Heads Up CA Agents.

[VolAgent]

More of a "head's up in CA" regarding annuities is that CA has adopted NAIC's Annuity Suitability Model which means if your client complains at any time in future, it can be reviewed, deemed unsuitable and the carrier is forced to cancel the policy and refund.

That is such complete and utter BS. Not that the carrier can be held liable. The carrier should face just as much liability as the agent. What is pure junk is that they are going to review it in hindsight, and consider facts that were not evident at the time of the sale. Reference the thread about the producer going to jail because woman had undiagnosed dementia.

This is just yet another witch hunt pushed by banks, and broker/dealers. They are tired of watching money flow from them into other products. Instead of revamping their products, they just use the media and state legislators to tilt the playing field.

Is there a suitability review to buy a CD, to buy no-fee index funds, to trade shares online, etc?