SB 263 will protect consumers, including vulnerable seniors, from potential abuse and exploitation of harmful financial investment transactions by adopting the 2020 version of the National Association of Insurance Commissioners’ (NAIC) Suitability in Annuity Transactions Model Regulation (#275). This bill requires producers to put the consumer’s best interests ahead of their sales and to consider information they know or should have known about a consumer before making a recommendation. Insurance producers are also required to use a specified disclosure form for comparison of products offered to a consumer, and include information that provides disclosure of producer’s authority to sell the product, compensation, and producer’s relationship with the consumer. The producers are required to identify and eliminate any material conflicts, if possible.
Status: Re-referred to Committee on Insurance. Will be heard on 4/26/23.
Read the entire bill HERE.
For more information about SB 263, please see the Fact Sheet.