HSB 525 (LSB 5598YC (4) 91)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON YOUNG)

A BILL FOR

An Act relating to the applicability of the standard nonforfeiture law for individual deferred annuities to contingent deferred annuities.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 508.38, subsection 1, Code 2026, is amended to read as follows:
   1.  a.  This section does shall not apply to any reinsurance, group annuity purchased under a retirement plan or plan of deferred compensation established or maintained by an employer, including a partnership or sole proprietorship, or by an employee organization, or by both, other than a plan providing individual retirement accounts or individual retirement annuities under section 408 of the United States Internal Revenue Code, as now or hereafter amended, premium deposit fund, variable annuity, investment annuity, immediate annuity, any deferred annuity contract after annuity payments have commenced, or reversionary annuity, nor to any contract which is delivered outside this state through an agent or other representative of the company issuing the contract.
   b.  Subsections 2 through 7 shall not apply to contingent deferred annuities, except that the commissioner may prescribe by rules adopted pursuant to chapter 17A nonforfeiture benefits for contingent deferred annuities that the commissioner deems equitable to policyholders, appropriate for the risks insured, and, to the extent possible, consistent with the general intent of this section.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill provides that subsections 2 through 7 of Code section 508.38 (standard nonforfeitures —— deferred annuities) shall not apply to contingent deferred annuities, except that the commissioner of insurance may prescribe by rule nonforfeiture benefits for contingent deferred annuities that the commissioner deems equitable to policyholders, appropriate for the risks insured, and consistent with the general intent of Code section 508.38.