Statement from Commissioner Kevin McCarty on the Passage of HB 1065 Out of the House of Representatives
TALLAHASSEE, Fla. – Insurance Commissioner Kevin McCarty today issued the following statement:
“I commend Representative Broxson for sponsoring HB 1065, and the members of the House of Representatives who voted in favor of this important bill. I hope Florida becomes the 20th state to pass this model legislation aimed at strengthening annuity protections for consumers and helping both consumers and the industry by increasing regulatory uniformity among states.”
In 2003, the National Association of Insurance Commissioners (NAIC) adopted the “Senior Protection in Annuity Transactions Model Regulation” (Model Regulation), which was created to help protect senior citizens when they purchase or exchange annuity products. The Florida Legislature adopted the NAIC’s original Model Regulation in 2004 and amended it in both 2008 and 2010 to add additional safeguards for consumers.
The NAIC revised its Model Regulation again in March 2010; the latest changes in the model law provide annuity protections for consumers of any age, requires insurer reviews of every annuity transaction, and clarifies that insurers are responsible for compliance with annuity protection provisions -- even when insurers contract with third parties. Furthermore, it preserves the senior suitability protections already provided for in Florida law.
If enacted by the Florida Legislature and signed by the Governor, Florida will become the 20th state to pass this important model law.