2009 Florida Law Changes for Annuities

[Financial John]

I was wondering if any Florida agents have been having any problems with this. I am new to the business. The law appears to have passed on 1-16-2009.

The 2009 law says you have to provide a detailed cost comparison breakdown of the annuities. Is there a form? Any suggestions?

The law has penalties for "improper" sales to seniors 65 or over. A new CE course. 14-day policy cancellation is now added.

The 2009 law has criminal penalties for signing paperwork - which no one in their right mind would consider. They also have serious penalities for "willful" churning & twisting.

Would any Florida agent try to replace an old annuity? Anything sold by youa few would probably be suicide.

What about if the client was sold something that is not very good and a new annuity would improve their situation? Something like a new annuity with an income rider could help the client, they want it but the company might not even look at it.

I heard that some companies will not even touch replacements and if you even attempt to submit anything - they will drop you. Thanks for any input.

 

[Charpress]

Welcome to the world of regulatory panic.

This is just a taste of what is coming at us from all directions, fed state and local.

With the current climate, regulators seem to feel that they need to pass "something" to show they care and that nothing bad is going to happen on their watch.

 

[insuranceexec]

I was wondering if any Florida agents have been having any problems with this. I am new to the business. The law appears to have passed on 1-16-2009.

The 2009 law says you have to provide a detailed cost comparison breakdown of the annuities. Is there a form? Any suggestions?

The law has penalties for "improper" sales to seniors 65 or over. A new CE course. 14-day policy cancellation is now added.

The 2009 law has criminal penalties for signing paperwork - which no one in their right mind would consider. They also have serious penalities for "willful" churning & twisting.

Would any Florida agent try to replace an old annuity? Anything sold by youa few would probably be suicide.

What about if the client was sold something that is not very good and a new annuity would improve their situation? Something like a new annuity with an income rider could help the client, they want it but the company might not even look at it.

I heard that some companies will not even touch
replacements and if you even attempt to submit anything - they will drop you. Thanks for any input.

http://firmseek.dreamhosters.com/fowler/SeibelActArticle2.pdf

Above is a link that addresses the very issue. If you have any questions after you read this; just list them, I and others will help clarify. I hope this helps.

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[Vanbret]

I think Georgia is starting to implement regulations like that now too...

 

[padthaiforlunch]

Thanks for the link. Won't keep me out of Florida when I get tired of winters. Don't twist and churn and you'll be fine. The def. of churning seem rather limited -- upgrading using same carrier for higher commission product.

http://firmseek.dreamhosters.com/fowler/SeibelActArticle2.pdf

Above is a link that addresses the very issue. If you have any questions after you read this; just list them, I and others will help clarify. I hope this helps.

</IMG>

 

[insuranceexec]

Thanks for the link. Won't keep me out of Florida when I get tired of winters. Don't twist and churn and you'll be fine. The def. of churning seem rather limited -- upgrading using same carrier for higher commission product.

I agree. In my opinion the next set of regulations will be geared towards cracking down on client cancellations.

They, The DOI, are trying to cut down on the agents who will just have the client "surrender" the annuity contract; therefore, by-passing state replacement laws.

 

[padthaiforlunch]

They, The DOI, are trying to cut down on the agents who will just have the client "surrender" the annuity contract; therefore, by-passing state replacement laws.

I don't think it gets anywhere close to that. Mostly BS pfap from the DOI claiming to protect seniors.

Have low surrender charges and want to switch to another carrier with a bonus that will offset the charge? No problem. Especially if it lets you reset the annual pt-to-pt so the client can have some gain if the market comes back in the next year.

 

[insuranceexec]

I don't think it gets anywhere close to that. Mostly BS pfap from the DOI claiming to protect seniors.

Have low surrender charges and want to switch to another carrier with a bonus that will offset the charge? No problem. Especially if it lets you reset the annual pt-to-pt so the client can have some gain if the market comes back in the next year.

Again something you and I agree on. I see nothing wrong with the aforementioned. The DOI is another story. There is an example here in Arkansas; where by an agent lost their license by not filling out the replacement paperwork as required by the state.

When they asked him why he did it; he answered "I could get paid faster"...................Nothing like the simple truth.............LOL