69B-162.011: Suitability and Disclosure in Annuity Contracts-Forms Required.
PURPOSE AND EFFECT: The proposed rule implements Section 627.4554, Florida Statutes by adopting an Annuity Suitability form and a Disclosure and Comparison of Annuity Contracts form for use in sales of annuities to senior consumers.
SUBJECT AREA TO BE ADDRESSED: The implementation of Section 627.4554, Florida Statutes.
SPECIFIC AUTHORITY: 624.308(1), 627.4554(9) FS.
LAW IMPLEMENTED: 627.4554 FS.
IF REQUESTED IN WRITING AND NOT DEEMED UNNECESSARY BY THE AGENCY HEAD, A RULE DEVELOPMENT WORKSHOP WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:
TIME AND DATE: Monday, February 2, 2009, 9:30 a.m.
PLACE: Room 116, Larson Building, 200 East Gaines Street, Tallahassee, Florida
Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 5 days before the workshop/meeting by contacting: Susan Jordan, (850)413-5655 or email: susan.jordan@myfloridacfo.com. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE DEVELOPMENT AND A COPY OF THE PRELIMINARY DRAFT, IF AVAILABLE, IS: Susan Jordan, Government Analyst II, Bureau of Investigation, Division of Insurance Agents and Agency Services, Department of Financial Services, 200 East Gaines Street, Tallahassee, Florida 32399-0319, (850)413-5655
THE PRELIMINARY TEXT OF THE PROPOSED RULE DEVELOPMENT IS:
69B-162.011 Suitability and Disclosure in Annuity Contracts – Forms Required.
(1) Forms Adopted. Forms DFS-HI-XXXX, “Annuity Suitability Questionnaire,” (Effective:________) and DFS-HI-YYYY, “Disclosure and Comparison of Annuity Contracts” (Effective:______), are adopted pursuant to Sections 627.4554(4)(b) and (d) F.S., and are hereby incorporated by reference, effective January 1, 2009.
(2) Application. This rule applies exclusively to any recommendation or solicitation to purchase or exchange an annuity contract as defined in Section 627.4554(3), F.S., made to a senior consumer by an insurance agent or an insurer, which results in the purchase or exchange recommended. A senior consumer is a person 65 years of age or older. In a joint purchase or exchange, if any party is 65 or older the joint purchasers are considered to be senior consumers.
(3) Duties of Insurers and Insurance Agents.
(a) Before executing a purchase or exchange of an annuity to a senior consumer, an insurance agent or an insurer must use form DFS-HI-XXXX, Annuity Suitability Questionnaire incorporated in subsection (1) above, to obtain information in order to determine the suitability of the recommendation.
(b) In addition to obtaining the information required by paragraph (a), before executing a replacement or exchange of an annuity contract to a senior consumer, the insurance agent or insurer must also provide contract comparison information to the senior consumer utilizing form DFS-HI-XXXX, Disclosure and Comparison of Annuity Contracts, incorporated in subsection (1) above.
(c) The type face for all printed questions or requests for information directly from the consumer, and all portions of the referenced forms relating to the disclosure requirements pursuant to paragraphs (3)(a) and (b) above, must be of least 12-point type.
(d) Nothing in this rule shall prevent the insurer from adapting the forms adopted in subsection (1) for its use, provided the forms still contain all of the same information as the department forms referenced above, and meet the type size requirement of paragraph (3)(c) above.
Specific Authority 624.308(1), 627.4554(9) FS. Law Implemented 627.4554 FS. History–New_________.