AB 1398 — Annuities: cash surrender benefits.

Summary

Existing law governs annuities and, for those insurance contracts that provide cash surrender benefits, prescribes the cash surrender benefit available prior to maturity. Existing law also requires the death benefit under these contracts to be at least equal to the cash surrender benefit. Existing law requires, with exceptions, that no contract of annuity be delivered or issued for delivery in this state unless it contains, in substance, specified provisions, or corresponding provisions that in the opinion of the commissioner are at least as favorable to the contractholder, upon cessation of payment of considerations under the contract. This bill, among other things, would require the insurer, for an individual annuity contract issued on or after January 1, 2019, to return to the owner all moneys due for annuity contracts that are surrendered by the contract owner as expeditiously as possible after the request for surrender is received, as defined, but no later than 45 days from the date of surrender, as specified. The bill would authorize insurers to require that a request to surrender a contract be in writing and contain various elements, including, the contract number of the contract and the name, address, and telephone number of the contract owner, on the contract to be surrendered. The bill would also authorize the insurer to require the contract owner to complete an administrative form, as provided, as part of the surrender process, and would require the surrender be processed and all moneys due be returned within 30 days from the effective date of the surrender if the contract owner completes and submits the administrative form within 14 days of the surrender request. The bill would require a contract to include language or be accompanied by a notice setting forth the permitted requirements for a surrender of the contract, as specified.

Bill Text

• Chaptered 09/11/17 - Chaptered Current pdf September 11, 2017
• Enrolled 08/29/17 - Enrolled pdf August 29, 2017
• Amended 06/20/17 - Amended Senate pdf June 20, 2017
• Amended 05/01/17 - Amended Assembly pdf May 01, 2017
• Introduced 02/17/17 - Introduced pdf February 17, 2017
• AB1398 View text html

Action History

1. September 11, 2017

   Chaptered by Secretary of State - Chapter 228, Statutes of 2017.

2. September 11, 2017

   Approved by the Governor.

3. August 30, 2017

   Enrolled and presented to the Governor at 3:30 p.m.

4. August 28, 2017

   Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 73. Noes 0. Page 2789.).

5. July 20, 2017

   In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 18 pursuant to Assembly Rule 77.

6. July 20, 2017

   Read third time. Passed. Ordered to the Assembly. (Ayes 38. Noes 0. Page 2128.).

7. July 17, 2017

   Read second time. Ordered to Consent Calendar.

8. July 13, 2017

   From committee: Do pass. To Consent Calendar. (Ayes 10. Noes 0.) (July 12).

9. June 20, 2017

   From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on I., B. & F.I.

10. June 08, 2017

    Referred to Com. on I., B. & F.I.

11. May 30, 2017

    In Senate. Read first time. To Com. on RLS. for assignment.

12. May 30, 2017

    Read third time. Passed. Ordered to the Senate. (Ayes 77. Noes 0. Page 1787.)

13. May 04, 2017

    Read second time. Ordered to third reading.

14. May 03, 2017

    From committee: Do pass. (Ayes 13. Noes 0.) (May 3).

15. May 02, 2017

    Re-referred to Com. on INS.

16. May 01, 2017

    From committee chair, with author's amendments: Amend, and re-refer to Com. on INS. Read second time and amended.

17. March 13, 2017

    Referred to Com. on INS.

18. February 19, 2017

    From printer. May be heard in committee March 21.

19. February 17, 2017

    Read first time. To print.

Sponsors

• Ash Kalra · Primary

Votes

Subjects