Texas House Bill HB1293

Texas 2009 - 81st Regular

• Out of House Committee: 4/16/09
• Voted on by House: 4/22/09
• Out of Senate Committee: 5/14/09
• Voted on by Senate: 5/21/09
• Governor Action: 6/19/09
• Enrolled: 5/26/09
• Vetoed: 6/19/09

Caption

Relating to the sale and marketing of life insurance and annuities.

Impact

The implications of HB 1293 on state law include the addition of Chapter 1116 to the Texas Insurance Code, which sets forth specific requirements for the disclosure of essential features of annuity contracts. The bill mandates that insurers provide consumers with both a disclosure document and a Buyer's Guide before an annuity application is finalized. This effort is designed to mitigate the risks faced by consumers due to misunderstanding annuity terms and conditions, thereby enhancing informed decision-making in financial planning.

Summary

House Bill 1293 establishes new disclosure standards for certain annuity contracts within Texas. The bill aims to enhance consumer protection by ensuring that individuals purchasing annuities receive comprehensive information about the products they are considering. By detailing the required disclosures, the legislation seeks to foster consumer understanding and education regarding annuities, including the features and risks associated with these financial products.

Contention

The bill has the potential to encounter contention regarding the balance between regulatory requirements and industry practices. Insurers may express concerns about the administrative burden imposed by the new disclosure mandates, particularly in terms of the additional steps required during the sales process. Furthermore, the effectiveness of these requirements in genuinely enhancing consumer understanding might be debated, especially in relation to their impact on sales practices and consumer choice within the annuity market.