NU Online News Service, July 5, 11:10 a.m. – The California Department of Insurance says life insurance agents should do their best to comply with A.B. 2107, a new consumer protection law for older state residents, while it is developing the regulations needed to implement the law.
The law took effect July 1.
One section requires life agents to warn older consumers in writing about the risks of liquidating assets such as bonds and certificates of deposit to pay for new life insurance and annuity products.
Life agents are supposed to mention the possibility that liquidating existing assets could lead to early withdrawal penalties and extra tax bills, and suggest that older consumers talk to independent financial or legal advisors before trading existing assets in for new life or annuity products.
