California adds a longer free look for seniors, a best-interest standard for annuity sales, and a guaranty association that backs contracts up to set limits.
Quick answer: California gives annuity buyers age 60 or older at least 30 days to return a new contract, and since January 1, 2025, annuity recommendations must meet a best-interest standard. If an insurer fails, the California Life and Health Insurance Guarantee Association protects 80% of an annuity’s present value, up to $250,000.
If you’re 60 or older, you have at least 30 days to return a new individual annuity for a refund. For variable annuities invested in subaccounts, the refund can be the account value.
Since January 1, 2025, annuity recommendations in California must meet a best-interest standard, and agents complete annuity training before each license renewal.
If an insurer fails, California’s guarantee association covers 80% of an annuity’s present value, up to $250,000, with a $300,000 cap per person across life and annuities.
| Protection | California rule | What it means |
|---|---|---|
| Free look | At least 30 days if 60 or older | Time to review and return a new contract |
| Sales standard | Best interest, since January 1, 2025 | Recommendations must be in your best interest |
| Agent training | 8 hours before selling, 4 hours each renewal | Agents keep annuity knowledge current |
| Guaranty coverage | 80% of present value, up to $250,000 | A backstop if an insurer becomes insolvent |
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At least 30 days if you’re 60 or older when you buy. Returning a non-variable annuity in that window gets you a refund of all premiums and fees. For a variable annuity with premium invested in subaccounts, the refund is the account value, which may be less than you paid.
Under SB 263, which took effect January 1, 2025, annuity recommendations in California must meet a best-interest standard. New agents also complete an eight-hour annuity course before selling, and all life agents complete a four-hour annuity course before each license renewal.
The California Life and Health Insurance Guarantee Association steps in for covered contracts. It protects 80% of an annuity’s present value, up to $250,000, and caps total life and annuity protection at $300,000 per person. Coverage applies only when an insurer is declared insolvent.
No. Annuities are insurance contracts, not bank deposits, so they aren’t FDIC insured, even when sold at a bank. The backstop is the guarantee association, with limits that apply per person. Checking an insurer’s financial strength ratings before buying adds another layer of review.
Fixed and fixed indexed annuities are regulated by the California Department of Insurance, which licenses the agents who sell them and takes consumer complaints. Its Consumer Assistance Hotline is 1-800-927-4357. Variable annuities are also securities and are regulated federally as well.
One of our licensed agents can compare fixed, indexed, and income annuities and walk you through the free look and guaranty limits.
Annuities are insurance products, not bank deposits, and are not FDIC insured. Guarantees are backed by the financial strength and claims-paying ability of the issuing insurer. Guarantee association coverage is subject to limits and conditions. Surrender charges may apply. We do not provide tax or legal advice.
