Insurance

The state of Florida is considering legislation that would impose third degree felony charges and a maximum of five years in prison for insurance agents who provide misleading annuity representations ("twisting") and inappropriate policy surrenders or withdrawals (" churning "). "Under the bill, which would apply to sales in Florida to people over 65, the surrender periods — or the length of time an investor must keep an annuity — would be set at a maximum of five years. The surrender fee — or...

Even with life and annuity insurers struggling, consumers should think twice and seek sound advice before selling an existing annuity. "Should consumers be worried by declining financial-strength ratings of insurance companies that issue their life policies and annuity contracts? Experts say lowered strength ratings are cause for concern. But they warn that rash action -- like dumping your annuity without doing your homework first -- may subject you to big problems." Source: Wall Street Journal...

Currrent annuity owners and prospective purchasers need to keep an eye on the financial ratings of annuity providers. "While the biggest financial headlines over the past few months have focused on bailing out banks and other businesses with taxpayer money, many owners of annuities and life insurance are following another rescue attempt, with some bewilderment: efforts by insurers to get tens of billions of dollars in relief from state insurance regulators. The proliferation of relief efforts...

Barclays and other large asset managers roll-out sophisticated defined contribution plans that have annuity options built into the plans. Employers, however, have been slow to adopt the new programs. If you're approaching retirement right now, there's no easy fix for your portfolio. But if you are in midcareer, you may soon have a chance to structure your 401(k) in a much different way. A dozen or so asset managers and insurers, including AllianceBernstein, AXA, Barclays Global Investors, John...