Title: Amends State Consumer Annuity Laws and Regulations
Signed by Governor Doug Ducey
Title: Amends State Consumer Annuity Laws and Regulations
Vote to pass a bill that amends state consumer annuity laws and regulations.
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).
Title: Amends State Consumer Annuity Laws and Regulations
Title: Amends State Consumer Annuity Laws and Regulations