CS/HB 167 - Annuities

• Expands annuity recommendation requirements to apply to all consumers, not just seniors, with recommendations based on consumer suitability information including age, income, financial situation, objectives, and risk tolerance.

• Requires insurers and agents to collect suitability information using form DFS-H1-1980 before executing annuity purchases, exchanges, or replacements, with records maintained for 5 years.

• Establishes supervision systems for insurers including agent training, product-specific education, review procedures for recommendations, and annual reports to senior management on supervision effectiveness.

• Limits surrender and deferred sales charges on annuities issued to persons 65 years or older to a maximum of 10 percent of amounts withdrawn, with charges eliminated after 10 policy years.

• Increases the unconditional refund period for all fixed and variable annuity contracts to 21 days (from 14 days) and requires cover pages on annuity contracts with specific consumer disclosures in bold 12-point type; effective October 1, 2013.