TBO.com - TBO is Tampa Bay Online

Targeting Agents Who Trick Seniors

ADVERTISEMENT

The Tampa Tribune

Published: May 10, 2008

Florida has its share of unscrupulous insurance agents who have been talking retirees into bad deals. One popular tactic is to sell a long-term annuity to very old customers who shouldn't be tying up their money for so long.

A bill passed by the Legislature would tighten rules and boost penalties to better protect the state's seniors. Gov. Charlie Crist should sign it.

Sen. Mike Bennett of Bradenton named the bill for a couple from Venice. They're in their 80s and were sold an annuity that came with a big fee if they converted it to cash within 15 years.

An annuity pays regular, guaranteed dividends, but it is not an appropriate investment for everyone. Among other things, agents should not tie up all of customer's money, including emergency cash. The new law will add transparency to the sale of these policies and reduce, but not eliminate, abuses.

Florida Chief Financial Officer Alex Sink advocated a tougher bill.

"I'm disappointed that we were unable to make it a felony to intentionally deceive a senior in an inappropriate annuity product," she announced.

But she is right that the bill is an improvement.

Anyone considering buying additional insurance or an annuity should make sure they understand the details of the deal. One popular ruse is to offer an additional life insurance policy that appears free but is paid for by draining the value from or cashing in an existing policy.

Sink is right that the worst abuses are the same as thievery and that the guilty agents deserve time behind bars.

Share this:

Loading Comments...

Email Print

ADVERTISEMENT