Bill Text: TX HB1587 | 2023-2024 | 88th Legislature | Enrolled
Bill Title: Relating to the use by insurance companies of separate accounts in connection with life insurance and annuities and certain other benefits.
Spectrum: Bipartisan Bill
Status: (Passed) 2023-06-09 - Effective immediately [HB1587 Detail]
Download: Texas-2023-HB1587-Enrolled.html
| H.B. No. 1587 | ||
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| relating to the use by insurance companies of separate accounts in | ||
| connection with life insurance and annuities and certain other | ||
| benefits. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. The legislature declares that the intent of this | ||
| Act is to be consistent with: | ||
| (1) uniform laws of the various states in which the | ||
| approval of a separate account and of the investments and reserves | ||
| in a separate account is performed by the domiciliary state; and | ||
| (2) recent legislative enactments designed to | ||
| modernize insurance regulation by exempting certain large | ||
| commercial-type policy forms from regulatory filing and approval. | ||
| SECTION 2. Section 1152.055, Insurance Code, is amended to | ||
| read as follows: | ||
| Sec. 1152.055. GUARANTEED BENEFITS AND MONEY RESTRICTION | ||
| FOR SEPARATE ACCOUNTS. A domestic [ |
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| maintain a reserve for a benefit guaranteed as to dollar amount and | ||
| duration or funds guaranteed as to principal amount or stated rate | ||
| of interest in a separate account except with the commissioner's | ||
| approval and under conditions for investments, and other matters, | ||
| that recognize the guaranteed nature of the benefits provided and | ||
| that are prescribed by the department. | ||
| SECTION 3. Subchapter A, Chapter 1701, Insurance Code, is | ||
| amended by adding Section 1701.006 to read as follows: | ||
| Sec. 1701.006. EXEMPTION FOR CERTAIN GROUP ANNUITY | ||
| TRANSACTIONS. (a) The filing and approval requirements in this | ||
| chapter do not apply to any group annuity policy, certificate, or | ||
| contract written or issued by an insurer authorized to engage in the | ||
| business of insurance in this state that involves use of a separate | ||
| account if benefits would also have guarantees from an insurer's | ||
| general account. | ||
| (b) For purposes of this section, a group annuity policy, | ||
| certificate, or contract includes a single premium group annuity | ||
| policy, certificate, or contract that is negotiated between an | ||
| insurer and an applicable group or plan sponsor. | ||
| SECTION 4. This Act takes effect immediately if it receives | ||
| a vote of two-thirds of all the members elected to each house, as | ||
| provided by Section 39, Article III, Texas Constitution. If this | ||
| Act does not receive the vote necessary for immediate effect, this | ||
| Act takes effect September 1, 2023. | ||
| ______________________________ | ______________________________ | |
| President of the Senate | Speaker of the House | |
| I certify that H.B. No. 1587 was passed by the House on April | ||
| 28, 2023, by the following vote: Yeas 141, Nays 3, 2 present, not | ||
| voting. | ||
| ______________________________ | ||
| Chief Clerk of the House | ||
| I certify that H.B. No. 1587 was passed by the Senate on May | ||
| 17, 2023, by the following vote: Yeas 31, Nays 0. | ||
| ______________________________ | ||
| Secretary of the Senate | ||
| APPROVED: _____________________ | ||
| Date | ||
| _____________________ | ||
| Governor | ||
