HB 3

  • Delaware House Bill
  • 151st General Assembly (2021-2022)
  • Introduced in House Mar 30, 2021
  • Passed House Mar 30, 2021
  • Senate
  • Governor

An Act To Amend Title 18 Of The Delaware Code Relating To Standard Nonforfeiture Law For Individual Deferred Annuities.

Abstract

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 Sponsors (6)

Votes


Mar 30, 2021

Actions


Mar 30, 2021

House

Passed By House. Votes: 41 YES

Senate

Assigned to Banking, Business & Insurance Committee in Senate

  • Introduction
  • Referral-Committee
Banking, Business & Insurance

Mar 26, 2021

House

Suspension of Rules in House

Mar 16, 2021

House

Reported Out of Committee (Economic Development/Banking/Insurance & Commerce) in House with 3 Favorable, 6 On Its Merits

  • Committee-Passage
  • Committee-Passage-Favorable
Economic Development/Banking/Insurance & Commerce

Mar 04, 2021

House

Introduced and Assigned to Economic Development/Banking/Insurance & Commerce Committee in House

  • Introduction
  • Referral-Committee
Economic Development/Banking/Insurance & Commerce

Bill Text

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Related Documents

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Sources

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