California 2009-2010 Regular Session Status: In Committee

AB 2066 — Annuity sales: seniors.

Last action — From committee without further action.

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Assembly
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2009-2010 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

Existing law generally regulates insurance, including annuity products. Existing law requires a life insurance agent to provide specified disclosures to seniors 65 years of age or older in certain circumstances. Existing law also prohibits the sale of an annuity to a senior in specified circumstances. This bill would require all insurers, brokers, agents, and others engaged in the transaction of insurance who offer to sell an annuity to a senior to disclose to the senior, as defined, all material facts and features of the annuity that he or she knows or reasonably should know are likely to affect the decision of the senior to purchase the annuity, including, but not limited to, the fact that if the senior ever receives Medi-Cal home or facility care, the state would become a beneficiary of certain annuities purchased by the senior or his or her spouse. The bill would also require all insurers, brokers, agents, and others engaged in the transaction of insurance who offer to sell an annuity to a senior to provide the senior with the required written notice with all blanks filled in and initialed by the senior, and signed by the senior, the senior's spouse, if any, and the licensed producer or insurer in the transaction. The bill would delineate conditions under which it would be presumptively improper to sell an annuity to a senior. The bill would make the sale of an annuity to a senior without fulfilling the written notice requirement or under circumstances described as presumptively improper, a violation of the duty owed to a prospective insured who is 65 years of age or older of honesty, good faith, and fair dealing. The bill would also make the sale of an annuity to a senior without fulfilling the written notice requirement, or under the circumstances described as presumptively improper, financial abuse of a senior, as defined, and thereby make that sale subject to reporting requirements and civil penalties pursuant to other provisions of law. The bill would require compensation to brokers, agents, and others who act as the producer in a transaction involving the sale of an annuity with a surrender penalty to a senior, be paid on an annual basis spread or trailed evenly over the surrender period of the annuity. The bill would prohibit the surrender penalty charged from exceeding either the compensation already paid to the producer at the time of surrender or the total compensation to be paid to the producer less any amount already paid to the producer, as prescribed.

Bill Text

Action History

  1. From committee without further action.

  2. In committee: Set, first hearing. Held without recommendation.

  3. Re-referred to Com. on INS.

  4. Read second time and amended.

  5. From committee: Amend, do pass as amended, and re-refer to Com. on INS. (Ayes 7. Noes 2.) (April 13).

  6. Re-referred to Com. on JUD.

  7. From committee chair, with author's amendments: Amend, and re-refer to Com. on JUD. Read second time and amended.

  8. Re-referred to Com. on JUD. by unanimous consent, and then be re-referred to Com. on INS.

  9. Referred to Coms. on INS. and JUD.

  10. From printer. May be heard in committee March 23.

  11. Read first time. To print.

Sponsors

  • Jones · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on

Sponsors (1)

  • Jones

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Votes

Subjects

public-safety finance civil-rights
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Frequently asked questions

What does AB 2066 do?
Existing law generally regulates insurance, including annuity products. Existing law requires a life insurance agent to provide specified disclosures to seniors 65 years of age or older in certain circumstances. Existing law also prohibits the sale of an annuity to a senior in specified circumstances. This bill would require all insurers, brokers, agents, and others engaged in the transaction of insurance who offer to sell an annuity to a senior to disclose to the senior, as defined, all material facts and features of the annuity that he or she knows or reasonably should know are likely to affect the decision of the senior to purchase the annuity, including, but not limited to, the fact that if the senior ever receives Medi-Cal home or facility care, the state would become a beneficiary of certain annuities purchased by the senior or his or her spouse. The bill would also require all insurers, brokers, agents, and others engaged in the transaction of insurance who offer to sell an annuity to a senior to provide the senior with the required written notice with all blanks filled in and initialed by the senior, and signed by the senior, the senior's spouse, if any, and the licensed producer or insurer in the transaction. The bill would delineate conditions under which it would be presumptively improper to sell an annuity to a senior. The bill would make the sale of an annuity to a senior without fulfilling the written notice requirement or under circumstances described as presumptively improper, a violation of the duty owed to a prospective insured who is 65 years of age or older of honesty, good faith, and fair dealing. The bill would also make the sale of an annuity to a senior without fulfilling the written notice requirement, or under the circumstances described as presumptively improper, financial abuse of a senior, as defined, and thereby make that sale subject to reporting requirements and civil penalties pursuant to other provisions of law. The bill would require compensation to brokers, agents, and others who act as the producer in a transaction involving the sale of an annuity with a surrender penalty to a senior, be paid on an annual basis spread or trailed evenly over the surrender period of the annuity. The bill would prohibit the surrender penalty charged from exceeding either the compensation already paid to the producer at the time of surrender or the total compensation to be paid to the producer less any amount already paid to the producer, as prescribed.
Who sponsors AB 2066?
AB 2066 is sponsored by Jones.
What is the current status of AB 2066?
This bill died with 2009-2010 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track AB 2066?
Track AB 2066 free on One Click Politics — get push/email alerts when it moves.

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