State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Before recommending an annuity to a California consumer, the producer must gather suitability information that includes:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
California's annuity suitability rule (Section 10509.913) requires the producer to collect 14 specific items before recommending an annuity, including age, annual income, financial situation and needs, financial experience, investment objectives, time horizon, existing assets, liquidity needs, liquid net worth, risk tolerance, tax status, and others. The recommendation must be suitable for the consumer's circumstances.
Why the other options are wrong
- B) Health history is not among the 14 suitability factors; suitability is financial, not medical.
- C) Bank account numbers are sensitive data never required for suitability purposes.
- D) Marital status alone would be grossly insufficient; the rule requires a full financial profile.
Memory hook
Suitability = the 14-question financial X-ray before selling an annuity. Age, income, goals, liquidity, risk tolerance — know the client before the pitch.