82R1635 AJA-F
By: Wentworth S.B. No. 381
A BILL TO BE ENTITLED
AN ACT
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.