The rulemaking will replace current forms and provide a timeframe for insurers and agents to comply with a request for records from the department.

 

DEPARTMENT OF FINANCIAL SERVICES

Division of Insurance Agent and Agency Services

RULE NO.:RULE TITLE:

69B-162.011Suitability and Disclosure in Annuity Investments - Forms Required

PURPOSE AND EFFECT: The rulemaking will replace current forms and provide a timeframe for insurers and agents to comply with a request for records from the department.

SUMMARY: The proposed rulemaking will implement chapter 2023-130, Laws of Florida, regarding changes to section 627.4554, Florida Statutes. The changes will protect the best interest of the consumer regarding the sale of annuities in the state of Florida by requiring the agent to provide disclosure forms about the annuities.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:

The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the Agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: The Department’s economic review for this rulemaking.

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 624.308, 627.4554 FS.

LAW IMPLEMENTED: 627.4554 FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN THE FAR.

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Susan Jordan, [phone], or [e-mail].

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

Substantial rewording of Rule 69B-162.011 follows. See Florida Administrative Code for present text.

69B-162.011 Suitability in Annuity Transactions – Forms Required.

(1) Pursuant to section 627.4554, Florida Statutes (F.S.), the following forms are incorporated by reference and available from  the Office of Insurance Regulation of the Financial Services Commission’s website at https://floir.com/life-health/annuities:

(a) Appendix A - Insurance Agent (Producer) Disclosure for Annuities, DFS-H1-1990, effective MM/YY, which is also available at http://www.flrules.org/Gateway/reference.asp?No=Ref-_____;

(b) Appendix B - Consumer Refusal to Provide Information, DFS- H1-1991, effective MM/YY, which is also available at http://www.flrules.org/Gateway/reference.asp?No=Ref-_____; and

(c) Appendix C - Consumer Decision to Purchase an Annuity Not Based on a Recommendation, DFS-H1-1992, effective MM/YY, which is also available at http://www.flrules.org/Gateway/reference.asp?No=Ref-_____.

(2) Pursuant to section 627.4554, F.S., upon written request for records by the department, an insurer or agent must:

(a) acknowledge receipt of such request in writing to the requestor, indicating the date the request was received, within seven (7) calendar days of receipt of such request; and

(b) provide a copy to the requestor of any records requested within 14 calendar days after receipt of such request.

Rulemaking Authority 624.308(1), 627.4554(9) FS. Law Implemented 627.4554 FS. History–New 12-25-09, Amended 10-21-14; _____.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Ray Wenger, Chief, Bureau of Investigation

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Jimmy Patronis, Chief Financial Officer

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: February 28, 2024

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: October 25, 2023