TX SB1823

Requires existing insurers to acknowledge receipt of a replacement or surrender notice within 5 business days when a policyholder transfers their life insurance or annuity contract to a new insurer

Mandates that existing insurers send transfer or surrender payments to the policy owner or replacing insurer within 30 days of receiving notice

Imposes an 18% annual interest penalty on unpaid amounts if the existing insurer fails to complete the transfer or surrender payment within 30 days, accruing from the 31st day until payment is made in full

Applies only to annuity contracts or insurance policies transferred or surrendered on or after January 1, 2026

Takes effect September 1, 2025