MI SB0467

Establishes suitability standards requiring insurance producers and insurers to have reasonable grounds for believing annuity recommendations are suitable based on consumer's financial situation, needs, age, income, risk tolerance, and other specified factors.

Requires producers and insurers to obtain consumer suitability information before executing annuity purchases, exchanges, or replacements, and to document recommendations and any consumer refusals to provide information.

Mandates insurers establish supervision systems to ensure compliance with annuity regulations, including producer training, procedures to review recommendations before issuance, and procedures to detect unsuitable recommendations.

Requires all insurance producers to complete a one-time 4-credit annuity training course approved by the commissioner covering annuity types, tax implications, sales practices, and replacement requirements, effective within 6 months for existing producers and before sale for new producers.

Prohibits producers from discouraging consumers from truthfully responding to suitability confirmation requests, filing complaints, or cooperating with complaint investigations; effective June 1, 2013.