The state of Florida is considering legislation that would impose third degree felony charges and a maximum of five years in prison for insurance agents who provide misleading annuity representations ("twisting") and inappropriate policy surrenders or withdrawals ("churning").
"Under the bill, which would apply to sales in Florida to people over 65, the surrender periods — or the length of time an investor must keep an annuity — would be set at a maximum of five years. The surrender fee — or what investors are charged for early withdrawal from the product — would be set at a maximum of 5% and would be lowered to 0% by the end of the fifth policy year. That could take a bite out of sales commissions, agents fear."
Source: Investment News
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