Quiz: the annuity they already own

Not quite. Look at the contract, not the agent. Never criticize a colleague to the client.

Right. Say who you are and why you called. Then book the review as its own meeting, with two times to choose from.

Not quite. Don't debate rates on the phone. You need the statement and the contract first.

Right. Ask for dollars, not a percent. A percent can sit on top of an MVA.

Not quite. The percent is only part of the picture. Ask the carrier for the surrender value in dollars.

Not quite. A bonus may cover part of the cost, but it is not the cost. Check its vesting schedule and its new lock-in.

Not quite. An insurance license alone does not cover securities. A variable annuity must go through a registered broker-dealer.

Not quite. A signature does not change who may recommend a security. The licensing rule stands.

Right. A variable annuity is a security. The representative needs the right registration, the insurance license and appointment, and the broker-dealer's approval before any exchange.

Not quite. The client must see it and sign it first.

Right. The notice is part of the file, and the client keeps a copy.

Not quite. The application does not replace the notice.

Right. A 1035 exchange swaps one annuity for another between insurers, for non-qualified money. IRA money moves by transfer.

Not quite. No. What decides it is the type of money, not the type of annuity.

Not quite. Ratings do not decide the tax route. The type of money does.