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A BILL TO BE ENTITLED
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AN ACT
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relating to the use by insurance companies of separate accounts in |
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connection with life insurance and annuities and certain other |
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benefits. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The legislature declares that the intent of this |
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Act is to be consistent with: |
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(1) uniform laws of the various states in which the |
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approval of a separate account and of the investments and reserves |
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in a separate account is performed by the domiciliary state; and |
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(2) recent legislative enactments designed to |
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modernize insurance regulation by exempting certain large |
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commercial-type policy forms from regulatory filing and approval. |
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SECTION 2. Section 1152.055, Insurance Code, is amended to |
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read as follows: |
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Sec. 1152.055. GUARANTEED BENEFITS AND MONEY RESTRICTION |
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FOR SEPARATE ACCOUNTS. A domestic [An] insurance company may not |
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maintain a reserve for a benefit guaranteed as to dollar amount and |
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duration or funds guaranteed as to principal amount or stated rate |
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of interest in a separate account except with the commissioner's |
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approval and under conditions for investments, and other matters, |
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that recognize the guaranteed nature of the benefits provided and |
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that are prescribed by the department. |
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SECTION 3. Subchapter A, Chapter 1701, Insurance Code, is |
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amended by adding Section 1701.006 to read as follows: |
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Sec. 1701.006. EXEMPTION FOR CERTAIN GROUP ANNUITY |
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TRANSACTIONS. (a) The filing and approval requirements in this |
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chapter do not apply to any group annuity policy, certificate, or |
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contract written or issued by an insurer authorized to engage in the |
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business of insurance in this state that involves use of a separate |
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account if benefits would also have guarantees from an insurer's |
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general account. |
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(b) For purposes of this section, a group annuity policy, |
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certificate, or contract includes a single premium group annuity |
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policy, certificate, or contract that is negotiated between an |
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insurer and an applicable group or plan sponsor. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2023. |