AUSTIN, Texas (AP) _ Legislators are trying to rein in commissions paid to insurance agents who sell questionable or possibly bogus financial products to elderly Texans.
The industry, including representatives of the maligned insurance giant American International Group, is fighting increased regulation.
The Texas Senate State Affairs Committee could vote on the bill this week.
Sen. Rodney Ellis of Houston says it’s “disheartening” that representatives of AIG-affiliated companies are members of associations trying to kill his proposal for more oversight.
Jack Dolan with the American Council of Life Insurers says the Ellis bill would make annuities, which he calls “the only product that guarantees lifetime income,” less accessible to Texans.
The Texas Department of Insurance says more regulation is needed to stop companies from selling policies based on a bogus premise.
One 87-year-old woman told regulators she was duped into signing a 14-year annuity contract — meaning benefits wouldn’t kick in until she’s 101.