Bill Text: TX SB381 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to partial surrender of or withdrawals from annuity contracts, life insurance policies, and endowment contracts.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2011-03-07 - Left pending in committee [SB381 Detail]
Download: Texas-2011-SB381-Introduced.html
| 82R1635 AJA-F | ||
| By: Wentworth | S.B. No. 381 | |
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| relating to partial surrender of or withdrawals from annuity | ||
| contracts, life insurance policies, and endowment contracts. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Chapter 1113, Insurance Code, is amended by | ||
| adding Section 1113.002 to read as follows: | ||
| Sec. 1113.002. PARTIAL SURRENDER OR WITHDRAWAL. (a) A | ||
| partial surrender of or withdrawal from an annuity contract or a | ||
| partial surrender or withdrawal of all or part of the cash surrender | ||
| value of a life insurance policy or endowment contract may not be | ||
| made unless, at minimum: | ||
| (1) an owner of the contract or policy requests the | ||
| withdrawal in a writing that is: | ||
| (A) signed by the owner or each joint owner; | ||
| (B) notarized; and | ||
| (C) delivered to: | ||
| (i) the agent who sold the contract or | ||
| policy; | ||
| (ii) a representative of the issuer of the | ||
| contract or policy at an office of the issuer located in the city or | ||
| county where the owner resides; or | ||
| (iii) if the issuer does not have a local | ||
| office and the agent who sold the contract or policy is no longer an | ||
| agent for the issuer, the agent of record for the contract or | ||
| policy; and | ||
| (2) the agent or representative who receives the | ||
| request delivered under Subdivision (1): | ||
| (A) provides the information required by | ||
| Subsection (b); | ||
| (B) signs the request; and | ||
| (C) forwards the request to the appropriate | ||
| office of the issuer of the contract or policy for processing the | ||
| request. | ||
| (b) An agent or representative who receives a request that | ||
| is subject to this section must provide the requestor with accurate | ||
| information concerning the consequences of the requested surrender | ||
| or withdrawal, including any tax penalties the owner may incur. | ||
| (c) Except as provided by this section or other law or as | ||
| specifically requested by the owner of the annuity contract, life | ||
| insurance policy, or endowment contract, the issuer of the contract | ||
| or policy may not delay or otherwise impede a surrender or | ||
| withdrawal that is subject to this section, including by attempting | ||
| to persuade the owner to redirect the proceeds of the surrender or | ||
| withdrawal into another product marketed by the issuer. | ||
| (d) The issuer of an annuity contract, life insurance | ||
| policy, or endowment contract may impose additional requirements on | ||
| a request for a partial surrender of or withdrawal from the contract | ||
| or policy, including requiring the signature of the spouse of the | ||
| owner, a beneficiary, or an assignee. | ||
| SECTION 2. Except as specifically provided by a conflicting | ||
| provision of an annuity contract, life insurance policy, or | ||
| endowment contract delivered or issued for delivery before the | ||
| effective date of this Act, the change in law made by this Act | ||
| applies to an annuity contract, life insurance policy, or endowment | ||
| contract delivered or issued for delivery before, on, or after the | ||
| effective date of this Act. | ||
| SECTION 3. This Act takes effect September 1, 2011. | ||
