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Modify Nonforfeiture Percent Surrender Annuity

Concerning a modification to the minimum nonforfeiture percentage required to be paid upon the surrender of an annuity policy.
2021 Regular Session
Bill Summary

When the holder of an annuity policy surrenders the policy, the holder forfeits most of the accumulated value of the policy, but the insurance company that issued the policy must pay to the holder a percentage of the policy's value (the nonforfeiture rate). Under current law, the nonforfeiture rate is the lesser of 3% per year or a fraction of the federal reserve's 5-year constant maturity treasury rate; the rate resulting from this fraction must not be less than one percent. The bill reduces the minimum nonforfeiture rate resulting from this fraction to not less than .15%.
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)




Bill Text

  • All Versions (6 )
    Date Bill Type Documents
    06/11/2021 Final Act PDF
    05/28/2021 Rerevised PDF
    05/27/2021 Revised PDF
    05/20/2021 Reengrossed PDF
    05/19/2021 Engrossed PDF
    05/03/2021 Introduced PDF