Attachment III: Life Agent Disclosure
Requirement (AB2107, Chapter 547) (Continued)
Life Agent Financial Products Disclosure
Pursuant to Section 789.8 of the California Insurance Code, if a life agent offers to sell to an elder any life insurance or annuity product, the life agent shall advise an elder or elder's agent in writing that the sale or liquidation of any stock, bond, IRA, certificate of deposit, mutual fund, annuity, or other asset to fund the purchase of this product may have tax consequences, early withdrawal penalties, or other costs or penalties as a result of the sale or liquidation, and that the elder or elder's agent may wish to consult independent legal or financial advice before selling or liquidating any assets and prior to the purchase of any life or annuity products being solicited, offered for sale, or sold. This section does not apply to a credit life insurance product.
A life agent who offers for sale or sells a financial product to an elder on the basis of the product's treatment under the Medi-Cal program may not negligently misrepresent the treatment of any asset under the rules and regulations of the Medi-Cal program, as it pertains to the determination of the elder's eligibility for any program of public assistance.
A life agent who offers for sale or sells any financial product on the basis of its treatment under the Medi-Cal Program shall provide, in writing, the required disclosure.
BILL NUMBER: AB 2107 CHAPTERED
BILL TEXT
CHAPTER 442
FILED WITH SECRETARY OF STATE SEPT. 14, 2000
APPROVED BY GOVERNOR SEPT. 13, 2000
PASSED THE ASSEMBLY AUG. 29, 2000
PASSED THE SENATE AUG. 28, 2000
AMENDED IN SENATE AUG. 24, 2000
AMENDED IN SENATE AUG. 18, 2000
AMENDED IN SENATE AUG. 7, 2000
AMENDED IN ASSEMBLY MAY 31, 2000
AMENDED IN ASSEMBLY MAY 16, 2000
AMENDED IN ASSEMBLY APRIL 24, 2000
AMENDED IN ASSEMBLY APRIL 3, 2000
INTRODUCED BY Assembly Member Scott
(Co-Author: Assembly Member Jackson) FEB. 22, 2000
An act to add Section 6177 to the Business and Professions Code, and to amend and renumber Section 10193 of, to amend Section 10234.8 of, and to add Section 789.8 to, the Insurance Code, and to amend Section 15610.30 of the Welfare and Institutions Code, relating to elder abuse.
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