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Florida Governor Signs New Bill Expanding Protections on Annuity Products

Florida Governor Signs New Bill Expanding Protections on Annuity Products

Florida Governor Signs New Bill Expanding Protections on Annuity Products 150 150 Rex Securities Law

JUNE 2013-Florida Governor Rick Scott signed Bill 166 which substantially revises Florida consumer protection laws relating to the sales of annuities. The bill incorporates the 2010 National Association of Insurance Commissioners (NAIC) model regulation on annuity protections.

It expands the scope of the consumer protection laws to generally include all consumers purchasing annuities. The prior law only applied the protections to consumers aged 65 and older. The continues the prior law limiting the surrender charges and deferred sales charges that may be imposed on senior citizens.

The primary protections include:

Documenting Sales Transaction:
Agents are required to record recommendations made to a consumer.

Unconditional Refund Period-Expanded from 14 to 21 days for all purchasers of fixed and variable annuities.

Limit on Surrender Charges
– Retians prohibition against surrender charges or deferred sales charges in annuity contracts issued to a senior consumer exceeding 10% of the amount withdrawn. The charge must be reduced so that no surrender or deferred sales charge exists after the end of the 10th policy year or 10 years after the premium is paid, whichever is later.

Penalites-authorizes corrective action, penalties and sanctions on insurers and agents. Agents must pay restitution to a consumer whose money the agent misappropriates, converts, or unlawfully withholds.

The law goes into effect October 1, 2013.

If you were sold an annuity based upon misrepresentations from the selling agent/broker or if you purchased an annuity that is not suitable given your age, health, financial circumstances, you may be able to recover damages.

Rex Securities Law , located in Boca Raton, FL, provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

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