MN HF3530

Prohibits annuity contracts issued on or after the operative date from penalizing death as a forfeiture or surrender, requiring companies to pay beneficiaries the full contract value plus interest at the contract's stated rate upon notice of death prior to annuity payments beginning.

Requires annuity contracts to include provisions for paid-up annuity benefits upon cessation of payments or contract owner request, or alternatively provide cash surrender benefits with possible deferral up to six months with commissioner approval.

Mandates contracts include statements of mortality tables and interest rates, minimum guaranteed benefits, and explanation of how benefits are altered by additional credited amounts, indebtedness, or prior withdrawals.

Allows deferred annuity contracts to terminate after two years without consideration if the resulting paid-up benefit would be less than $20 monthly, with payment calculated using specified mortality and interest rates.

Effective retroactively from January 1, 2009, applying to all annuity contracts issued on or after that date.