Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB529 Compare Versions

Version 1 (Old)

Version 2 (New)

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4		-	An Act
5		-	ENROLLED SENATE
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	30	+
	31	+	STATE OF OKLAHOMA
	32	+
	33	+	1st Session of the 58th Legislature (2021)
	34	+
	35	+	ENGROSSED SENATE
6	36		BILL NO. 529 By: Quinn of the Senate
7	37
8	38		and
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10	40		Mize of the House
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17	47		An Act relating to life insurance and annuities;
18	48		amending 36 O.S. 2011, Section 4030.5, which relates
19	49		to minimum nonforfeiture amounts; modifying
20	50		calculation of certain interest rate; and providing
21	51		an effective date.
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27		-	SUBJECT: Insurance
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29	57		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
30		-
31	58		SECTION 1. AMENDATORY 36 O.S. 2011, Section 4030.5, is
32	59		amended to read as follows:
33		-
34	60		Section 4030.5. A. The minimum values as specified in Sections
35	61		4030.6, 4030.7, 4030.8, 4030.9 and 4030.11 of this title, of any
36	62		paid-up annuity, cash surrender or death benefits available under an
37	63		annuity contract shall be based upon minimum nonforfeiture amounts
38	64		as defined in this section.
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40	65		B. 1. The minimum nonforfeiture amount at any time at or prior
41	66		to the commencement of any annuity payments shall be equal to an
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42	94		accumulation up to su ch time at rates of interest as indicated in
43	95		subsection C of this section of the net considerations, as
44	96		hereinafter defined, paid prior to such time, decreased by the sum
45	97		of:
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48		-	ENR. S. B. NO. 529 Page 2
49	98		a. any prior withdrawals from or partial surrenders of
50	99		the contract accumulated a t rates of interest
51	100		indicated in subsection C of this section,
52		-
53	101		b. an annual contract charge of Fifty Dollars ($50.00),
54	102		accumulated at rates of interest indicated in
55	103		subsection C of this section,
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57	104		c. any premium tax paid by the company for the contract,
58	105		accumulated at rates of interest indicated in
59	106		subsection C of this section, and
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61	107		d. the amount of any indebtedness to the company on the
62	108		contract, including interest due and accrued.
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64	109		2. The net considerations for a given contract year used to
65	110		define the minimum nonforfeiture amount shall be an amount equal to
66	111		eighty-seven and one-half percent (87.5%) of the gross
67	112		considerations credited to the contract during that contract year.
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69	113		C. The interest rate used in determining minimum nonforfeiture
70	114		amounts shall be an annual rate of interest determined as the lesser
71	115		of three percent (3%) per annum and the following, which shall be
72	116		specified in the contract if the interest rate will be reset:
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74	144		1. The five-year Constant Maturity Treasury Rate reported by
75	145		the Federal Reserve as of a date, or average over a period, rounded
76	146		to the nearest one-twentieth of one percent (1/20 of 1%), specified
77	147		in the contract no longer than fifteen (15) months prior to the
78	148		contract issue date or redetermination date under paragraph 4 of
79	149		this subsection;
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81	150		2. Reduced by one hundred twenty -five (125) basis points;
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83	151		3. If the resulting interest rate is not less than one percent
84	152		(1%) fifteen one-hundredths of one percent (.15%) ; and
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86	153		4. The interest rate shall apply for an initial period and may
87	154		be redetermined for additional periods. The redetermination date,
88	155		basis and period, if any, shall be stated in the contract. The
89	156		basis is the date or average over a specified period that produces
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92	157		the value of the five -year Constant Maturity Treasury Rate to be
93	158		used at each redetermination date.
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95	159		D. During the period or term that a contract provides
96	160		substantive participation in an equity indexed benefit, it may
97	161		increase the reduction described in paragraph 2 of subsection C of
98	162		this section by up to an addition al one hundred (100) basis points
99	163		to reflect the value of the equity index benefit. The present value
100	164		at the contract issue date, and at each redetermination date
101	165		thereafter, of the additional reduction shall not exceed the market
102	166		value of the benefit. T he Commissioner may require a demonstration
103	167		that the present value of the additional reduction does not exceed
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104	195		the market value of the benefit. Lacking such a demonstration that
105	196		is acceptable to the Commissioner, the Commissioner may disallow or
106	197		limit the additional reduction.
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108	198		E. The Commissioner may adopt rules to implement the provisions
109	199		of paragraph 4 of subsection C of this section and to provide for
110	200		further adjustments to the calculation of minimum nonforfeiture
111	201		amounts for contracts that provide sub stantive participation in an
112	202		equity index benefit and for other contracts that the Commissioner
113	203		determines are justified.
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115	204		SECTION 2. This act shall become effective November 1, 2021.
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118		-	ENR. S. B. NO. 529 Page 4
119		-	Passed the Senate the 8th day of March, 2021.
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122		-
123		-	Presiding Officer of the Senate
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126		-	Passed the House of Representatives the 22nd day of April, 2021.
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130		-	Presiding Officer of the House
131		-	of Representatives
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133		-	OFFICE OF THE GOVERNOR
134		-	Received by the Office of the Governor this _______ _____________
135		-	day of _________________ __, 20_______, at _______ o'clock _______ M.
136		-	By: _________________________________
137		-	Approved by the Governor of the State of Oklahoma this _____ ____
138		-	day of _________________ __, 20_______, at _______ o'clock _______ M.
139		-
140		-	_________________________________
141		-	Governor of the State of Oklahoma
142		-
143		-
144		-	OFFICE OF THE SECRETARY OF STATE
145		-	Received by the Office of the Secretary of State this _______ ___
146		-	day of __________________, 20 _______, at _______ o'clock _______ M.
147		-	By: _______________________________ __
	206	+	COMMITTEE REPORT BY: COMMITTEE ON INSURANCE, dated 04/0 7/2021 - DO
	207	+	PASS.