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 risks involved.

Additionally, the bill modifies the language regarding the applicability of the section by specifying that it shall not apply to certain types of annuities, including reinsurance and group annuities under retirement plans, while also excluding contracts delivered outside the state. The changes aim to ensure that the regulation of contingent deferred annuities is more flexible and tailored to the specific risks associated with these financial products.

Statutes affected:
Introduced: 508.38