Annuity Suitability & Best Interest

Florida applies its annuity standard to every annuity sale or recommendation, not just to seniors: the agent must act in the best interest of the consumer at the time of the recommendation, without placing the agent's or insurer's financial interest ahead of the consumer's — supported by a reasonable inquiry into the consumer's profile (age, income, financial situation and needs, experience, objectives, intended use, time horizon, existing assets, liquidity needs, risk tolerance, tax status). Age 65 matters for one thing only: an annuity issued to a consumer 65 or older may not carry a surrender charge exceeding 10% of the amount withdrawn, and the charge must reach zero after 10 policy years (or 10 years after each premium). (F.S. 627.4554)