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Florida Annuities Fraud Law... A Sign of Things To Come Elsewhere?

By John Darer

Florida's annuities fraud law, an amendment to Florida Statute 627.4554 "Annuity Investments By Seniors" went into effect January 1, 2009.

In addition to new suitability standards, one of its provisions could easily apply to insurance agents and brokers or settlement planners selling structured settlement annuities to seniors.

Unlawful or deceptive use of designations F.S. 626.9541 (1)(ff) which states

Unlawfully using designations or misrepresenting the agent qualifications is made an unfair or

deceptive act or method of competition, as prohibited by the bill in s. 626.9541(1)(ff), F.S., as

follows:

? When making a sales presentation or solicitation for insurance, a licensee is prohibited

from utilizing designations or titles that falsely imply that the licensee has special

financial knowledge or has obtained specialized financial training or is certified or

qualified to provide specialized financial advice to senior citizens.

? Terms such as ?financial advisor? may not be used to falsely imply the licensee is

licensed or qualified to discuss, sell, or recommend financial products other than

insurance products.

? When making a sales presentation or solicitation for insurance, a licensee is prohibited

from falsely implying he or she is qualified to discuss, recommend, or sell securities or

other investment products in addition to insurance products.

Fines for unfair trade practices $5,000 for each non-willful vilation up to an aggregate $20,000 fine AND $30,000 for each willful violation up to an aggregate of $150,000!

Read CFO Sink Warns Annuity Fraudsters: Tougher Laws Now On The Books"

This author has already written about the number of people in the structured settlement industry who "innocently" pass off a 4 day course and exam in South Bend Indiana as if they matriculated at the University at Notre Dame. The Certified Structured Settlement Consultants professional designation is of course a program offered by the National Structured SettlementsTrade Association in conjunction with the Executive Program at University of Notre Dame.

This author has also written about one Houston based settlement consultant who persistently lists a trade association acronym as a professional designation. see "Truth in Structured Settlement Advertising, SSP is NOT a Professional Designation"

This author has written about a structured settlement general agency which used a non existent designation to promote its agents. Click here

Recently this author became aware of an affidavit submitted to a Court in Bronx County New York by John T. Bair of Forge Consulting, LLC in Buffalo, NY. Download John T. Bair Structure Broker's Affidavit Excerpt

In a statement made under oath, Bair attests:

1. that he is a "Certified Specialist". How important sounding and vague! A Google search of Certified Specialist comes up with the following: The Certified Specialist Program recognizes members of the Law Society of Upper Canada who have met established standards of experience and knowledge requirements in one or more designated areas of law and have maintained exemplary standards of professional practice. Show me the paper!

2. that he limits his practice to tax issues arising in personal injury litigation. Is Bair a CPA or a tax attorney? 

3. that he advises injured plaintiffs of their rights pursuant to a non existent act of Congress.

4. falsely, that structured settlements have "an inherent absolute protection for the minor"

5. falsely, that a traditional structured settlement is the only mechanism that prevents the minor from cashing in on the entire settlement upon reaching the age of majority.

Is this what it means on the Forge Consulting website when it says that "John's accreditation and expertise are virtually unparalleled"?

Many tort victims are seniors and those that aren't often possess some of the same vulnerabilities as seniors. They deserve no less protection.

Full post as published by Structured Settlements 4Real on February 13, 2009 (boomark / email).