7.9 Annuity invest by Seniors

In 2004, the Florida legislature handle the disability of an elderly consumers with regard come annuity investments. (For objectives of this lesson with regard come annuity invest by seniors, "senior consumers" are identified as those individuals who are age 65 or older.) through law, the agent need to make all reasonable initiatives to attain the consumer"s age.

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An agent is forced to have actually reasonable grounds because that believing the the recommendation is suitable for the senior based upon the facts disclosed through the senior regarding his/her investments, various other insurance products, and also his/her gaue won situation.

Are there certain standards and procedures that need to be followed in order come make recommendations for annuity products to consumers age 65 and also older?

Yes. The facts that have to be collected from the senior consumer are:

1. An individual information, including the age and sex of the parties to the annuity and the periods and number of dependents;

2. Tax condition of the consumer;

3. Investment missions of the consumer;

4. Source of accumulation being provided to acquisition the annuity;

5. The applicant"s annual income;

6. Intended usage of the annuity;

7. The applicant"s existing assets, including investment holdings;

8. The applicant"s liquid network worth and also liquidity needs;

9. The applicant"s jae won situation and needs;

10. The applicant"s hazard tolerance; and

11. Such other information used or thought about to be relevant by the insurance agent or insurer in making recommendations to the consumer about the purchase or exchange of an annuity contract.

This info must be built up on a form adopted through the Department and signed by the applicant and also agent. If the senior consumer does no wish to provide all the this information, the agent must obtain from the an elderly consumer a signed verification type that he/she refuses to carry out the requested information and also may be limiting protections about the suitability the the sale.

An certified dealer is compelled to preserve records relating to together transactions for five years (the insurer may preserve these records on instead of of the agent).

If a senior consumer is harmed by one insurance firm or agent who violates the regulations relating come the revenue of annuity products, the Office may order one insurer to take reasonably suitable corrective action, consisting of rescission of the policy or contract and a full refund the the premiums payment or the build-up value, whichever is greater.

The Department might order an insurance money agent, MGA, or insurance firm that employs or contracts with an insurance certified dealer to market or solicit the sale of annuities to an elderly consumers to take it reasonably suitable corrective action.

Replacement or Exchange of an Annuity Contract

In transactions entailing the replacement or exchange of one annuity contract, the agent have to provide, ~ above a form, information concerning differences in between the currently annuity contract and the one gift recommended, including:

1. A compare of the benefits, terms, and also limitations;

2. A comparison of any fees and charges;

3. A created basis for the encourage exchange, including the overall benefits and disadvantages to the consumer;

4. Such various other information considered relevant by the agent or insurer in making referrals to the consumer.

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Before the purchase or exchange of an annuity contract, an certified dealer must additionally disclose the there may be tax after-effects as a result of the purchase or exchange and that the applicant must consult a tax advisor for much more information.

Continuing Education

There are particular continuing education requirements that need to be fulfilled in order for an certified dealer to proceed selling annuities. An certified dealer holding a license to solicit or market life insurance allowance in this state must complete a minimum of three (3) hrs of continuing education on the subject of suitability in annuity and life insurance allowance transactions.

Each licensee except a location insurance certified dealer must finish a 5-hour upgrade cg-tower.com every 2 year which is details to the license hosted by the licensee. The cg-tower.com need to be developed and offered by providers and also approved by the department. The content of the cg-tower.com must deal with all lines of insurance because that which examination and also licensure space required and also include the following subject areas: insurance law updates, ethics for insurance money professionals, disciplinary trends and also case studies, market trends, premium discounts, identify suitability that products and services, and other similar insurance-related subject the department determines are relevant to legally and ethically delivering out the responsibilities of the license granted. A licensee who holds multiple insurance patent must complete an update cg-tower.com the is specific to at the very least one of the licenses held. Except as otherwise specified, any kind of remaining compelled hours of proceeding education space elective and also may consist of of any kind of continuing education cg-tower.com approved by the room under this section.


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