NU Online News Service, April 15, 2004, 6:01 p.m. EDT – The California Department of Insurance wants life insurers to cc: it when they introduce annuity contracts.[@@]
The California department is supporting Assembly Bill 2384, a state bill that would require life insurers to file annuity contracts with the department before the insurers could market, issue or deliver the contracts.
Insurers would not have to get prior approval before selling annuity contracts, according to a note prepared by Annabel Chang, a legislative aide.
The California department believes the provision will help it “review critical policy developments,” Chang writes in comment on the bill. “The DOI believes that it will also be in a better position to identify and resolve policy form provisions that may be problematic and will be able to review the method for calculating the interest rate used in determining minimum nonforfeiture benefits for deferred annuities.”
Another section of the bill would require issuers of credit life insurance and accidental death insurance policies to pay interest if they fail to pay death benefits within 30 days of the death of the insured.
Issuers of ordinary life policies already have to pay interest if they take more than 30 days to pay death benefits, Chang writes.
The bill was introduced by Assemblymember George Nakano, D-Torrance, Calif.
The Assembly Insurance Committee voted 16-0 Wednesday to approve the bill and send it to the Appropriations Committee for further consideration.
The text of the bill is on the Web at http://www.leginfo.ca.gov/pub/bill/asm/ab_2351-2400/ab_2384_bill_20040219_introduced.html