HB-4627 Summary

• Establishes suitability requirements for insurance producers and insurers recommending annuities, requiring reasonable grounds to believe recommendations are suitable based on consumer's age, income, financial situation, objectives, risk tolerance, and other factors.

• Requires insurers to maintain supervision systems including producer training, product-specific materials, pre-issuance review procedures, and annual compliance reports to detect unsuitable recommendations.

• Mandates insurance producers complete a one-time 4-credit annuity training course covering annuity types, taxation, sales practices, and replacement/disclosure requirements before selling annuities.

• Implements consumer protections including a 15-day free-look cancellation period, separate notice of right to cancel, and prohibition on dissuading consumers from truthfully responding to suitability confirmation requests.

• Creates Chapter 41B establishing annuity disclosure requirements for insurers, including detailed disclosure documents in plain English and an annually published buyer's guide explaining annuity types, charges, tax treatment, and suitability factors.