This bill amends Section 508.38 of the Iowa Code to clarify the applicability of the standard nonforfeiture law for individual deferred annuities in relation to contingent deferred annuities. Specifically, it states that the provisions of subsections 2 through 7 will not apply to contingent deferred annuities. However, it allows the commissioner of insurance to establish nonforfeiture benefits for these annuities through rules adopted under chapter 17A, provided that such benefits are deemed equitable to policyholders and appropriate for the associated risks.

Additionally, the bill modifies the language regarding the applicability of the section by stating that it shall not apply to certain types of annuities, including reinsurance and group annuities under retirement plans, while also specifying that the commissioner may set rules for contingent deferred annuities. This change aims to ensure that the regulation of contingent deferred annuities is more flexible and tailored to the specific risks involved, while still maintaining a level of oversight by the commissioner.

Statutes affected:
Introduced: 508.38