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HB 380 (BR 1348) - T. Edmonds, R. Damron, S. Riggs
AN ACT relating to annuities.
Amend KRS 304.15-315, pertaining to the standard nonforfeiture law for individual deferred annuities, to permit the contract owner to request in writing a paid-up annuity benefit; provide that the interest rate in determining minimum nonforfeiture amounts shall be an annual rate of interest determined as the lesser of three percent pre annum and the terms in subsection (5) of this section, which must be specified in the contract if the terms are to be reset; permit a contract, during the period or term it provides substantive participation in an equity based indexed benefit, to increase the reduction in subsection (5)(b) of this section up to an additional 100 basis points to reflect the value of the equity index benefit; authorize the commissioner of insurance to promulgate administrative regulations to provide for further adjustments to the calculation of minimum nonforfeiture amounts for contracts that provide substantive participation in an equity index benefit and for other contracts that the commissioner determines justify adjustments.
HB 380 - AMENDMENTS
HCS - Delete the original provisions; amend KRS 304.15-315 to provide that after August 1, 2004, any insurer may file a notice of election to apply the provisions of Section 2 on a contract-form by contract-form basis to annuity contracts issued during the period from the date of election through June 30, 2006; provide that in all other instances insurers shall apply the provisions of Section 1 to annuity contracts issued through June 30, 2006; provide that insurers shall apply the provisions of Section 2 to all annuity contracts issued on or after July 1, 2006; create a new section of Subtitle 15 of KRS Chapter 304 to be known as the Standard Nonforfeiture Law for Individual Deferred Annuities of 2004; require certain provisions to be in annuity contracts issued on or after July 1, 2006; define minimum nonforfeiture amount; specify the interest rate used in determining minimum nonforfeiture amounts; authorize the commissioner to promulgate administrative regulations to provide for further adjustments to the calculation of minimum nonforfeiture amounts for contracts that provide substantive participation in an equity index benefit and for other contracts that the commissioner determines adjustments are justified; provide that as to any paid-up annuity benefit available under a contract the present value on the date annuity payments are to commence is at least equal to the minimum nonforfeiture amount on that date; provide for the cash surrender benefits available prior to maturity for contracts which provide cash surrender benefits; provide for the present value of any paid-up annuity benefit available as a nonforfeiture option at any time prior to maturity for contracts which do not provide cash surrender benefits; provide that after August 1, 2004 any insurer may file with the commissioner a written notice of its election to apply the provisions of Section 2 on a contract-form by contract-form basis to annuity contracts issued from the date of election through June 30, 2006; require insurers to apply the provisions of Section 2 to annuity contracts issued on or after July 1, 2006.
Jan 27-introduced in House
Jan 28-to Banking and Insurance (H)
Feb 5-posted in committee
Feb 18-reported favorably, 1st reading, to Calendar with Committee Substitute
Feb 19-2nd reading, to Rules; posted for passage in the Regular Orders of the Day for Friday, February 20, 2004
Feb 26-3rd reading, passed 97-0 with Committee Substitute
Feb 27-received in Senate
Mar 3-to Judiciary (S)
Mar 24-taken from committee; laid on clerk's desk; taken from clerk's desk; 1st reading; returned to Judiciary (S)
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