AZ SB1495

Amends Arizona Revised Statutes section 20-1232 to update the standard nonforfeiture law for individual deferred annuities.

Modifies interest rate calculations for minimum nonforfeiture amounts by using the lesser of 3 percent per annum or the five-year constant maturity treasury rate (minus 125 basis points), with a floor of 0.15 percent.

Allows companies to increase the basis point reduction by up to an additional 100 basis points for contracts providing equity indexed benefits, subject to director approval that the present value does not exceed market value.

Updates terminology throughout the statute (e.g., "upon" to "on," "prior to" to "before," "per cent" to "percent") for consistency and clarity.

Applies to deferred annuity contracts issued in Arizona, with existing exemptions for reinsurance, group annuities, variable annuities, immediate annuities, and contracts delivered outside Arizona.