In an effort to protect seniors from fraudulent investments, Congress added a federal grant proposal to a high-profile Senate bill last week.
According to Jennifer Liberto of CNNMoney.com, the proposal would “set aside $8 million for states that bulk up oversight,” equaling up to $500,000 per state to investigate and prosecute shady dealings against seniors. However, the states must agree to bring their current laws up to national consumer protection standards.
The proposal, which focuses mainly on annuity sales, is driven by Senator Herb Kohl, D-Wis., chairman of the Special Committee on Aging. Kohl intends to use the federal grants to encourage states to make the move towards tougher laws — a move that has lobbying group, the American Council of Life Insurers, hoping for a different approach.
“It seems like what he’s attempting to do is going to set too high a bar for the states to cross,” said spokesman Jack Dolan of Kohl’s plan.