California Makes an Annuity Best Practice a Law

July 27, 2015 by Linda Koco

The California legislature has passed, and the governor has signed, a new fixed annuity law that essentially codifies a surrender charge practice that most annuity carriers have followed as a matter of everyday practice—or a “current best practice,” as Insurance Commissioner Dave Jones has put it.

The measure, Senate Bill 426 (Leyva), requires that, when fixed deferred annuities are issued to consumers age 65 or older, the death benefit must at least equal the annuity amount or the accumulation value.

In addition, it prohibits fixed deferred annuity companies from charging a surrender penalty on the death benefit payment. Click here to read…

Originally Posted at InsuranceNewsNet on July 23, 2015 by Linda Koco.