Florida Toughens Penalties on Unsuitable Annuity Sales
July 7, 2008
A new Florida law more than doubles the penalties for improperly selling annuities to the state’s seniors or to residents who are developmentally disabled.
The new law, backed by life insurers and Florida regulators, increases the penalty for “churning” or other deceptive life insurance and annuity sales practices to $250,000 from $100,000, according to published reports. An insurer or insurance agent must also show that an annuity recommendation to a senior was reasonable.
An agent will also have to complete three hours of continuing education on suitability in annuity transactions. The law increases the period of time allowed for an unconditional refund to 14 days from 10 days.
“Annuity sales have become a big business in Florida, and seniors, in particular, often have fallen victim to unethical sales practices," Florida Insurance Commissioner Kevin McCarty said. “This new law will give Florida the enforcement power it needs to better protect our vulnerable senior population.”For more information on related topics, visit the following:
