HomeLife InsuranceCalifornia Annuity Gross sales Rule Invoice Stalls

California Annuity Gross sales Rule Invoice Stalls


The California State Legislature isn’t transferring ahead with SB 263, a invoice to replace annuity gross sales requirements this is supported by way of the insurance coverage trade however has drawn fierce opposition from shopper teams.

The invoice sailed in the course of the state Senate in Might, and not using a opposing votes on the committee stage or at the state Senate flooring. It will create new conflict-of-interest disclosure requirements for existence insurance coverage brokers who promote annuities, however defines “clash of curiosity” to exclude “coins and non-cash repayment.”

“Agent repayment of any sort, together with coins and non-cash repayment, will have to be disclosed to customers when buying existence insurance coverage,” the Existence Insurance coverage Client Advocacy Heart mentioned in a commentary. “SB 263 would have additionally deceived customers by way of permitting brokers to inform customers that they have been safe by way of a client’s absolute best curiosity same old, with out requiring brokers to place shopper pursuits first.”

Alternatively, Whit Cornman, spokesperson for the American Council of Existence Insurers, advised ThinkAdvisor that “California customers deserve the protections followed in 40 different states, overlaying 76% of the inhabitants. This absolute best curiosity same old immediately addresses conflicts of curiosity and protects get admission to to services and products moderate-income savers need and want for a protected retirement.”

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