In Florida, how often must financial capability be proven?

The correct answer indicates that financial capability must be proven three specific instances. In Florida, certain financial transactions or services require verification of a customer's financial status to ensure they can meet their obligations. This is particularly important in situations that involve substantial financial risk, such as investment or insurance products.

For example, when a customer is applying for a new policy, making a significant change to an existing policy, or if there are indications that their financial circumstances have changed, companies need to reassess the customer’s financial capability. This not only protects the provider but also helps ensure that the customer is making informed decisions appropriate to their financial situation.

In contrast, proving financial capability only once a year, every three years, or only when applying for a new policy offers an incomplete assessment. It could potentially allow customers to enter into agreements that exceed their financial capacity if their situation deteriorates after the initial assessment, which could lead to financial difficulties down the line. Therefore, regular assessment during critical moments ensures continuous compliance and protection for both the customer and the provider.