Bill Text: TX SB1734 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to the use by insurance companies of separate accounts in connection with life insurance and annuities and certain other benefits.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2023-03-16 - Referred to Business & Commerce [SB1734 Detail]
Download: Texas-2023-SB1734-Introduced.html
88R5919 CJD-F | ||
By: Johnson | S.B. No. 1734 |
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relating to the use by insurance companies of separate accounts in | ||
connection with life insurance and annuities and certain other | ||
benefits. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. The legislature declares that the intent of this | ||
Act is to be consistent with: | ||
(1) uniform laws of the various states in which the | ||
approval of a separate account and of the investments and reserves | ||
in a separate account is performed by the domiciliary state; and | ||
(2) recent legislative enactments designed to | ||
modernize insurance regulation by exempting certain large | ||
commercial-type policy forms from regulatory filing and approval. | ||
SECTION 2. Section 1152.055, Insurance Code, is amended to | ||
read as follows: | ||
Sec. 1152.055. GUARANTEED BENEFITS AND MONEY RESTRICTION | ||
FOR SEPARATE ACCOUNTS. A domestic [ |
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maintain a reserve for a benefit guaranteed as to dollar amount and | ||
duration or funds guaranteed as to principal amount or stated rate | ||
of interest in a separate account except with the commissioner's | ||
approval and under conditions for investments, and other matters, | ||
that recognize the guaranteed nature of the benefits provided and | ||
that are prescribed by the department. | ||
SECTION 3. Subchapter A, Chapter 1701, Insurance Code, is | ||
amended by adding Section 1701.006 to read as follows: | ||
Sec. 1701.006. EXEMPTION FOR CERTAIN GROUP ANNUITY | ||
TRANSACTIONS. (a) The filing and approval requirements in this | ||
chapter do not apply to any group annuity policy, certificate, or | ||
contract written or issued by an insurer authorized to engage in the | ||
business of insurance in this state that involves use of a separate | ||
account if benefits would also have guarantees from an insurer's | ||
general account. | ||
(b) For purposes of this section, a group annuity policy, | ||
certificate, or contract includes a single premium group annuity | ||
policy, certificate, or contract that is negotiated between an | ||
insurer and an applicable group or plan sponsor. | ||
SECTION 4. This Act takes effect immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2023. |