Signed by Governor Doug Ducey

Vote Smart's Synopsis:

Vote to pass a bill that amends state consumer annuity laws and regulations.

Highlights:

• Requires the producer of an annuity to act in the best interest of the consumer under the circumstances at the time when a recommendation for one is made (Sec. 4). 

• Requires producers to have the care and skill to do the following (Sec. 4):

• Know the consumer’s financial situation, insurance needs and financial objections;

• Understand the available recommendation options after making a reasonable inquiry into options available to the producer;

• Have a reason to believe that the recommendation is in the best interest of the consumer and would benefit from the annuity;

• Communicate the basis of the recommendation;

• Make reasonable efforts to obtain consumer profile information from the consumer; and

• Consider the types of products the producer is authorized to sell or recommend to the consumer.

• Requires insurers, agents, independent agencies, businesses and consumers to maintain records of consumer profile information for at least 5 years after a business transaction is made (Sec. 6).

• Prohibits producers from soliciting annuities unless they have adequate knowledge of the product they are trying to sell (Sec. 7).

• Requires insurers to complete the following by July 1, 2021 (Sec. 8):

• A new 4-hour annuity training course; and

• An additional one-time, one-hour course on appropriate sales practices, replacement and disclosure requirements.

• Repeals Section 8 of this bill on January 1, 2022 (Sec. 8). 

• Establishes that this bill takes effect on December 31, 2020 (Sec. 9).

Full Bill Text