SB1188 - Modifies the law regarding annuity contracts - Loudon
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||Modifies the law regarding annuity contracts
SCS/SB 1188 - This act amends the formula that may be used
for determining the minimum present value of an annuity when it
is terminated early. Current law requires these contracts to
offer a minimum interest rate of 3%. The act removes this
minimum and allows these contracts to offer a rate that is tied
to the five-year Constant Maturity Treasury Rate, as reported by
the Federal Reserve. The act permits sellers of annuities to
continue to use the current formula until July 1, 2006. The
current law is set to expire on July 1, 2004.
This act contains an emergency clause.
This act is similar to HB 938 (2004).