Bill Text: TX HB2586 | 2015-2016 | 84th Legislature | Comm Sub


Bill Title: Relating to contingent deferred annuity contracts.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2015-05-15 - Laid on the table subject to call [HB2586 Detail]

Download: Texas-2015-HB2586-Comm_Sub.html
  84R24070 SCL-F
 
  By: Smithee H.B. No. 2586
 
  Substitute the following for H.B. No. 2586:
 
  By:  Sheets C.S.H.B. No. 2586
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to contingent deferred annuity contracts.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 1107.002(a), Insurance Code, is amended
  to read as follows:
         (a)  This chapter does not apply to:
               (1)  a reinsurance contract;
               (2)  a group annuity contract that is purchased under a
  retirement plan or plan of deferred compensation established or
  maintained by an employer, including a partnership or sole
  proprietorship, by an employee organization, or by both, other than
  a plan that provides individual retirement accounts or individual
  retirement annuities under Section 408, Internal Revenue Code of
  1986, as amended;
               (3)  a premium deposit fund;
               (4)  a variable annuity contract;
               (5)  an investment annuity contract;
               (6)  an immediate annuity contract;
               (7)  a deferred annuity contract under which annuity
  payments have begun; [or]
               (8)  a reversionary annuity contract; or
               (9)  a contingent deferred annuity contract as defined
  by Section 1116.003.
         SECTION 2.  Chapter 1116, Insurance Code, is amended by
  adding Section 1116.003 to read as follows:
         Sec. 1116.003.  RULEMAKING AUTHORITY FOR CONTINGENT
  DEFERRED ANNUITY CONTRACTS. (a) In this section, "contingent
  deferred annuity contract" means an annuity contract in which a
  life insurer makes periodic payments for the annuitant's lifetime
  beginning when a designated investment that is not owned or held by
  the insurer is depleted to an amount specified by the contract due
  to contractually permitted withdrawals, market performance, fees,
  or other charges.
         (b)  The commissioner by rule may adopt reasonable standards
  for contingent deferred annuity contracts, including standards
  for:
               (1)  the procedures for department review and approval
  of contingent deferred annuity contracts and the criteria the
  department will use in approving the contracts;
               (2)  replacement, suitability, and disclosure
  requirements that are consistent with applicable model regulations
  developed by the National Association of Insurance Commissioners;
  and
               (3)  advertising of contingent deferred annuity
  contracts that are consistent with applicable model regulations
  developed by the National Association of Insurance Commissioners.
         SECTION 3.  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, 2015.
feedback