Governor signs annuities sales bill into law Friday

SACRAMENTO, Calif. – On Friday, Governor Newsom signed SB 263 into law which adds additional protections for people investing in annuities by making changes to the state's Insurance Code.

Senate Bill 263 would require insurance producers and companies to expand the suitability standards for the sale of annuities statewide.

“Today we put financial institutions on notice that we will hold them responsible for customers who are cheated out of their investments,” said State Senator Bill Dodd, the author of the new law. “When incidents of abuse and exploitation happen it is unacceptable. I thank the governor for signing this much-needed law that will require insurance agents to do what’s best for their clients. If they know an annuity is a bad fit, they will not be able to sell it.”

The new law was sponsored by California's Insurance Commissioner Ricardo Lara as well as the California Commission on Aging detail a press release from State Senator Dodd's Office.

“Gov. Newsom’s signing of SB 263 puts consumers’ best interests ahead of insurance company sales of annuities,” stated Insurance Commissioner Ricardo Lara. "This new law protects California seniors by requiring all sales of annuities be based first and foremost on the facts of their individual insurance needs, financial situation and goals. I commend Sen. Dodd for authoring this commonsense consumer protection law.”