69B-162.011. Suitability and Disclosure in Annuity Investments - Forms Required

(1) Pursuant to section 627.4554, Florida Statutes (F.S.), the following forms are incorporated by reference and available from the Office of Insurance Regulation of the Financial Services Commission’s website at https://floir.com/life-health/annuities:

(a) Appendix A - Insurance Agent (Producer) Disclosure for Annuities, DFS-H1-1990, effective 05/24, which is also available at http://www.flrules.org/Gateway/reference.asp?No=Ref-16581;

(b) Appendix B - Consumer Refusal to Provide Information, DFS- H1-1991, effective 05/24, which is also available at http://www.flrules.org/Gateway/reference.asp?No=Ref-16582; and

(c) Appendix C - Consumer Decision to Purchase an Annuity Not Based on a Recommendation, DFS-H1-1992, effective 05/24, which is also available at http://www.flrules.org/Gateway/reference.asp?No=Ref-16583.

(2) Pursuant to section 627.4554, F.S., upon written request for records by the department, an insurer or agent must:

(a) acknowledge receipt of such request in writing to the requestor, indicating the date the request was received, within seven (7) calendar days of receipt of such request; and

(b) provide a copy to the requestor of any records requested within 14 calendar days after receipt of such request.

(3) Duties of Insurers and Insurance Agents.

(a) Before executing a purchase or exchange of an annuity to a consumer, an insurance agent or an insurer, unless exempted by Section 627.4554(5)(i), F.S., and required by the Financial Industry Regulatory Authority to perform an alternative suitability analysis, must use form DFS-H1-1980, Annuity Suitability Questionnaire, incorporated in subsection (1), above, to obtain information in order to determine the suitability of the recommendation.

(b) In addition to obtaining the information required by paragraph (a), before executing a replacement or exchange of an annuity contract to a consumer, the insurance agent or insurer must also provide contract comparison information to the consumer utilizing form DFS-H1-1981, Disclosure and Comparison of Annuity Contracts, incorporated in subsection (1), above.

(c) The type face for all printed questions or requests for information that will be directly received or answered by the consumer, and all portions of the referenced forms relating to the disclosure requirements pursuant to paragraphs (3)(a) and (b), above, must be of least 12-point type.

(d) Nothing in this rule shall prevent an insurer from adapting the forms adopted in subsection (1) for its use, upon written approval of any modifications by the Department. The Department shall approve an insurer’s modification to the forms provided:

1. The forms still contain all of the same information as the Department forms referenced above;

2. The type size requirement of paragraph (3)(c), above is met;

3. Additional material added to the form does not obscure the information required, or rearrange the required information in such a way as to make it more difficult to find or understand;

4. The revised form does not contain misrepresentations or misleading statements, and is not in any other way in violation of Section 626.9541, F.S.

(e) Insurers are permitted to modify the form to use check-off boxes for indication of investment experience and risk tolerance, but shall not substitute check-off boxes for any other items on the form.

(f) The addition of an insurer’s name, contact information, or trademark; the addition of borders; or changes in font which do not alter type size, do not require prior written approval by the Department.

(g) Approval by the Department does not preclude disapproval by the Florida Office of Insurance Regulation pursuant to any provision of the Florida Insurance Code, and rules adopted there under.

Rulemaking Authority 624.308(1), 627.4554(9) FS. Law Implemented 627.4554 FS. History–New 12-25-09, Amended 10-21-14, 5-22-24.