CA AB2066

Requires all insurers, brokers, agents, and others selling annuities to seniors (age 65+) to disclose all material facts and features of the annuity, including how Medi-Cal can become a beneficiary if the senior receives home or facility care.

Mandates a written disclosure notice in 12-point type with a detailed checklist that must be completed, initialed by the senior, and signed by the senior, spouse (if applicable), and the licensed producer or insurer.

Prohibits sale of annuities to seniors whose purpose is to affect Medi-Cal eligibility when assets are at or below the community spouse resource allowance or when the senior would otherwise qualify for Medi-Cal.

Establishes that selling an annuity is presumptively improper under conditions including: senior has a reverse mortgage, holds 50% or more of countable assets as annuities, or the surrender penalty period exceeds the senior's life expectancy.

Requires producer compensation for annuities with surrender penalties to be paid annually and spread evenly over the surrender period, with surrender penalties capped at either compensation already paid or total compensation minus amounts already paid.