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A BILL TO BE ENTITLED
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AN ACT
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relating to contingent deferred annuity contracts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1107.002(a), Insurance Code, is amended |
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to read as follows: |
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(a) This chapter does not apply to: |
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(1) a reinsurance contract; |
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(2) a group annuity contract that is purchased under a |
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retirement plan or plan of deferred compensation established or |
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maintained by an employer, including a partnership or sole |
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proprietorship, by an employee organization, or by both, other than |
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a plan that provides individual retirement accounts or individual |
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retirement annuities under Section 408, Internal Revenue Code of |
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1986, as amended; |
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(3) a premium deposit fund; |
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(4) a variable annuity contract; |
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(5) an investment annuity contract; |
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(6) an immediate annuity contract; |
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(7) a deferred annuity contract under which annuity |
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payments have begun; [or] |
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(8) a reversionary annuity contract; or |
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(9) a contingent deferred annuity contract as defined |
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by Section 1116.003. |
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SECTION 2. Chapter 1116, Insurance Code, is amended by |
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adding Section 1116.003 to read as follows: |
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Sec. 1116.003. RULEMAKING AUTHORITY FOR CONTINGENT |
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DEFERRED ANNUITY CONTRACTS. (a) In this section, "contingent |
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deferred annuity contract" means an annuity contract in which a |
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life insurer makes periodic payments for the annuitant's lifetime |
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beginning when a designated investment that is not owned or held by |
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the insurer is depleted to an amount specified by the contract due |
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to contractually permitted withdrawals, market performance, fees, |
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or other charges. |
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(b) The commissioner by rule may adopt reasonable standards |
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for contingent deferred annuity contracts, including standards |
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for: |
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(1) the procedures for department review and approval |
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of contingent deferred annuity contracts and the criteria the |
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department will use in approving the contracts; |
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(2) replacement, suitability, and disclosure |
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requirements that are consistent with applicable model regulations |
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developed by the National Association of Insurance Commissioners; |
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and |
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(3) advertising of contingent deferred annuity |
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contracts that are consistent with applicable model regulations |
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developed by the National Association of Insurance Commissioners. |
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SECTION 3. 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, 2015. |