As the Government Accountability Office urges more Americans to look towards the best annuities for retirement, state and local governments are issuing laws to ensure consumers are protected. US Insurance published an article about two impending California laws, “California officials urge approval of two annuity reform bills.” The bills passed through the state legislature and are now awaiting approval from the Governor. Dave Jones, the Insurance Commissioner, is hoping the bills will be passed soon. Seniors would receive more protection from one bill and the other would better inform the annuity marketplace in California.
Bill number one requires insurance companies to provide full standards on their annuity products. They have to ensure that the products are suitable for the individuals looking to purchase the annuities. For example, someone shouldn’t be sold an annuity where they have to pay extra for death benefits when they aren’t concerned about passing money onto heirs. Bill number two is put in place to protect seniors. Lenders who issue reverse mortgages will be banned from selling annuities that don’t make sense with their product line. Insurance Commissioner Jones is pleased to have this legislation so close after years of trying to pass suitability regulations.
Written by Rachel Summit