HB 545 (BR 2009) - S. Riggs
AN ACT relating to the replacement of life insurance contracts and annuities.
Amend KRS 304.12-030 to provide that if a person solicits an application for an annuity contract and knows the purchase will be a replacement transaction, the annuity shall not be issued until thirty (30) days after notice of such proposed replacement and all soliciting material has been delivered by the replacing insurer to the existing insurer; require the replacing insurer to agree in writing with the insured that the new annuity contract will not be contestable in the event of the insured's death to any greater extent than the existing annuity would have been contestable by the existing insurer had such replacement not taken place; provide that the new annuity contract issued by the replacing insurer may be voluntarily surrendered by the insured at any time within thirty (30) days after its delivery to the insured in exchange for a full refund of premiums paid by the replacing insurer to the insured.
HB 545 - AMENDMENTS
HCS - Delete original provisions; amend KRS 304.12-030 to define "replacement," "existing insurer," "replacing insurer," "existing life insurance policy or annuity contract," "financed purchase," and "direct-response solicitation"; provide that no replacing insurer shall issue a life policy or annuity contact in a replacement transaction to replace an existing policy or contract unless the replacing insurer agrees in writing with the insured that the policy or contract owner has the right to return a life insurance policy or annuity contract within thirty (30) days of delivery of policy or contract; provide that subsection (2) does not apply to group life insurance or group annuities where there is no direct solicitation of individuals by an insurance producer, does not apply to group life insurance and annuities used to fund prearranged funeral contracts, does not apply to policies or contracts used to fund certain plans as specified in paragraph (g), and does not apply where new coverage is provided under a life policy or contract and the cost is borne wholly by the insured's employer or by an association of which the insured is a member; and immediate annuities purchased with proceeds from an existing contract, and structured settlements.
Feb 19-introduced in House
Feb 20-to Banking and Insurance (H)
Mar 4-posted in committee
Mar 17-reported favorably, 1st reading, to Calendar with Committee Substitute
Mar 18-2nd reading, to Rules
Mar 23-recommitted to Appropriations and Revenue (H)