Florida Annuity Law Passes Senate

A bill intended to curb abusive practices by insurance agents is advancing in Florida.

TheFlorida Senate Banking and Insurance Committee unanimously passed SB 1372, also known as “Safeguard Our Seniors.” The act aims to crack down on “twisting” or “churning” of annuities to senior consumers. If enacted, such practices would be a third-degree felony, under Florida law.

The legislation also proposes to limit the surrender charge period for an annuity sold to a senior consumer to five years, the surrender charge to 5%, and to extend the “free look” period for the purchase of an annuity by a senior consumer to 60 days from the current period of 14 days.

Moreover, the law would require an agent to make monetary restitution to a senior consumer they’ve harmed, and prohibit licensees who have had his license revoked resulting from the solicitation or sale of an insurance product to a senior consumer from obtaining a new one.