Sunshine State Panel OKs Annuity Bill

Members of the Florida Senate Banking and Insurance Committee today voted 8-0 for a bill that would update the state’s annuity sales laws.

The bill, S.B. 2082, would define churning as a third-degree felony; make cases of churning that involve consumers ages 65 and older or consumers who suffer from mental incapacity second-degree felonies; and classify the practice of insurance agents submitting policy-related documents bearing fraudulent signatures to insurers as a third-degree felony.

The bill, introduced by Sen. Michael Bennett, R-Bradenton, Fla., also would require agents to warn consumers about any surrender charges that might result from proposed annuity transactions and to document why they believe that the annuity products they are recommending are suitable for the purchasers.