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CA SB426

Bill

Official Source

Status

Passed

7/15/2015

Primary Sponsor

Connie Leyva

Click for details

Origin

Senate

2015-2016 Session

AI Summary

  • Repeals and replaces Section 10168.4 of the Insurance Code regarding annuity cash surrender benefits and death benefits
  • Requires cash surrender benefits prior to maturity to equal the present value of the maturity value of the paid-up annuity benefit, adjusted for withdrawals, indebtedness, and additional credited amounts
  • Limits the interest rate used to calculate present value to no more than 1 percent higher than the rate specified in the contract
  • For annuity contracts issued or delivered on or after January 1, 2016, to persons 65 years of age or older, changes the death benefit requirement from being equal to the cash surrender benefit to being equal to the annuity value or accumulation value, excluding any surrender charges or penalties
  • Effective date: January 1, 2016

Legislative Description

Annuities: cash surrender benefits.

Last Action

Chaptered by Secretary of State. Chapter 100, Statutes of 2015.

7/15/2015

Committee Referrals

Insurance6/16/2015
Insurance3/5/2015
Rules2/25/2015

Full Bill Text

No bill text available