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AR HB1601

Bill

Status

Passed

4/6/2021

Primary Sponsor

Brian Evans

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Origin

House of Representatives

93rd General Assembly (2021 Regular)

AI Summary

  • Amends Arkansas Code § 23-81-304(e)(2) to modify the interest rate used in determining minimum nonforfeiture amounts for individual deferred annuities

  • Sets the interest rate as the lesser of 3% per annum or a rate based on the five-year Constant Maturity Treasury Rate reported by the Federal Reserve System

  • Requires the Treasury Rate to be measured as of a date or average over a period no longer than 15 months prior to the contract issue date or redetermination date, rounded to the nearest 0.05%

  • Reduces the Treasury Rate by 125 basis points to calculate the final rate

  • Establishes a minimum floor of 0.15% (fifteen-hundredths of one percent) for the resulting interest rate

Legislative Description

To Modify The Minimum Required Nonforfeiture Rate For Individual Deferred Annuities Under The Standard Nonforfeiture Law For Individual Deferred Annuities.

Last Action

Notification that HB1601 is now Act 590

4/6/2021

Committee Referrals

Insurance & Commerce3/16/2021
Insurance and Commerce3/2/2021

Full Bill Text

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