A customer from New Jersey seeks to purchase an annuity in Florida. At a minimum, what should the agent do?

• A. Decline the application
• B. Advise to relocate
• C. Refuse to process due to out-of-state residency
• D. Proceed with the application provided identity is verified

Answer: (D)

The key idea is to complete the basic Know Your Customer steps: verify the buyer’s identity. In anti-money-laundering for insurance, confirming who the customer is is the minimum safeguard before processing any financial product. If the customer’s identity is verified, you can move forward with the application even when the purchase involves an out-of-state transaction, because residency alone does not automatically block the sale. The transaction would then continue under the insurer’s normal processes (including suitability review and state compliance) provided all other required information is in place.