CS/CS/HB 1065 Summary

• Extends annuity recommendation requirements to all consumers, not just seniors, requiring insurers and agents to base recommendations on consumer suitability information collected on specified forms.

• Requires insurers to establish supervision systems to ensure recommendations are suitable, including agent training, product-specific materials, and procedures for reviewing and detecting unsuitable recommendations.

• Prohibits surrender or deferred sales charges exceeding 10 percent of withdrawal amounts for annuities issued to persons age 65 or older, with charges eliminated after the 10th policy year.

• Increases unconditional refund periods for fixed and variable annuities from 14 days to 21 days and makes such refunds available to all prospective buyers regardless of age.

• Effective date: October 1, 2012.