Producers may not sell individual annuities to seniors under any of the following circumstances:
- If the senior is buying the annuity to gain Medi-Cal eligibility, and the buyer's assets are equal to or less than the "community spouse resource allowance" established annually under the Medi-Cal Act, or if the senior would otherwise qualify for Medi-Cal.
- If the senior is buying the annuity to gain Medi-Cal eligibility and, after buying the annuity, the senior or the senior's spouse would not qualify for Medi-Cal.
If a fixed annuity is issued to a senior under the circumstances described above, the issuer will rescind the contract and refund to the purchaser all premiums, fees, costs and any interest earned.
