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Industry Awareness
New Requirements of Insurers and Insurance Agents in Annuity Sales to Seniors
Recently-enacted Section 627.4554, Florida Statutes, requires a determination to be made about the suitability of an annuity when selling to individuals age 65 or older (“Seniors”). The new law also requires certain disclosures and an objective comparison of annuity contracts when recommending the exchange or replacement of a Senior’s annuity. Forms for this purpose have been developed by the Department and are in the process of being finalized through formal rulemaking.
The notice of rule development was filed on January 5th, and will be published on January 16th in the Florida Administrative Weekly. In the interim, insurers and insurance agents should adhere to the requirements outlined in Section 627.4554, F.S. to determine senior suitability or to compare annuity contracts prior to an exchange. Pursuant to the statute, use of the forms will become mandatory 60 days after the rule is adopted.
The attached forms, developed to track the statutory requirements noted above, are being provided for your convenience to facilitate the required suitability determination required.
(Click here for Annuity Disclosure Comparison form) (Click here for Annuity Suitability Questionnaire form)
If you have questions regarding your responsibilities in complying with the provisions of the new law, and to ensure a prompt and accurate response, e-mail us at AskDFS@MyFloridaCFO.com. If you are unable to communicate by e-mail, you may call 850-413-5697.