry a mandatory unconditional refund right - 21 days - so this option is simply wrong.
Memory hook
Annuity regret window: 21 days, money back.