New Jersey Legislature Passes Predatory Annuities Prevention Act
By: States: New Jersey | Source: AARP.org
The New Jersey Legislature unanimously passed the Predatory Annuities Prevention Act. Senator John H. Adler (D-6), Senator Robert W. Singer (R-30), and Assemblywoman Linda R. Greenstein (D-14) sponsored the bill.
The Predatory Annuities Prevention Act will protect annuities customers through three major provisions. First, annuity salespeople will not be able to claim false titles of senior financial expertise on their marketing materials. Secondly, annuity salespeople will be required to fill out a disclosure form to clearly lay out the terms and agreements of a customer’s investment. Finally, the Bill provides consumers with a 10-day right to cancel period, during which an annuity can be cancelled free of financial charges.
Some AARP members have encountered annuities salespeople who have used false titles and pressured them to make hasty decisions without proper documentation or outside consultation.
Kathleen Statue relates the story of how her mother, an AARP member, was pressured into investing in an annuity.
“The salesperson spent hours in my mom’s home, convincing her through false promises to reinvest her savings into an inappropriate annuity, says Statue. “Had the law been in place, my mom would have been protected.”
The Predatory Annuities Prevention Act is one of the most comprehensive state consumer protection bills relating to annuities in the nation, according to industry lobbyists. AARP worked hard for the passage of this important bill. The bill awaits the Governor’s signature in order to become law.
Call the Predatory Annuities Prevention Hotline at 1-800-260-0130 and urge Governor Corzine to sign the Predatory Annuities Prevention Act.
The Predatory Annuities Prevention Act will protect annuities customers through three major provisions. First, annuity salespeople will not be able to claim false titles of senior financial expertise on their marketing materials. Secondly, annuity salespeople will be required to fill out a disclosure form to clearly lay out the terms and agreements of a customer’s investment. Finally, the Bill provides consumers with a 10-day right to cancel period, during which an annuity can be cancelled free of financial charges.
Some AARP members have encountered annuities salespeople who have used false titles and pressured them to make hasty decisions without proper documentation or outside consultation.
Kathleen Statue relates the story of how her mother, an AARP member, was pressured into investing in an annuity.
“The salesperson spent hours in my mom’s home, convincing her through false promises to reinvest her savings into an inappropriate annuity, says Statue. “Had the law been in place, my mom would have been protected.”
The Predatory Annuities Prevention Act is one of the most comprehensive state consumer protection bills relating to annuities in the nation, according to industry lobbyists. AARP worked hard for the passage of this important bill. The bill awaits the Governor’s signature in order to become law.
Call the Predatory Annuities Prevention Hotline at 1-800-260-0130 and urge Governor Corzine to sign the Predatory Annuities Prevention Act.
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