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ANNUITY WIRES

Legislators Sponsor Anti-Annuity Fraud Law

Florida's state Sen. Mike Bennett, R-Bradenton, and state Rep. Keith Fitzgerald, D-Sarasota, have introduced legislation that would impose tougher penalties on insurance agents who engage in deceptive annuity sales practices.

Under the proposed legislation, the act of "twisting," or submitting fraudulent signatures on an annuity being sold to a senior citizen, would be classified as third-degree felony. Twisting occurs when an insurance agent intentionally and falsely inflates clients' net worth and converts their annuities into a single policy with a separate company in order to generate a commission.


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