84R24070 SCL-F
By: Smithee H.B. No. 2586
Substitute the following for H.B. No. 2586:
By: Sheets C.S.H.B. No. 2586
A BILL TO BE ENTITLED
AN ACT
relating to contingent deferred annuity contracts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1107.002(a), Insurance Code, is amended
to read as follows:
(a) This chapter does not apply to:
(1) a reinsurance contract;
(2) a group annuity contract that is purchased under a
retirement plan or plan of deferred compensation established or
maintained by an employer, including a partnership or sole
proprietorship, by an employee organization, or by both, other than
a plan that provides individual retirement accounts or individual
retirement annuities under Section 408, Internal Revenue Code of
1986, as amended;
(3) a premium deposit fund;
(4) a variable annuity contract;
(5) an investment annuity contract;
(6) an immediate annuity contract;
(7) a deferred annuity contract under which annuity
payments have begun; [or]
(8) a reversionary annuity contract; or
(9) a contingent deferred annuity contract as defined
by Section 1116.003.
SECTION 2. Chapter 1116, Insurance Code, is amended by
adding Section 1116.003 to read as follows:
Sec. 1116.003. RULEMAKING AUTHORITY FOR CONTINGENT
DEFERRED ANNUITY CONTRACTS. (a) In this section, "contingent
deferred annuity contract" means an annuity contract in which a
life insurer makes periodic payments for the annuitant's lifetime
beginning when a designated investment that is not owned or held by
the insurer is depleted to an amount specified by the contract due
to contractually permitted withdrawals, market performance, fees,
or other charges.
(b) The commissioner by rule may adopt reasonable standards
for contingent deferred annuity contracts, including standards
for:
(1) the procedures for department review and approval
of contingent deferred annuity contracts and the criteria the
department will use in approving the contracts;
(2) replacement, suitability, and disclosure
requirements that are consistent with applicable model regulations
developed by the National Association of Insurance Commissioners;
and
(3) advertising of contingent deferred annuity
contracts that are consistent with applicable model regulations
developed by the National Association of Insurance Commissioners.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2015.