New Florida Annuity Law Limits Surrender Charges, Affects Annexus Products

  • Originally published December 20, 2010 , last updated December 31, 2015
  • Annexus
New Florida Annuity Law Limits Surrender Charges, Affects Annexus Products

FL S 2176 goes into effect in the state of Florida on January 1, 2011. The new law limits surrender charges on the annuity products insurance carriers can issue to “Senior consumers,” defined as individuals age 65 and older (unless they are an “Accredited Investor” — see definition below).

As a result of this new law, the BalancedAllocation Annuity 12 will no longer be available in Florida to non-accredited consumers age 65 and older.

The BalancedAllocation Annuity 8 will still be available to everyone, but the Family Endowment Rider with Premium Bonus rider will not be available in Florida for non-accredited consumers age 65 and older.

In response to the new law, Annexus has filed the BalancedAllocation Annuity 10 in Florida to take the place of the 12-year product. They expect an expedited approval process, making the product available in January.

Click here for deadlines on when your BAA 12 business needs to be submitted to SMS.

What Is an Accredited Investor?

Accredited investors will be able to buy any product regardless of their age, if they can certify they meet at least one of the following criteria:

  • The applicant’s net worth (either individually or with their spouse, if any) exceeds $1 million at the time of application
  • The applicant’s individual annual income is in excess of $200,000 in each of the two most recent years, and expected to be at this level in the current year
  • The applicant’s annual income, jointly with applicant’s spouse, is in excess of $300,000 in each of the two most recent years, and expected to be at this level in the current year

Click here to see additional producer conduct rules enacted by the new law.