House Journal: Page 894: Monday, March 31, 2003
Hoffman of Crawford offered amendment H-1172 filed by him as
follows:
H-1172
1 Amend House File 647 as follows:
2 1. Page 5, by inserting after line 8, the
3 following:
4 "Sec. . Section 508.38, subsection 2,
5 unnumbered paragraph 1, Code 2003, is amended by
6 striking the unnumbered paragraph and inserting in
7 lieu thereof the following:
8 In the case of contracts issued on or after the
9 operative date of this section as defined in
10 subsection 11, no contract of annuity, except as
11 stated in subsection 1, shall be delivered or issued
12 for delivery in this state unless it contains in
13 substance the following provisions, or corresponding
14 provisions that in the opinion of the commissioner are
15 at least as favorable to the contract holder, upon
16 cessation of payment of considerations under the
17 contract:
18 Sec. . Section 508.38, subsection 2, paragraphs
19 a and b, Code 2003, are amended by striking the
20 paragraphs and inserting in lieu thereof the
21 following:
22 a. That upon cessation of payment of
23 considerations under a contract or upon the written
24 request of the contract owner, the company shall grant
25 a paid-up annuity benefit on a plan stipulated in the
26 contract of such value as is specified in subsections
27 4, 5, 6, 7, and 9.
28 b. If a contract provides for a lump sum
29 settlement at maturity, or at any other time, that
30 upon surrender of the contract at or prior to the
31 commencement of any annuity payments, the company
32 shall pay in lieu of a paid-up annuity benefit a cash
33 surrender benefit of such amount as is specified in
34 subsections 4, 5, 7, and 9. The company may reserve
35 the right to defer the payment of such case surrender
36 benefit for a period not to exceed six months after
37 demand therefore with surrender of the contract after
38 making written request and receiving written approval
39 of the commissioner. The request shall address the
40 necessity and equitability to all policyholders of the
41 deferral.
42 Sec. . Section 508.38, subsections 3 and 11,
43 Code 2003, are amended by striking the subsections and
44 inserting in lieu thereof the following:
45 3. The minimum values as specified in subsections
46 4, 5, 6, 7, and 9 of any paid-up annuity, cash
© 2003 Cornell College and
League of Women Voters of Iowa
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