Safeguard Our Seniors Becomes Law
Along with Governor Charlie Crist’s approval of a bill streamlining commercial insurance rates (SB 2176) came approval of the “Safeguard Our Seniors” annuity legislation. The “safeguard Our Seniors” provisions were added to the commercial deregulation bill late in teh session and mark the culmination of three-year effort by CFO Alex Sink to pursue changes to Florida’s annuity sales laws. Throughout her term, CFO Sink has prioritized actions against persons committing fraud in annuity transactions with seniors.
“Finally, the Legislature and the Governor did the right thing by enacting better protections and harsher penalties against senior scammers,” said CFO Sink. “I fought for three years for the Safeguard Our Seniors legislation after meeting with hundreds of senior victims throughout Florida and hearing their heartbreaking stories. This legislation will have a real impact.”
The Safeguard Our Seniors Act, originally sponsored by Senator Mike Bennett and Representative Maria Sachs includes the following:
* Increases the financial penalty for the willful act of “twisting” or “churning” of an annuity to a maximum of $75,000, which is intended to be a strong disincentive to this unlawful behavior.
* 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, bringing that marketer under the regulatory authority of the department.
* 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.