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MN HF1950

Bill

Official Source

Status

Introduced

3/4/2021

Primary Sponsor

Liz Reyer

Click for details

Origin

House of Representatives

92nd Legislature 2021-2022

AI Summary

  • Amends Minnesota Statutes 2020, section 61A.245, subdivision 4, to modify the Standard Nonforfeiture Law for Individual Deferred Annuities
  • Changes the annual contract charge from unspecified amount to a fixed $50, accumulated at specified interest rates
  • Establishes interest rate calculation as 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 contracts providing equity indexed benefits to increase the interest rate reduction by up to an additional 100 basis points, subject to commissioner approval that the present value does not exceed the benefit's market value
  • Becomes effective the day following enactment

Legislative Description

Standard Nonforfeiture Law for Individual Deferred Annuities modified.

Last Action

Second reading

3/18/2021

Committee Referrals

Commerce Finance & Policy3/4/2021

Full Bill Text

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