Dan's Blog
California Proposing Modest Annuity Reform (so of course the industry is freaking out)
April 25, 2023
According to the authors of SB 263: Insurance: Annuity & Life Insurance Consumer Protection (Bill Dodd) …
- SB 263 will protect consumers, including vulnerable seniors, from potential abuse and exploitation by curtailing harmful sales of annuities and life insurance policies by requiring producers to consider only the interests of the consumer in making a recommendation and complying with the obligations set forth in SB 263.
- SB 263 will also decrease the number of sales of life insurance and annuities to consumers that are not in consumers’ best interests by prohibiting insurance producers from receiving incentives beyond allowable commissions or fees (such as prizes, rent reimbursement, etc. ) for their sales and also prohibiting producers from making sales when they do not know if the product is in the consumer’s best interest.
So of course the insurance industry is taking the news well as reflected by this email that was shared with me...
Rule of Thumb
The more the insurance industry freaks out about legislation the better it is for consumers.
Questions fo Annuity Sales Agents
- If your product is so good how does disclosure and removal of incentives impact sales?
- If working in "someone's best interests" threatens sales, perhaps there's a problem with your product?
Free Idea for Insurance Industry
Offer products that actually help people.
Track Bill
You can track the bill here.
Stay wise and well (and know that an entire industry is working to maintain the status quo)
