Bill Text: TX SB1107 | 2015-2016 | 84th Legislature | Enrolled
Bill Title: Relating to contingent deferred annuity contracts.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2015-06-09 - Effective immediately [SB1107 Detail]
Download: Texas-2015-SB1107-Enrolled.html
S.B. No. 1107 |
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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; [ |
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(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. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 1107 passed the Senate on | ||
April 30, 2015, by the following vote: Yeas 31, Nays 0; and that | ||
the Senate concurred in House amendment on May 21, 2015, by the | ||
following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 1107 passed the House, with | ||
amendment, on May 15, 2015, by the following vote: Yeas 139, | ||
Nays 0, two present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |