When replacing or exchanging an annuity, what must the agent disclose to the annuitant?
Understand the Problem
This question assesses knowledge of regulations surrounding annuity replacements or exchanges, specifically focusing on required disclosures by the agent to the annuitant. The question requires identifying the most critical disclosure item from the provided options.
Answer
The agent must disclose all benefits, risks, and potential tax ramifications.
When replacing or exchanging an annuity, the agent must disclose all benefits and risks associated with the transaction, including potential tax ramifications.
Answer for screen readers
When replacing or exchanging an annuity, the agent must disclose all benefits and risks associated with the transaction, including potential tax ramifications.
More Information
Disclosures ensure the annuitant makes informed decisions.
Tips
Failing to disclose all information can lead to regulatory and legal issues.
Sources
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