Villager becomes public face of annuities bill

By DAVID R. CORDER

DAILY SUN

THE VILLAGES - So many stories exist behind a consumer bill winding its way through state Senate committees this legislative session.

One of those stories belongs to Elizabeth Williams.

In just a short period of time, the Village of Rio Ponderosa resident has become the public face of a bill aimed at protecting senior citizens from annuities fraud.

Earlier this week, Williams explained to the Tallahassee press corps how state regulators helped her recover an unsuitable annuities investment originally pitched to her about two years ago during a free, "no-risk" luncheon seminar.

"I think it was my duty to do that," Williams said of her willingness to speak publicly about the problem of senior annuities fraud. "I'm just a poor innocent person sitting here in The Villages not seeking any publicity whatsoever. I'm just one person."

But Williams' experience, and that of many other Florida senior citizens like her, explains why state Chief Financial Officer Alex Sink wants stiffer criminal penalties exacted from any annuities dealer who defrauds senior citizens.

Members of the Senate Banking and Insurance Committee earlier this week unanimously endorsed SB 1372, also known as the "Safeguard Our Seniors" bill.

The bill faces only two more committee reviews — Criminal Justice and Policy & Steering Committee on Ways and Means — before it could reach a final joint House and Senate vote.

Provisions in the bill propose the possibility of third-degree felony penalties for anyone convicted of annuities twisting or churning. Both practices now are subject to misdemeanor penalties.

Churning is the practice of misleading consumers into surrendering cash value of current annuities or life insurance policies for new ones with the same company, the state Department of Financial Services explained in one of its free consumer guides. Twisting is the practice of misleading consumers into surrendering the cash value for financial products with a different company.

Among other provisions, the bill would limit the annuity surrender charge period for a senior consumer to five years and the cost to 5 percent of the annuity. It also would extend the free-look period for the purchase of an annuity by a senior consumer from 14 to 60 days.

Still, Williams noted, the effort means nothing unless seniors report unscrupulous annuities activities.

"A lot of people are too embarrassed to try to do something about it," Williams said. "It's a shame, because you might feel foolish. Let's face it. At 75 and 80, sometimes we're not as sharp as we used to be."

David R. Corder is a reporter with the Daily Sun. He can be reached at 753-1119, ext. 9066, or at david.corder@thevillagesmedia.com.