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Investors interested in purchasing an annuity in Florida should always verify their agent's state insurance and Financial Industry Regulatory Authority licenses prior to making the investment. Investors should also research the type of annuity they are purchasing so that they can fully understand the risks associated with, and terms of, the annuity. The Florida Department of Insurance is the regulatory body that oversees the sale of annuities in Florida. Prior to purchasing the annuity, investors can do a simple investigation by verifying the insurance company and its agent with the Department.

An annuity is a form of insurance that offers a series of payments for a period of time. Three options are usually provided to investors:

-Fixed Annuities: funds are invested in conservative investments. The return to investors may vary, but a minimum rate of return must be established. Buyers cannot establish their own asset allocation.

-Variable Annuities: are typically higher in risk and depend on how the stock market is performing. Buyers have the option to allocate the cash invested into different types of assets such as mutual funds, indices, fixed income investments or bonds, and cash. Variable annuities do not guarantee principal protection, so investors can lose money if markets deteriorate.

-Equity-Indexed Annuities: are hybrids of fixed and variable annuities. They are more risky that fixed annuities and less risky than variable annuities. Returns are based on market returns, but they also offer a minimum rate of return.

-Annuities are not suitable for all investors. Insurance agents should make sure that they understand their client's goals prior to selling an annuity. Investors should also do their own investigation to make sure that they annuity they are interested in fits their needs and risk tolerance.

If an unlicensed insurance agent sold you a fixed, variable, or equity-indexed annuity, you may be able to rescind your contract and recover your lost principal. Call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation.

The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website,, post a comment, call (800) 732-2889, or email Mr. Pearce at for answers to any of your questions about this blog post and/or any related matter.