HB 6113 Summary

• Replaces "suitability" standard with "best interest" standard requiring insurance producers to act in consumers' best interest without prioritizing their own financial interests when recommending annuities.

• Requires producers to exercise reasonable diligence and care by knowing the consumer's financial situation and needs, understanding available options, having reasonable basis for recommendations, and communicating the basis of recommendations.

• Mandates prominent disclosure to consumers before annuity sales including the scope of the producer-consumer relationship, products the producer is authorized to sell, number of insurers represented, compensation sources and types, and consumer rights to request additional compensation information.

• Establishes insurer supervision system requirements including producer training, pre-issuance review procedures, monitoring for non-compliant recommendations, assessment of information provided to consumers, and elimination of sales contests based on specific annuity sales within limited timeframes.

• Takes effect 6 months after enactment and is contingent on passage of HB 6112, HB 6114, and HB 6115 in the 100th legislature.