New law establishing suitability standards for the sale of annuities effective July 26, 2009
Overview
2009 legislation - ESSB 5671 requires insurers and agents selling fixed and variable annuities to confirm that the insurance product is suitable for the consumer.
Under the new law, insurance companies and producers selling or replacing an annuity must make reasonable efforts to obtain a consumer's:
- Financial status
- Tax status
- Investment objectives, and
- other information considered reasonable when making a recommendation to the consumer.
The company and producer must keep records of any information collected and used as the basis for recommendations for five years after the sale or for five years after the annuity begins paying benefits, whichever is longer.
Questions
Phone: 360-725-7144
Email: Licinfo@oic.wa.go
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