SENIOR SENATE PROPOSAL NO. 11

INTRODUCED BY SENIOR SENATOR LUNDIN

LEGISLATIVE COUNSEL'S DIGEST

SP 11: SENIOR FINANCIAL ABUSE.

EXISTING LAW GENERALLY REGULATES THE SALE OF INSURANCE, INCLUDING ANNUITY PRODUCTS. EXISTING LAW IMPOSES CERTAIN RESTRICTIONS ON THE SALE OF LIFE INSURANCE POLICIES AND ANNUITIES AT THE HOME OF A SENIOR CITIZEN, AND PROHIBITS THE SALE OF AN ANNUITY TO A SENIOR CITIZEN IN SPECIFIED CIRCUMSTANCES.

THIS MEASURE WOULD MEMORIALIZE THE LEGISLATURE AND THE GOVERNOR TO ENACT LEGISLATION THAT WOULD PREVENT FINANCIAL INSTITUTIONS FROM TARGETING AND ABUSING SENIOR CITIZENS, THAT PARTICULAR ATTENTION BE PAID TO VARIABLE OR FIXED ANNUITY SALES TO PREVENT SENIOR CITIZENS FROM ENTERING INTO BAD OR MARGINAL INVESTMENTS, THAT INFORMATIONAL PAMPHLETS RELATING TO ANNUITIES BE DEVELOPED BY THE STATE, AND THAT CASES OF FINANCIAL ABUSE OF SENIOR CITIZENS BY FINANCIAL INSTITUTIONS BE INVESTIGATED.

VOTE: MAJORITY.

SP 11: RELATING TO FINANCIAL ABUSE

WHEREAS, SENIOR CITIZENS ARE TARGETED BY FINANCIAL INSTITUTIONS FOR DIFFERENT TYPES OF INVESTMENTS, INCLUDING VARIABLE OR FIXED ANNUITIES WITH INSURANCE POLICIES, THAT ARE NOT ADVANTAGEOUS TO SENIOR CITIZENS; AND

WHEREAS, ANNUITIES HAVE HIGH COMMISSIONS BUILT IN, HIGH SURRENDER CHARGES, TAX BENEFITS THAT MAY BE REALIZED ONLY AFTER DECADES, AND FAKE BONUSES THAT REDUCE THE AMOUNT OF THE INVESTMENT; 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 2008 REGULAR SESSION, A MAJORITY OF THE MEMBERS VOTING THEREFOR, HEREBY PROPOSES THAT FINANCIAL INSTITUTIONS BE PREVENTED FROM TARGETING AND ABUSING SENIOR CITIZENS, THAT PARTICULAR ATTENTION BE PAID TO VARIABLE OR FIXED ANNUITY SALES TO PREVENT SENIOR CITIZENS FROM ENTERING INTO BAD OR MARGINAL INVESTMENTS, THAT INFORMATIONAL PAMPHLETS RELATING TO ANNUITIES BE DEVELOPED BY THE STATE, AND THAT CASES OF FINANCIAL ABUSE OF SENIOR CITIZENS BY FINANCIAL INSTITUTIONS 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 PRESIDENT PRO TEMPORE OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, AND THE GOVERNOR OF THE STATE OF CALIFORNIA.

RN 08 22029

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