Market conduct: Congress steps in for seniors

The proposal comes on the tail end of huge increases in the annuities market. According to the Insurance Information Institute, sales of fixed annuities increased 50 percent in 2008. Due to the economic downturn, seniors have been putting their money into life insurance products, often without fully understanding the consequences.

"The policyholder has to become an expert to ever get the message," said Joseph Belth, an insurance professor emeritus at the Indiana University Kelley School of Business. "In the case of some annuities, the people selling them do not understand them, let alone the people buying them."

Regardless of the mixed emotions involved, the future of the proposal looks bright: "The proposed tougher oversight of annuities is poised to make a big leap forward because it's hitching a ride on high-profile regulatory reform legislation — a top priority for the Obama administration," said Liberto.