AMENDED IN SENIOR SENATE OCTOBER 16, 2006

SENIOR SENATE PROPOSAL NO. 16

INTRODUCED BY SENIOR SENATOR LUNDIN

(COAUTHOR: SENIOR ASSEMBLY MEMBER KROHN)

LEGISLATIVE COUNSEL’S DIGEST

SP 16: SENIOR FINANCIAL ABUSE.

EXISTING LAW REGULATES THE PROVISION OF INSURANCE,INCLUDING ANNUITIES, PROHIBITS SPECIFIED TYPES OF ADVERTISEMENTS, AND REQUIRES CERTAIN DISCLOSURES, IN ANNUITY SOLICITATIONS DIRECTED TOWARDS PEOPLE 65 YEARS OF AGE OR OLDER. EXISTING LAW PROVIDES THAT ANYONE ENGAGED IN THE TRANSACTION OF INSURANCE OWES A PROSPECTIVE INSURED WHO 1S65 YEARS OF AGE OR OLDER A DUTY OF GOOD FAITH AND FAIR DEALING. EXISTING LAW PROVIDES ENHANCED PENALTIES FOR VIOLATIONS OF SPECIFIED CRIMES, INCLUDING THEFT, EMBEZZLEMENT, AND FRAUD, IF THOSE CRIMES ARE COMMITTED AGAINST THE PROPERTY OF AN ELDER OR DEPENDENT ADULT.

THIS MEASURE WOULD MEMORIALIZE THE LEGISLATURE AND THE GOVERNOR TO ENACT LEGISLATION THAT WOULD PREVENT ANYONE FROM TARGETING AND ABUSING SENIOR CITIZENS BY ENCOURAGING THEM TO ENTER INTO BAD OR MARGINAL INVESTMENTS, AND THAT WOULD REQUIRE CASES OF FINANCIAL ABUSE OF SENIOR CITIZENS TO BE INVESTIGATED.

VOTE: MAJORITY.

SP 16: RELATING TO FINANCIAL ABUSE

WHEREAS, SENIOR CITIZENS ARE TARGETED BY UNSCRUPULOUS INDIVIDUALS AND ORGANIZATIONS FOR INVESTMENTS, INCLUDING ANNUITIES AND INSURANCE POLICIES, THAT ARE NOT ADVANTAGEOUS TO SENIOR CITIZENS; AND

WHEREAS, ANNUITIES HAVE HIGH COMMISSIONS AND SURRENDER CHARGES, AND TAX BENEFITS THAT MAY ONLY BE REALIZED AFTER DECADES, AND MAY CONTAIN OTHER TERMS THAT ARE UNFAIR TO SENIOR CITIZENS; NOW, THEREFORE, BE IT

RESOLVED, BY THE SENIOR SENATE AND THE SENIOR ASSEMBLY, JOINTLY, THAT THE SENIOR LEGISLATURE OF THE STATE OF CALIFORNIA AT ITS 2006 REGULAR SESSION, A MAJORITY OF THE MEMBERS VOTING THEREFOR, HEREBY PROPOSES THAT THE LAW BE STRENGTHENED TO PREVENT ANYONE, INCLUDING INSURANCE AGENTS AND FINANCIAL INSTITUTIONS, FROM TARGETING AND ABUSING SENIOR CITIZENS BY ENCOURAGING THEM TO ENTER INTO BAD OR MARGINAL INVESTMENTS, AND THAT CASES OF FINANCIAL ABUSE OF SENIOR CITIZENS BE INVESTIGATED; AND BE IT FURTHER

RESOLVED, THAT THE SENIOR LEGISLATURE OF THE STATE OF CALIFORNIA RESPECTFULLY MEMORIALIZES THE LEGISLATURE AND THE GOVERNOR OF THE STATE OF CALIFORNIA TO ENACT APPROPRIATE LEGISLATION THAT WOULD ADDRESS THE CONCERNS SET FORTH IN THIS MEASURE; AND BE IT FURTHER

RESOLVED, THAT A COPY OF THIS MEASURE BE TRANSMITTED TO THE SPEAKER OF THE ASSEMBLY, THE PRESIDENT PRO TEMPORE OF THE SENATE, AND THE GOVERNOR OF THE STATE OF CALIFORNIA.

RN20061899509

- 0 -