Life insurance and annuities; modifying calculation of certain interest rate. Effective date.
Impact
The implications of SB529 on state laws are significant, as it mandates changes to the interest rate calculation related to life insurance policies. The bill stipulates that minimum nonforfeiture amounts must adhere to specific regulations involving the accumulation of net considerations and interest rates capped at defined levels. These changes are expected to enhance consumer protection while also simplifying the regulatory environment for insurance providers, thus aiming for a balance between stakeholder interests in the life insurance industry.
Summary
Senate Bill 529 aims to modify the calculations related to life insurance and annuities in terms of minimum nonforfeiture amounts. The bill interferes specifically with the determination of values such as cash surrender and death benefits under annuity contracts. It introduces an updated method for calculating the minimum nonforfeiture amounts based on net considerations and sets a specific structure regarding how interest rates are defined and adjusted within these financial products.
Sentiment
General sentiment surrounding SB529 appears to be supportive, particularly among insurance companies and consumers who may benefit from improved clarity and structure in how annuity contracts operate. However, there exists some concern among consumer advocacy groups regarding whether the adjustments adequately protect policyholders in various circumstances, particularly concerning dividends and profit-sharing methods associated with these contracts.
Contention
Notable points of contention that arose during legislative discussions included the adequacy of the new interest rate calculation provisions and whether the changes would truly benefit consumers in the long run. Questions were raised about the fundamental impact these adjustments might have on the market, especially how they could potentially increase costs for consumers if insurers adjusted their pricing models based on these new calculations. Additionally, the competence of the enforcement mechanisms proposed for overseeing these changes drew scrutiny.
Schools; modifying calculation of the certain adjusted cohort graduation rates; modifying calculation of Oklahoma School Testing Program annual reports. Effective date. Emergency.