Florida Life and Health Insurance License Practice Test

How often must a variable annuity policyowner be notified of the accumulated value of the contract under Florida law?

1. Once a month

2. Once every six months

3. Once each year

4. Once every two years

The correct answer is: Once each year

Variable annuity policyowners in Florida must be notified of the accumulated value of their contract at least once every year. This is required by Florida law in order to ensure that policyowners are aware of the current value of their investment and can make informed decisions about their finances. Option A is incorrect because it would be too frequent and could potentially cause unnecessary stress and confusion for the policyowner to receive a notification every month. Option B is incorrect because it is not frequent enough to keep policyowners informed about the value of their contract. Option D is also incorrect because it is not frequent enough and could result in policyowners being unaware of significant changes in the value of their contract for long periods of time. Overall, option C strikes a balance between providing regular updates and not overwhelming policyowners with too frequent notifications.