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Annuity Watch

Texas Gov vetos extra protection for seniors purchasing annuities

Citing the possibility of frivolous lawsuits, Texas Governor Rick Perry vetoed H.B. 1293. The bill -- passed unanimously by both the Texas House and Senate -- would have provided additional consumer protections for annuity purchasers. This doesn't seem a contentious bill, as it was supported by both insurance groups and consumer advocacy groups, causing some question the decision. From the Dallas Morning News:

Consumer leaders suggested that anti-lawsuit groups were behind the veto, but none testified against the legislation.

I'm all for reducing the chance of needless lawsuits, but not at the expense of consumers. Especially when those consumers are seniors approaching retirement that need additional protections. The AARP backed this bill. The Texas Association of Life and Health Insurers backed this bill. The American Council of Life Insurers backed the bill. The Texas Department of Insurance backed the bill. It passed the House and Senate of Texas unanimously. 

Of course, gubernatorial vetoes can be overturned. And it seems like there's enough support in the House and Senate to make that happen. We'll keep our eyes on this one.