Safeguard Our Seniors Heads to Governor’s Desk
Senator Mike Bennett, Representative Maria Sachs and CFO Alex Sink, among others, have been pursuing legislation for several sessions to increase regulatory protections for senior citizens in annuity transactions. Although the proposals appeared at times to be stalled in the current session, they were amended onto a broader insurance bill at the end of the session and passed as part of SB 2176. The bill now will await action by Governor Crist.
“After three years of standing up for Florida’s seniors and refusing to back down to the special interests, … we’ve made a difference for our state,” said CFO Sink.
“I especially want to commend Senator Mike Bennett, who stood with me for years tirelessly pursuing tougher safeguards for our seniors and getting this bill unanimously passed through the Florida Senate. I also want to credit Representative Maria Sachs, who was able to lead this legislation to victory in the House, and all the members of our bipartisan Safeguard Our Seniors task force.”
The Safeguard Our Seniors Act contains the following provisions:
Increases the financial penalty for the willful act of “twisting” or “churning” of an annuity to a maximum of $75,000.
- Limits the period of a surrender charge for an annuity sold to a senior consumer (age 65 or older) to 10 years and limits the surrender charge to 10 percent.
- Extends the “free look” period for the purchase of an annuity by a senior consumer from 14 to 21 days.
- Authorizes the Department of Financial Services to require an agent to make monetary restitution to a senior consumer harmed by a violation of the insurance code under certain circumstances.
- Includes a third party marketer that aids and abets an insurance agent in the violation of the insurance code involving an annuity sale to a senior consumer as an affiliated party of the insurance agent, giving DFS regulatory authority over the marketer.
- Gives DFS authority to take license disciplinary action against an agent who has been disciplined under his or her securities broker-dealer license or a related license.
- Prohibits DFS from issuing a license to a former licensee who has had his or her license revoked resulting from the solicitation or sale of an insurance product to a senior consumer.
- Extends the prohibition on a life insurance agent being the beneficiary of a life insurance policy by including the agent’s family members within the prohibition and by prohibiting the agent from serving as a guardian, trustee, or having power of attorney over the insured.
- Requires an insurer to provide a cover sheet attached to the policy when an annuity is issued informing the purchaser about the free look period and about how to contact the insurer and the department if they have questions about the annuity.
- Allows the use of video depositions in administrative hearings involving a senior consumer and requires compliance with the Rules of Civil Procedure.