The Florida State Senate has unanimously passed a law that would extend annuity suitability requirements to all ages, not just seniors age 65 and older. The bill also seeks to amend the law as it pertains to the unconditional refund period and impose stricter criteria when an agent recommends the exchange or replacement of an annuity.
This latest regulation incorporates the NAIC's 2010 Suitability in Annuity Transaction Model Regulation, which details consumer protections when selling annuities to the public. Under the law, an agent or insurer must 'have reasonable grounds for believing the recommendation is suitable for the consumer, based on the consumer's suitability information." Agents also would be required to record all recommendations made to a consumer and refrain from persuading a consumer to make untrue statements during the suitability fact-finding process.
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