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THE PROBLEM: Unscrupulous salespeople are peddling inappropriate annuities to older consumers using unethical, aggressive tactics.

An annuity is an insurance product that is used as an investment. The interest paid on an annuity is usually higher than that of traditional investments, and there can be some tax benefits. However, annuities contracts are often as long as 10-20 years, making them inappropriate for older consumers. Large financial penalties and inaccessibility to funds can cause serious financial harm to those who are fooled into buying predatory annuities. 

THE SOLUTION: The Predatory Annuities Prevention Act. AARP is working with Senators Adler and Singer and Assemblywoman Greenstein to pass Senate Bill 1165 and Assembly Bill 2252, which would prevent aggressive and abusive sales practices of annuities salespeople.

The Predatory Annuities Prevention Act offers consumers four important tools:  

1.  Annuities salespeople will not be able to claim false titles like "Senior Financial Advisor" on their marketing materials. Unsubstantiated claims of expertise will result in loss of license for the salesperson.  
2.  Salespeople will be required to fill out a disclosure form to clearly lay out the important facts about the buyer and his/her investment objectives. This form, similar to those used in mortgage sales, will disclose important information so both the buyer and seller understand the terms of the contract. It will help consumers assess whether the product is actually a wise investment.
3.  A buyer will have 10 days to reconsider the purchase and a right to cancel within that time frame without financial penalty.
4.  A buyer will have the right to take legal action if the salesperson violates the law.

While annuities can be a responsible investment and most annuity salespeople are honest, the market is ripe for fraud. The Predatory Annuities Prevention Act will protect potential victims of unscrupulous salespeople forcefully peddling inappropriate annuities.

WRITE (see the sample letter printed below) or CALL (1-800-260-0130) your State Senator and State Assemblymembers today. Urge them to co-sponsor this bill. Share your story: 1-866-542-8165.
 
SAMPLE LETTER TO YOUR LEGISLATOR
(Please send us copies of any letters you receive in reply to your letter)

Dear Senator OR Assemblymember_________

I'm writing as a concerned constituent and reliable voter.  It has come to my attention that older New Jerseyans have been targeted by aggressive sales tactics of certain annuities salespeople.  Documented cases show people have lost tens of thousands of dollars from high-pressure sales tactics, misleading information and hidden fees.

I urge you to work with AARP and consider becoming sponsor of Senate Bill 1165/Assembly Bill 2252. This bill will prevent unscrupulous salespeople from cheating consumers. They will no longer be able to misrepresent themselves as "senior financial advisors." They will have to give consumers meaningful, accurate, easy-to-understand information as well as other consumer protections.

As your constituent and an AARP member, I ask for your leadership in this matter. Please become a co-sponsor of the bill.

Thank you for your attention.

Sincerely,

NAME & ADDRESS

PHONE NUMBER