MI HB4328

Establishes suitability requirements for insurance producers and insurers recommending annuity purchases, exchanges, or replacements, requiring reasonable grounds based on consumer's financial situation, age, income, risk tolerance, and other factors.

Mandates insurers implement supervision systems to ensure producer compliance with annuity sales requirements, including producer training on annuity products, review procedures before issuance, and annual reporting to senior management on system effectiveness.

Requires insurance producers selling annuities to complete a one-time 4-credit training course approved by the commissioner covering annuity types, taxation, sales practices, and replacement disclosure requirements, with existing life insurance agents having 6 months to comply.

Provides consumers a 15-day cancellation right after annuity delivery to return the policy for a full refund and requires insurers to provide disclosure documents and buyer's guides at or before application, with annual account statements showing contract values and charges.

Prohibits variable annuity sales and supervision standards less stringent than FINRA requirements and allows compliance with federal financial industry regulatory authority standards to satisfy state requirements if the insurer monitors the broker-dealer and provides necessary reports.