Senior Consumer Protections

Seniors receive enhanced protections due to vulnerability to unsuitable sales, fraud, and cognitive decline. Massachusetts and federal laws provide additional safeguards.

Enhanced Suitability Requirements

Annuity sales to seniors:

Must determine: - Financial situation - Financial needs and objectives - Age and time horizon - Liquidity needs - Risk tolerance - Tax status - Existing assets

Documentation required: - Suitability worksheet - Basis for recommendation - Customer acknowledgment - Supervisory review

Replacement Protections

Additional requirements for seniors:

Enhanced disclosure: - Comparison of benefits - Surrender charges - Loss of benefits - Tax consequences - Cost analysis

Extended free look: - 30 days (vs. 10 days) - For ages 65+ - Federal requirement - Full refund

Do not cancel old policy: - Until free look expires - Coverage confirmed - All questions answered

Prohibited Practices

Targeting seniors: - High-pressure tactics - Scare tactics - Urgency without cause - Complex products unsuitable - Excessive fees - Unsuitable liquidity restrictions

Senior-specific abuse: - Exploiting cognitive decline - Undue influence - Taking advantage of isolation - Misrepresenting guarantees

Training Requirements

Agents selling to seniors: - Product-specific training - Senior-specific training - Suitability standards - Ethics training - Continuing education

Reporting Requirements

Suspected abuse: - Report to authorities - Elder abuse hotlines - State insurance department - Adult protective services

Key Exam Concepts

• Enhanced suitability: Extra requirements for annuity sales to seniors
• 30-day free look: For seniors 65+ (federal requirement)
• Replacement protections: Enhanced disclosure, extended free look
• Prohibited practices: High-pressure, unsuitable products, exploitation
• Training required: Product-specific and senior-specific training
• Report abuse: Suspected elder abuse must be reported