HB 3 — AN ACT TO AMEND TITLE 18 OF THE DELAWARE CODE RELATING TO STANDARD NONFORFEITURE LAW FOR INDIVIDUAL DEFERRED ANNUITIES.
Last action — Signed by Governor
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✓Introduced
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✓In Committee
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✓Passed House
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✓Passed Senate
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✓To Executive
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6Enacted
This bill has been enacted into law. Introduced March 04, 2021. Enacted.
Prognosis
Where this bill stands today.
Odds of enactment
HighHow often bills like it became law.
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Enacted
Current position in the legislative process.
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6 sponsors
2 primary, 4 co-sponsors signed on.
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Single-party support
Sponsorship is currently within one party (2 D).
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Cleared a recorded vote
Passed 2 recorded votes so far.
Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.
Summary
This Act incorporates recent changes adopted by the National Association of Insurance Commissioners to Model Law #805 “Standard Nonforfeiture Law – Individual Deferred Annuities” that address the impact on annuity products by the current low interest rate environment. Generally speaking, the standard Nonforfeiture Law requires that an individual deferred annuity contract provide the contract holder with a paid-up annuity or cash surrender benefits of a minimum amount if the contract holder surrenders the policy (e.g. stops making payments) during the accumulation period. The nonforfeiture amount is the deferred annuity’s accumulated value, minus certain charges (such as prior withdrawals and loans), based on interest rate minimums regulated by statute. Due to the COVID-19 pandemic, market interest rates have fallen so low as to render unrealistic the old statutory rates that insurance companies were required to use in determining the amount to return to contract holders. The NAIC has determined this threatens the availability of annuity products to consumers and, as such, adopted a change to the interest rate from 1% to 0.15%.
Bill Text
- Bill Text View text Current pdf
Action History
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Signed by Governor
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Passed By Senate. Votes: 21 YES
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Reported Out of Committee (Banking, Business & Insurance) in Senate with 1 Favorable, 4 On Its Merits
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Assigned to Banking, Business & Insurance Committee in Senate
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Passed By House. Votes: 41 YES
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Suspension of Rules in House
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Reported Out of Committee (Economic Development/Banking/Insurance & Commerce) in House with 3 Favorable, 6 On Its Merits
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Introduced and Assigned to Economic Development/Banking/Insurance & Commerce Committee in House
Sponsors
- William Bush · Primary
- Spiros Mantzavinos · Primary
- Michael Ramone · Cosponsor
- Paul S. Baumbach · Cosponsor
- Bruce C. Ennis · Cosponsor
- Gerald L. Brady · Cosponsor
Sponsorship breakdown
Export CSV (upgrade) →2 sponsors · 4 co-sponsors · 56 not signed on
Sponsors (2)
- William Bush Democratic
- Spiros Mantzavinos Democratic
Co-sponsors (4)
Not signed on (56)
56 members have not signed on to this bill.
Show all 56 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Votes
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Republican | 5 | 0 | 0 | 0 |
| Unaffiliated | 5 | 0 | 0 | 0 |
| Democratic | 11 | 0 | 0 | 0 |
| Total | 21 | 0 | 0 | 0 |
| % of votes cast | 100% | 0% | 0% | 0% |
How each member voted (21)
| Member | Party | Vote |
|---|---|---|
| Bruce C. Ennis | — | Yea |
| Colin Bonini | — | Yea |
| Ernesto B Lopez | — | Yea |
| Kyle Evans Gay | — | Yea |
| Sarah McBride | — | Yea |
| Bryan Townsend | Democratic | Yea |
| Darius J. Brown | Democratic | Yea |
| David P. Sokola | Democratic | Yea |
| John "Jack" Walsh | Democratic | Yea |
| Laura V. Sturgeon | Democratic | Yea |
| Marie Pinkney | Democratic | Yea |
| Nicole Poore | Democratic | Yea |
| S. Elizabeth Lockman | Democratic | Yea |
| Spiros Mantzavinos | Democratic | Yea |
| Stephanie L. Hansen | Democratic | Yea |
| Trey Paradee | Democratic | Yea |
| Brian Pettyjohn | Republican | Yea |
| Bryant L. Richardson | Republican | Yea |
| Dave G. Lawson | Republican | Yea |
| David L. Wilson | Republican | Yea |
| Gerald W. Hocker | Republican | Yea |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 13 | 0 | 0 | 0 |
| Democratic | 16 | 0 | 0 | 0 |
| Republican | 12 | 0 | 0 | 0 |
| Total | 41 | 0 | 0 | 0 |
| % of votes cast | 100% | 0% | 0% | 0% |
How each member voted (41)
Subjects
Frequently asked questions
- What does HB 3 do?
- This Act incorporates recent changes adopted by the National Association of Insurance Commissioners to Model Law #805 “Standard Nonforfeiture Law – Individual Deferred Annuities” that address the impact on annuity products by the current low interest rate environment. Generally speaking, the standard Nonforfeiture Law requires that an individual deferred annuity contract provide the contract holder with a paid-up annuity or cash surrender benefits of a minimum amount if the contract holder surrenders the policy (e.g. stops making payments) during the accumulation period. The nonforfeiture amount is the deferred annuity’s accumulated value, minus certain charges (such as prior withdrawals and loans), based on interest rate minimums regulated by statute. Due to the COVID-19 pandemic, market interest rates have fallen so low as to render unrealistic the old statutory rates that insurance companies were required to use in determining the amount to return to contract holders. The NAIC has determined this threatens the availability of annuity products to consumers and, as such, adopted a change to the interest rate from 1% to 0.15%.
- Who sponsors HB 3?
- HB 3 is sponsored by William Bush (Democratic), Spiros Mantzavinos (Democratic), Michael Ramone, Paul S. Baumbach, Bruce C. Ennis, and Gerald L. Brady.
- What is the current status of HB 3?
- This bill has been enacted into law. Introduced March 04, 2021. Enacted.
- Where can I track HB 3?
- Track HB 3 free on One Click Politics — get push/email alerts when it moves.
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