ARIZONA HOUSE OF REPRESENTATIVES Fifty-fifth Legislature First Regular Session
	Senate: TAT DP 8-0-1-0 | 3^rd Read 30-0-0-0 House: TRANS DPA/SE 10-1-1-0 | 3^rd Read 31-29-0-0 Final Read: 17-12-1-0

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SB 1495: graduated driver licenses; education program.

NOW: annuity contracts; nonforfeiture; interest rates

Sponsor:  Senator Livingston, LD 22

Transmitted to the Governor

Overview

Lowers the required minimum interest rate for determining an individual deferred annuity nonforfeiture amount from 1% to .15%.

History

The National Association of Insurance Commissioners (NAIC) provides expertise, data, and analysis for insurance commissioners to effectively regulate the industry and protect consumers. The U.S. standard-setting organization is governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer reviews, and coordinate regulatory oversight (www.naic.org). In 2020 the NAIC made revisions to its Model Standard Nonforfeiture Law (Model Regulation).

Annuities are investment contracts issued by insurance companies that provide income payments to the annuity holder at specified times, often beginning after retirement.  Annuity holders may make single or multiple contributions to their annuity before payments begin.  A deferred annuity delays income payments to the annuity holder until maturity.  The Model 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 policy is surrendered. The nonforfeiture amount is the deferred annuity's accumulated value, minus certain charges, based on interest rate minimums (A.R.S. § 20-1232).

Provisions

1. Codifies changes to the Model Standard Nonforfeiture Law for Individual Deferred Annuities by lowering the required minimum interest rate in determining an individual deferred annuity nonforfeiture amount from 1% to .15%. (Sec. 1)

2. Makes technical changes (Sec. 1)

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6.                   SB 1495

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