Bill Text: TX HB1032 | 2011-2012 | 82nd Legislature | Enrolled
Bill Title: Relating to a rescission period for annuity contracts.
Spectrum: Bipartisan Bill
Status: (Passed) 2011-05-19 - Effective on 9/1/11 [HB1032 Detail]
Download: Texas-2011-HB1032-Enrolled.html
H.B. No. 1032 |
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relating to a rescission period for annuity contracts. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subtitle A, Title 7, Insurance Code, is amended | ||
by adding Chapter 1116 to read as follows: | ||
CHAPTER 1116. REQUIRED PROVISIONS FOR ANNUITY CONTRACT | ||
Sec. 1116.001. DEFINITION. In this chapter, "annuity" | ||
means a fixed, variable, or modified guaranteed annuity that is | ||
individually solicited, whether classified as an individual | ||
annuity or group annuity. | ||
Sec. 1116.002. RESCISSION PERIOD REQUIRED. (a) A fixed | ||
annuity contract must provide that, for a period of at least 20 days | ||
after the date the contract is delivered, the purchaser may rescind | ||
the contract and receive an unconditional refund of premiums paid | ||
for the contract, including any contract fees or charges. | ||
(b) Except as provided by Subsection (c), a variable or | ||
modified guaranteed annuity contract must provide that, for a | ||
period of at least 20 days after the date the contract is delivered, | ||
the purchaser may rescind the contract and receive an unconditional | ||
refund that is equal to the cash surrender value provided in the | ||
contract plus any fees or charges deducted from the premiums or | ||
imposed under the contract. | ||
(c) Subsection (b) does not apply to an annuity contract if | ||
the prospective owner is an accredited investor, as defined by 17 | ||
C.F.R. Section 230.501(a) as adopted by the United States | ||
Securities and Exchange Commission. | ||
SECTION 2. The change in law made by this Act applies only | ||
to an annuity contract delivered or issued for delivery on or after | ||
January 1, 2012. A contract delivered or issued for delivery before | ||
January 1, 2012, is governed by the law in effect immediately before | ||
the effective date of this Act, and that law is continued in effect | ||
for that purpose. | ||
SECTION 3. This Act takes effect September 1, 2011. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 1032 was passed by the House on April | ||
7, 2011, by the following vote: Yeas 144, Nays 0, 1 present, not | ||
voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 1032 was passed by the Senate on May | ||
6, 2011, by the following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: _____________________ | ||
Date | ||
_____________________ | ||
Governor |