SB166 • 2026

Insurance; contingent deferred annuities, nonforfeiture benefits.

An Act to amend and reenact §§ 38.2-106 and 38.2-3219 of the Code of Virginia, relating to insurance; contingent deferred annuities.

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: McPike
Last action: 2026-04-08
Official status: Acts of Assembly Chapter
Effective date: Not listed

Plain English Breakdown

The bill summary and text do not provide details on whether contingent deferred annuities are exempted from other insurance requirements, only that the Commission may set standards for them.

Insurance Changes for Contingent Deferred Annuities

This act allows the State Corporation Commission to set rules for contingent deferred annuities, including nonforfeiture benefits.

What This Bill Does

Amends Virginia law to include 'contingent deferred annuity' in the definition of annuities.
Permits the State Corporation Commission to establish reasonable standards for contingent deferred annuities and their nonforfeiture benefits.

Who It Names or Affects

Insurance companies that offer contingent deferred annuities in Virginia.
People who buy or own contingent deferred annuities in Virginia.

Terms To Know

Contingent Deferred Annuity: An insurance product where payments start only after certain conditions are met, like when investments reach a specific level.
Nonforfeiture Benefits: Benefits that can be kept or exchanged if someone stops paying for an annuity before it starts making regular payments.

Limits and Unknowns

The bill does not specify how the State Corporation Commission will create these rules.
It is unclear what specific standards the Commission might set for contingent deferred annuities.

Bill History

2026-04-08 Governor
Approved by Governor-Chapter 486 (effective 7/1/2026)
2026-04-08 Governor
Acts of Assembly Chapter text (CHAP0486)
2026-03-23 Senate
Fiscal Impact Statement from State Corporation Commission (SB166)
2026-03-10 Senate
Enrolled Bill communicated to Governor on March 10, 2026
2026-03-10 Governor
Governor's Action Deadline 11:59 p.m., April 13, 2026
2026-03-09 House
Signed by Speaker
2026-03-09 Senate
Signed by President
2026-03-09 Senate
Enrolled
2026-03-09 Senate
Bill text as passed Senate and House (SB166ER)
2026-03-03 House
Read third time
2026-03-03 House
Passed House Block Vote (97-Y 0-N 0-A)
2026-03-02 House
Read second time
2026-02-26 Labor and Commerce
Reported from Labor and Commerce (21-Y 0-N)
2026-02-24 Subcommittee #1
Subcommittee recommends reporting (9-Y 0-N)
2026-02-17 Subcommittee #1
Assigned HCL sub: Subcommittee #1
2026-02-04 House
Placed on Calendar
2026-02-04 House
Read first time
2026-02-04 Labor and Commerce
Referred to Committee on Labor and Commerce
2026-01-30 Senate
Read third time and passed Senate Block Vote (38-Y 0-N 0-A)
2026-01-29 Senate
Read second time
2026-01-29 Senate
Engrossed by Senate Block Vote (Voice Vote)
2026-01-28 Senate
Rules suspended
2026-01-28 Senate
Passed by for the day
2026-01-28 Senate
Constitutional reading dispensed Block Vote (on 1st reading) (40-Y 0-N 0-A)
2026-01-28 Senate
Passed by for the day Block Vote (Voice Vote)
2026-01-26 Commerce and Labor
Reported from Commerce and Labor (15-Y 0-N)
2026-01-26 Senate
Fiscal Impact Statement from State Corporation Commission (SB166)
2026-01-07 Senate
Prefiled and ordered printed; Offered 01-14-2026 26101910D
2026-01-07 Commerce and Labor
Referred to Committee on Commerce and Labor

Official Summary Text

Insurance; contingent deferred annuities; nonforfeiture benefits.
Permits the State Corporation Commission to adopt reasonable standards for contingent deferred annuities, as defined in the bill, including nonforfeiture benefits. The bill subjects contingent deferred annuities to certain requirements applicable under current law to other types of insurance contracts.

Current Bill Text

Read the full stored bill text

An Act to amend and reenact §§
38.2-106
and
38.2-3219
of the Code of Virginia, relating to insurance; contingent deferred annuities.
Be it enacted by the General Assembly of Virginia:
1. That §§
38.2-106
and
38.2-3219
of the Code of Virginia are amended and reenacted as follows:
§
38.2-106
. Annuities.
"Annuities" means all agreements to make periodic payments in specified or calculable sums pursuant to the terms of a contract for a stated period of time or for the life of the person or persons specified in the contract. "Annuities" does not include contracts defined in §
38.2-102
and qualified charitable gift annuities as defined in §
38.2-106.1
.
As used in this title, unless the context requires otherwise, "annuity" shall be deemed to include "variable annuity" and "modified guaranteed annuity," and shall be deemed to include a contract under which a lump sum cash settlement is an alternative to the option of periodic payments.
"Contingent deferred annuity" means an annuity that establishes a life insurer's obligation to make periodic payments for the life of the person or persons specified in the annuity upon the depletion to a specified amount of designated investments that are not owned or held by the insurer due to contractually permitted withdrawals, market performance, fees, or other charges.
§
38.2-3219
. Applicability.
A.
Sections
38.2-3220
through
38.2-3229
shall not apply to any (i) reinsurance; (ii) group annuity purchased under a retirement plan or plan of deferred compensation established or maintained by an employer, including a partnership or sole proprietorship, or by an employee organization, or by both, other than a plan providing individual retirement accounts or individual retirement annuities under § 408 of the Internal Revenue Code, as amended; (iii) premium deposit fund; (iv) variable annuity; (v) investment annuity; (vi) immediate annuity; (vii) deferred annuity contract after annuity payments have commenced; (viii) reversionary annuity; (ix) modified guaranteed annuity; or (x) contract delivered outside this Commonwealth through an agent or other representative of the insurer issuing the contract.
B. Sections
38.2-3220
through
38.2-3225
shall not apply to any contingent deferred annuity. The Commission may adopt reasonable standards for contingent deferred annuities, including nonforfeiture benefits, that are equitable to the contract holder, appropriate in relation to the risks insured, and consistent with the general intent of Chapter 32 (§
38.2-3220
et seq.), as determined by the Commission.