North Carolina Annuity News

New Washington State Law Defines Variable Annuities as Securities

Securities regulators in Washington state will for the first time be able to handle complaints from investors about variable annuities, under a law signed recently by Governor Gary Locke. The legislation (Senate Bill 6483), signed March 22, was unopposed by Washington lawmakers.

“This new law is good for investor protection and makes sense for consumers, particularly since most variable annuities are marketed as investments,” said Deborah Bortner, Director of Washington’s Securities Division.

Sales of variable products have increased dramatically over the past decade and the Securities and Exchange Commission (SEC) and the National Association of Securities Dealers Regulation, Inc. (NASDR) have both stepped-up regulatory scrutiny of variable products.  In particular, regulators worry that investors aren’t being told about steep surrender charges and the high sales commissions agents often earn when they move investors from annuity to annuity 

Contact a North Carolina annuity lawyer today and get a free consultation!

	Did You Know?
	Annuity tax-free exchanges, known as 1035 exchanges Section 1035 of the U.S. tax code allows you to exchange an existing variable annuity contract for a new annuity contract without paying any tax on the income and investment gains in your current variable annuity account. These tax-free exchanges, known as 1035 exchanges, can be useful if another annuity has features that you prefer, such as a larger death benefit, different annuity payout options, or a wider selection of investment choices.