Name: 
 

Chapter 1 -- Senior Suitability



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 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
 

 2. 

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
 

 3. 

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
 

 4. 

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
 

 5. 

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
 

 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. 

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
 

 14. 

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
 

 15. 

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
 



 
Check Your Work     Start Over