| 1 | 1 | | H.B. No. 1587 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | AN ACT |
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| 5 | 5 | | relating to the use by insurance companies of separate accounts in |
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| 6 | 6 | | connection with life insurance and annuities and certain other |
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| 7 | 7 | | benefits. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. The legislature declares that the intent of this |
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| 10 | 10 | | Act is to be consistent with: |
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| 11 | 11 | | (1) uniform laws of the various states in which the |
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| 12 | 12 | | approval of a separate account and of the investments and reserves |
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| 13 | 13 | | in a separate account is performed by the domiciliary state; and |
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| 14 | 14 | | (2) recent legislative enactments designed to |
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| 15 | 15 | | modernize insurance regulation by exempting certain large |
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| 16 | 16 | | commercial-type policy forms from regulatory filing and approval. |
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| 17 | 17 | | SECTION 2. Section 1152.055, Insurance Code, is amended to |
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| 18 | 18 | | read as follows: |
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| 19 | 19 | | Sec. 1152.055. GUARANTEED BENEFITS AND MONEY RESTRICTION |
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| 20 | 20 | | FOR SEPARATE ACCOUNTS. A domestic [An] insurance company may not |
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| 21 | 21 | | maintain a reserve for a benefit guaranteed as to dollar amount and |
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| 22 | 22 | | duration or funds guaranteed as to principal amount or stated rate |
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| 23 | 23 | | of interest in a separate account except with the commissioner's |
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| 24 | 24 | | approval and under conditions for investments, and other matters, |
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| 25 | 25 | | that recognize the guaranteed nature of the benefits provided and |
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| 26 | 26 | | that are prescribed by the department. |
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| 27 | 27 | | SECTION 3. Subchapter A, Chapter 1701, Insurance Code, is |
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| 28 | 28 | | amended by adding Section 1701.006 to read as follows: |
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| 29 | 29 | | Sec. 1701.006. EXEMPTION FOR CERTAIN GROUP ANNUITY |
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| 30 | 30 | | TRANSACTIONS. (a) The filing and approval requirements in this |
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| 31 | 31 | | chapter do not apply to any group annuity policy, certificate, or |
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| 32 | 32 | | contract written or issued by an insurer authorized to engage in the |
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| 33 | 33 | | business of insurance in this state that involves use of a separate |
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| 34 | 34 | | account if benefits would also have guarantees from an insurer's |
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| 35 | 35 | | general account. |
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| 36 | 36 | | (b) For purposes of this section, a group annuity policy, |
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| 37 | 37 | | certificate, or contract includes a single premium group annuity |
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| 38 | 38 | | policy, certificate, or contract that is negotiated between an |
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| 39 | 39 | | insurer and an applicable group or plan sponsor. |
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| 40 | 40 | | SECTION 4. This Act takes effect immediately if it receives |
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| 41 | 41 | | a vote of two-thirds of all the members elected to each house, as |
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| 42 | 42 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 43 | 43 | | Act does not receive the vote necessary for immediate effect, this |
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| 44 | 44 | | Act takes effect September 1, 2023. |
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| 45 | 45 | | ______________________________ ______________________________ |
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| 46 | 46 | | President of the Senate Speaker of the House |
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| 47 | 47 | | I certify that H.B. No. 1587 was passed by the House on April |
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| 48 | 48 | | 28, 2023, by the following vote: Yeas 141, Nays 3, 2 present, not |
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| 49 | 49 | | voting. |
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| 50 | 50 | | ______________________________ |
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| 51 | 51 | | Chief Clerk of the House |
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| 52 | 52 | | I certify that H.B. No. 1587 was passed by the Senate on May |
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| 53 | 53 | | 17, 2023, by the following vote: Yeas 31, Nays 0. |
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| 54 | 54 | | ______________________________ |
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| 55 | 55 | | Secretary of the Senate |
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| 56 | 56 | | APPROVED: _____________________ |
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| 57 | 57 | | Date |
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| 58 | 58 | | _____________________ |
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| 59 | 59 | | Governor |
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