KCAL Insurance Agency
Phone: (800) 681-8288 E-mail: info@kcal.net
California annuity buyers get new protections in 2012
A new California law protecting consumers who buy annuities will go into effect Jan. 1. The law will require insurance companies to verify that an annuity purchase, replacement or exchange is reasonably suitable for the consumer based on an evaluation of the person's age, income, liquidity needs and financial objectives, among other factors. It will also require that a consumer receive a tangible net benefit from an annuity purchase. The law gives the state's Department of Insurance the authority to revoke an insurance agent's license, impose fines or order that lost funds be restored to a consumer when an unsuitable annuity is sold. An annuity is an investment product sold by life insurance companies to provide an income stream during retirement.
Source:Insure.com