Bill Text: TX SB276 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to a rescission period for annuity contracts.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2011-01-31 - Referred to State Affairs [SB276 Detail]
Download: Texas-2011-SB276-Introduced.html
| 82R2822 AJA-D | ||
| By: Davis | S.B. No. 276 | |
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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. An annuity | ||
| contract must: | ||
| (1) authorize the purchaser to rescind the contract | ||
| and return it to the issuer without surrender fees for at least: | ||
| (A) 20 days after the date the contract is | ||
| entered into; or | ||
| (B) 30 days after the date the contract is | ||
| entered into if: | ||
| (i) the purchaser is 65 years of age or | ||
| older; or | ||
| (ii) the agreement is entered into by mail; | ||
| and | ||
| (2) provide for a refund to a purchaser who rescinds | ||
| the contract during the applicable rescission period equal to the | ||
| amount paid by the purchaser under the contract. | ||
| 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. | ||
