Although we mostly blog in Santa Monica and Brentwood about changes in the health insurance industry, as I am licensed to sell Annuities, I wanted to inform you about the important changes Commissioner Jones introduces for Annuities Protection AB689.
“Far too long, seniors have been victimized by the aggressive marketing and sale of annuity products that may not be suitable for them.” Accordingly to Commissioner Jones. “Consumers have unwittingly bought these products not realizing that their invested funds will not be available to them, or their funds are terribly expensive to recover if they want to withdraw their money to pay for immediate expenses. This can be financially devastating to seniors on fixed income.
AB689 will require insurers to verify than an annuity purchase, replacement or exchange is reasonable suitable for the consumers based on a evaluation of the individual’s age , income, liquidity, financial goals and other factors. It also requires that consumers receive a tangible benefit from the purchase of the annuity.
The commissioner has the right fine or even revoke an agent’s license, and/or order that lost funds be restored to the consumer when unsuitable annuity is sold.
A welcome step to for consumers, especially for seniors from not buying unsuitable annuity products in Santa Monica and the rest of California.