Florida Life and Health Insurance License Practice Test

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Prepare for the Florida Life and Health Insurance License Test. Study with flashcards and multiple choice questions, each with hints and explanations. Get ready for your certification exam with ease!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What must an agent disclose when replacing or exchanging an annuity?

The new interest rates
The benefits of the new company
The possible tax ramifications
The agent's commission

The correct answer is: The possible tax ramifications

An agent must disclose the possible tax ramifications when replacing or exchanging an annuity. While the other options may also be relevant information, they are not required to be disclosed in this case. The new interest rates and benefits of the new company may be important considerations for the client, but they are not necessary to be disclosed by the agent. Similarly, the agent's commission may be a factor in their recommendation, but it is not required to be disclosed in this particular situation. Disclosing the possible tax ramifications is essential for ensuring that the client fully understands the potential financial implications of replacing or exchanging their annuity.