CT HB05445

Insurance companies issuing group annuity contracts to Connecticut employers and pension plans must provide written notice to all participants and beneficiaries at least 30 days before the contract becomes effective, effective October 1, 2016.

Pre-contract disclosures must include comparisons to ERISA and Pension Benefit Guaranty Corporation protections, Connecticut Life and Health Insurance Guaranty Association coverage details, creditor claim risks, tax treatment changes, detailed contract costs and expenses, and any fairness opinions or solvency analyses.

Insurance companies must provide annual written reports to all participants and beneficiaries detailing funding levels, investment performance by asset class, all associated expenses, changes to actuarial assumptions, and public documents filed with the Insurance Department.

Annuity contracts cannot be transferred to another entity unless that entity maintains an A or better rating from at least two nationally recognized rating agencies.

The Insurance Commissioner may adopt regulations to implement this section and impose penalties, fines, or assessments for violations.