Bill Bush
- Democratic
- Representative
- District 29
Primary
This Act incorporates recent changes adopted by the National Association of Insurance Commissioners to Model Law #805 “Standard Nonforfeiture Law – Individual Deferred Annuities” that address the impact on annuity products by the current low interest rate environment. Generally speaking, the standard Nonforfeiture Law requires that an individual deferred annuity contract provide the contract holder with a paid-up annuity or cash surrender benefits of a minimum amount if the contract holder surrenders the policy (e.g. stops making payments) during the accumulation period. The nonforfeiture amount is the deferred annuity’s accumulated value, minus certain charges (such as prior withdrawals and loans), based on interest rate minimums regulated by statute. Due to the COVID-19 pandemic, market interest rates have fallen so low as to render unrealistic the old statutory rates that insurance companies were required to use in determining the amount to return to contract holders. The NAIC has determined this threatens the availability of annuity products to consumers and, as such, adopted a change to the interest rate from 1% to 0.15%.
Signed by Governor
Passed By Senate. Votes: 21 YES
Reported Out of Committee (Banking, Business & Insurance) in Senate with 1 Favorable, 4 On Its Merits
Assigned to Banking, Business & Insurance Committee in Senate
Passed By House. Votes: 41 YES
Suspension of Rules in House
Reported Out of Committee (Economic Development/Banking/Insurance & Commerce) in House with 3 Favorable, 6 On Its Merits
Introduced and Assigned to Economic Development/Banking/Insurance & Commerce Committee in House
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