Calif. Commissioner Backs Signing of Legislation to Fight Financial Abuse

California Insurance Commissioner John Garamendi released the following statement following Gov. Arnold Schwarzenegger’s signing of legislation to protect consumers, especially seniors, from financial abuse in the sale of life insurance and annuities:

“I have fought to protect consumers from all forms of financial abuse. Therefore, I am pleased at the passage of AB 2316, which will provide much needed funds to bolster the Department of Insurance’s investigation of life insurance and annuities financial abuse,” Garamendi commented. “It will also provide important education to consumers that will help them avoid becoming a victim.

“Today, seniors are particularly vulnerable to financial abuse in the sale of life and annuities. This Department received 1,400 complaints of senior financial abuse in 2003 concerning some $30.2 million in monetary losses they suffered. Assemblymember Wilma Chan’s important legislation will help put an end to that kind of fraud. I commend her for her vision and dedication to protect the financial health of consumers.”