Under Florida law, a variable annuity policyowner must be notified of the accumulated value of the contract?

Under Florida law, variable annuity policyowners are required to receive notifications about the accumulated value of their contracts at least once each year. This annual notification is pivotal for policyowners as it provides them with critical information regarding the performance of their investment, ensuring they are kept up to date on how their annuity is growing over time.

The intention behind this requirement is to enhance transparency and enable policyowners to make informed decisions about their financial planning and retirement strategies. Provider companies are expected to maintain clear communication with their clients, and this annual requirement serves to reinforce that commitment. By being informed once a year, policyowners can assess their investment's progress, understand any fees or charges applied, and determine if any adjustments need to be made to their investment strategies.

Other frequencies for notification, such as monthly, quarterly, or biannually, do not align with Florida's established legal requirements. While more frequent updates might seem beneficial, the law specifically designates an annual report as sufficient for keeping policyowners informed in a manageable and practical manner.