Delaware House Bill 3 (Prior Session Legislation)

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Completed Legislative Action
Spectrum: Moderate Partisan Bill (Democrat 5-1)
Status: Passed on July 30 2021 - 100% progression
Action: 2021-07-30 - Signed by Governor
Text: Latest bill text (Draft #1) [HTML]

This Act incorporates recent changes adopted by the National Association of Insurance Commissioners to Model Law #805 Standard Nonforfeiture Law Individual Deferred Annuities that address the impact on annuity products by the current low interest rate environment. Generally speaking, the standard Nonforfeiture Law requires that an individual deferred annuity contract provide the contract holder with a paid-up annuity or cash surrender benefits of a minimum amount if the contract holder surrenders the policy (e.g. stops making payments) during the accumulation period. The nonforfeiture amount is the deferred annuitys accumulated value, minus certain charges (such as prior withdrawals and loans), based on interest rate minimums regulated by statute. Due to the COVID-19 pandemic, market interest rates have fallen so low as to render unrealistic the old statutory rates that insurance companies were required to use in determining the amount to return to contract holders. The NAIC has determined this threatens the availability of annuity products to consumers and, as such, adopted a change to the interest rate from 1% to 0.15%.

An Act To Amend Title 18 Of The Delaware Code Relating To Standard Nonforfeiture Law For Individual Deferred Annuities.

Rep. William Bush [D]	Sen. Spiros Mantzavinos [D]	Sen. Bruce Ennis [D]	Rep. Paul Baumbach [D]
Rep. Gerald Brady [D]	Rep. Michael Ramone [R]

2021-06-29 - Senate - Senate Third Reading (Y: 21 N: 0 NV: 0 Abs: 0) [PASS]
2021-03-30 - House - House Third Reading (Y: 41 N: 0 NV: 0 Abs: 0) [PASS]

Date	Chamber	Action
2021-07-30		Signed by Governor
2021-06-29		Passed By Senate. Votes: 21 YES
2021-04-28		Reported Out of Committee (Banking, Business & Insurance) in Senate with 1 Favorable, 4 On Its Merits
2021-03-30		Assigned to Banking, Business & Insurance Committee in Senate
2021-03-30		Passed By House. Votes: 41 YES
2021-03-26		Suspension of Rules in House
2021-03-16		Reported Out of Committee (Economic Development/Banking/Insurance & Commerce) in House with 3 Favorable, 6 On Its Merits
2021-03-04		Introduced and Assigned to Economic Development/Banking/Insurance & Commerce Committee in House

Type	Source
Summary	https://legis.delaware.gov/BillDetail?LegislationId=48416
Text	https://legis.delaware.gov/json/BillDetail/GenerateHtmlDocument?legislationId=48416&legislationTypeId=1&docTypeId=2&legislationName=HB3
Roll Call	https://legis.delaware.gov/json/RollCall/GetRollCallVoteByRollCallId#41883
Roll Call	https://legis.delaware.gov/json/RollCall/GetRollCallVoteByRollCallId#52615