A bill for an act relating to the applicability of the standard nonforfeiture law for individual deferred annuities to contingent deferred annuities.(Formerly HSB 525 .)

House

File

2184

-

Introduced

HOUSE

FILE

2184

BY

COMMITTEE

ON

COMMERCE

(SUCCESSOR

TO

HSB

525)

A

BILL

FOR

An

Act

relating

to

the

applicability

of

the

standard

1

nonforfeiture

law

for

individual

deferred

annuities

to

2

contingent

deferred

annuities.

3

BE

IT

ENACTED

BY

THE

GENERAL

ASSEMBLY

OF

THE

STATE

OF

IOWA:

4

TLSB

5598HV

(1)

91

nls/ko

H.F.

2184

Section

1.

Section

508.38,

subsection

1,

Code

2026,

is

1

amended

to

read

as

follows:

2

1.

a.

This

section

does

shall

not

apply

to

any

reinsurance,

3

group

annuity

purchased

under

a

retirement

plan

or

plan

4

of

deferred

compensation

established

or

maintained

by

an

5

employer,

including

a

partnership

or

sole

proprietorship,

6

or

by

an

employee

organization,

or

by

both,

other

than

a

7

plan

providing

individual

retirement

accounts

or

individual

8

retirement

annuities

under

section

408

of

the

United

States

9

Internal

Revenue

Code,

as

now

or

hereafter

amended,

premium

10

deposit

fund,

variable

annuity,

investment

annuity,

immediate

11

annuity,

any

deferred

annuity

contract

after

annuity

payments

12

have

commenced,

or

reversionary

annuity,

nor

to

any

contract

13

which

is

delivered

outside

this

state

through

an

agent

or

other

14

representative

of

the

company

issuing

the

contract.

15

b.

Subsections

2

through

7

shall

not

apply

to

contingent

16

deferred

annuities,

except

that

the

commissioner

may

prescribe

17

by

rules

adopted

pursuant

to

chapter

17A

nonforfeiture

benefits

18

for

contingent

deferred

annuities

that

the

commissioner

deems

19

equitable

to

policyholders,

appropriate

for

the

risks

insured,

20

and,

to

the

extent

possible,

consistent

with

the

general

intent

21

of

this

section.

22

EXPLANATION

23

The

inclusion

of

this

explanation

does

not

constitute

agreement

with

24

the

explanation’s

substance

by

the

members

of

the

general

assembly.

25

This

bill

provides

that

subsections

2

through

7

of

Code

26

section

508.38

(standard

nonforfeitures

——

deferred

annuities)

27

shall

not

apply

to

contingent

deferred

annuities,

except

28

that

the

commissioner

of

insurance

may

prescribe

by

rule

29

nonforfeiture

benefits

for

contingent

deferred

annuities

that

30

the

commissioner

deems

equitable

to

policyholders,

appropriate

31

for

the

risks

insured,

and

consistent

with

the

general

intent

32

of

Code

section

508.38.

33

-1-

LSB

5598HV

(1)

91

nls/ko

1/

1