82R2822 AJA-D
By: Davis S.B. No. 276
A BILL TO BE ENTITLED
AN ACT
relating to a rescission period for annuity contracts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle A, Title 7, Insurance Code, is amended
by adding Chapter 1116 to read as follows:
CHAPTER 1116. REQUIRED PROVISIONS FOR ANNUITY CONTRACT
Sec. 1116.001. DEFINITION. In this chapter, "annuity"
means a fixed, variable, or modified guaranteed annuity that is
individually solicited, whether classified as an individual
annuity or group annuity.
Sec. 1116.002. RESCISSION PERIOD REQUIRED. An annuity
contract must:
(1) authorize the purchaser to rescind the contract
and return it to the issuer without surrender fees for at least:
(A) 20 days after the date the contract is
entered into; or
(B) 30 days after the date the contract is
entered into if:
(i) the purchaser is 65 years of age or
older; or
(ii) the agreement is entered into by mail;
and
(2) provide for a refund to a purchaser who rescinds
the contract during the applicable rescission period equal to the
amount paid by the purchaser under the contract.
SECTION 2. The change in law made by this Act applies only
to an annuity contract delivered or issued for delivery on or after
January 1, 2012. A contract delivered or issued for delivery before
January 1, 2012, is governed by the law in effect immediately before
the effective date of this Act, and that law is continued in effect
for that purpose.
SECTION 3. This Act takes effect September 1, 2011.