The New Year marks the beginning of tougher penalties for fraudulent annuity practices in Florida, as an effort to target agents using predatory annuity practices goes into law.

The new legislation makes it a third degree felony to submit a fraudulent signature, prohibits agents from using fake designations to falsely imply financial expertise, and clarifies and strengthens suitability requirements that agents must meet when selling an annuity to a consumer.

"This legislation represents a good first step," said Florida Chief Financial Officer Alex Sink. "We were able to increase protections for seniors and punish agents who commit financially devastating crimes. That said, I will continue to push for it to be a felony to intentionally deceive a senior into an inappropriate annuity product. And I'm not going to rest until we're able to put unscrupulous agents that prey on our seniors behind bars."

As part of the new law, agents licensed in Florida must take a minimum of three hours of continuing education on the subject of suitability in annuity and life insurance transactions. It also imposes fine maximums of $30,000 for each "willful violation of twisting, churning and submission of fraudulent signatures."

Originally published in Retirement Income Reporter.