The Georgia insurance commission has adoped new regulations that promise to protect consumers who buy annuity products.
Insurance Commissioner John W. Oxendine said an insurer or agent must have reasonable grounds for believing the recommended product is suitable for the consumer, based on the buyer’s investments, financial situation, and other insurance coverage, if any.
“There have been complaints about annuities being sold that were inappropriate for the purchaser,” Oxendine said. “These regulations specifically address that issue, forcing insurers to gather certain financial information on a client and to take that information into account before offering him or her a particular product.”
If a consumer feels that the regulation has been violate, the commissioner will have the authority to order corrective action.
Insurers and/or agents will also be required to maintain a compliance system and keep the information needed to make recommendations to the purchaser for 10 years.
The regulation becomes effective Jan. 1, 2007. To view or download the new regulations, visit www.gainsurance.org.
Source: www.gainsurance.org
Topics Legislation Georgia
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