H.B. No. 1587
AN ACT
relating to the use by insurance companies of separate accounts in
connection with life insurance and annuities and certain other
benefits.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The legislature declares that the intent of this
Act is to be consistent with:
(1) uniform laws of the various states in which the
approval of a separate account and of the investments and reserves
in a separate account is performed by the domiciliary state; and
(2) recent legislative enactments designed to
modernize insurance regulation by exempting certain large
commercial-type policy forms from regulatory filing and approval.
SECTION 2. Section 1152.055, Insurance Code, is amended to
read as follows:
Sec. 1152.055. GUARANTEED BENEFITS AND MONEY RESTRICTION
FOR SEPARATE ACCOUNTS. A domestic [An] insurance company may not
maintain a reserve for a benefit guaranteed as to dollar amount and
duration or funds guaranteed as to principal amount or stated rate
of interest in a separate account except with the commissioner's
approval and under conditions for investments, and other matters,
that recognize the guaranteed nature of the benefits provided and
that are prescribed by the department.
SECTION 3. Subchapter A, Chapter 1701, Insurance Code, is
amended by adding Section 1701.006 to read as follows:
Sec. 1701.006. EXEMPTION FOR CERTAIN GROUP ANNUITY
TRANSACTIONS. (a) The filing and approval requirements in this
chapter do not apply to any group annuity policy, certificate, or
contract written or issued by an insurer authorized to engage in the
business of insurance in this state that involves use of a separate
account if benefits would also have guarantees from an insurer's
general account.
(b) For purposes of this section, a group annuity policy,
certificate, or contract includes a single premium group annuity
policy, certificate, or contract that is negotiated between an
insurer and an applicable group or plan sponsor.
SECTION 4. 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, 2023.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1587 was passed by the House on April
28, 2023, by the following vote: Yeas 141, Nays 3, 2 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 1587 was passed by the Senate on May
17, 2023, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor