SB 263 Summary

• Establishes new "best interest" standard for annuity sales effective January 1, 2025, requiring producers to act in consumers' best interests when recommending annuities and insurers to maintain supervision systems to ensure compliance.

• Requires producers recommending annuities to obtain and consider consumer profile information (including age, income, financial situation, insurance needs, and financial objectives) and disclose compensation, licensing scope, and product features before or at time of sale.

• Mandates life insurers provide annuity buyer's guides to all consumers purchasing annuities and requires producers to complete 8-credit hour annuity training course before selling annuities, with 4 continuing education credits every two years.

• Applies new life insurance training requirements starting January 1, 2025: agents licensed after January 1, 2024 must complete 4 hours of training before selling nonterm life insurance, and all agents must complete 2 hours before each license renewal for variable life insurance policies.

• Maintains existing "suitability" standards for annuity transactions occurring before January 1, 2025, with new "best interest" standards applying to transactions on or after that date; authorizes Insurance Commissioner to impose sanctions and require corrective action for violations.