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A BILL TO BE ENTITLED
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AN ACT
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relating to a rescission period for annuity contracts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle A, Title 7, Insurance Code, is amended |
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by adding Chapter 1116 to read as follows: |
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CHAPTER 1116. REQUIRED PROVISIONS FOR ANNUITY CONTRACT |
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Sec. 1116.001. DEFINITION. In this chapter, "annuity" |
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means a fixed, variable, or modified guaranteed annuity that is |
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individually solicited, whether classified as an individual |
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annuity or group annuity. |
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Sec. 1116.002. RESCISSION PERIOD REQUIRED. An annuity |
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contract must provide: |
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(1) An unconditional refund of premiums paid for a |
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fixed annuity contract, including any contract fees or charges, |
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within 20 days of the delivery of the contract; and |
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(3) An unconditional refund for variable or modified |
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guaranteed annuity contracts within 20 days of the delivery of the |
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contract. The unconditional refund shall be equal to the cash |
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surrender value provided in the annuity contract, plus any fees or |
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charges deducted from the premiums or imposed under the contract. |
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This subparagraph does not apply if the prospective owner is an |
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accredited investor, as defined in Regulation D as adopted by the |
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United States Securities and Exchange Commission. |
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SECTION 2. The change in law made by this Act applies only |
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to an annuity contract delivered or issued for delivery on or after |
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January 1, 2010. A contract delivered or issued for delivery before |
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January 1, 2010, is governed by the law in effect immediately before |
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the effective date of this Act, and that law is continued in effect |
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for that purpose. |
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SECTION 3. This Act takes effect September 1, 2009. |