Does Florida law require an insurer to take any action if an applicant indicates that a variable annuity is the only source of retirement income?

Florida law indeed stipulates that there are certain requirements when dealing with variable annuities, particularly regarding the suitability of the product for the individual seeking it. The correct answer notes that there is no specific requirement that mandates an insurer to act merely on the indication that an applicant is considering a variable annuity as their only source of retirement income.

Insurers are generally expected to ensure that products sold to clients are suitable for their financial needs and circumstances; however, the law does not impose an explicit obligation for insurers to perform a suitability assessment or provide disclosures solely based on an applicant's statement regarding their retirement income sources. This means that if an applicant mentions a variable annuity as their only source of retirement income, the insurer may not have a legal obligation to take further action beyond standard practices, such as the general underwriting processes and disclosures.

In contrast, the other choices suggest requirements that imply an additional layer of obligation on the part of the insurer. The necessity for a suitability assessment, written disclosures, or warnings would derive from more comprehensive regulatory guidelines, which, while important in the field of financial products, do not specifically mandate action in the scenario presented according to the law in Florida. Therefore, the answer reinforces the understanding that such situations may not trigger additional