Senate Approves Corman Bill to Provide Protections for Consumers Purchasing Annuities

HARRISBURG — The State Senate this week approved legislation, sponsored by Senator Jake Corman (R-Bellefonte), that would protect consumers by more strictly regulating the purchase or exchange of an annuity based on recommendations made to them by insurers.

Corman said the goal of his legislation is to ensure that those selling annuities in Pennsylvania are making sure that the product is a good fit for the consumer based on their financial status, tax status and investment objectives.

“This is particularly important in these tough economic times, when people are making tough choices about investments – choices that have a major impact on their financial stability,” Corman said.

He noted that more than 30 states have adopted similar laws or regulations relating to annuities.

“Originally, the issue of annuity suitability focused upon protecting senior citizens,” Corman said. “But now it has evolved into providing protections for all consumers to ensure that they get the product that best fits their specific needs and goals.”

Tim Nyquist
Phone: (717) 787-1377