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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: |
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(1) authorize the purchaser to rescind the contract |
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and return it to the issuer without surrender fees for at least: |
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(A) 20 days after the date the contract is |
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entered into; or |
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(B) 30 days after the date the contract is |
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entered into if: |
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(i) the purchaser is 65 years of age or |
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older; or |
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(ii) the agreement is entered into by mail; |
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and |
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(2) provide for a refund to a purchaser who rescinds |
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the contract during the applicable rescission period equal to the |
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amount paid by the purchaser under the contract. |
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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, 2012. A contract delivered or issued for delivery before |
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January 1, 2012, 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, 2011. |