California New Rule and North American

[KINGBICHO]

What is this about this new rule or law that is going thru California that is affecting the annuity market? I know north American life has pulled some annuity products away from this state

 

[DHK]

I have no idea what you're talking about.

 

[donamese]

California Assembly Bill 2884

 

[DHK]

Ah... here we go:

http://www.uuinc.com/news/NA annuity changes ca.pdf

Here's the bill:

http://www.leginfo.ca.gov/pub/15-16/bill/asm/ab_2851-2900/ab_2884_bill_20160608_amended_sen_v97.pdf

(7) Existing law provides that for the purpose of determining certain
benefits, that in the case of annuity contracts under which an election
may be made to have annuity payments commence at optional maturity
dates, the maturity date shall be deemed to be the latest date for which
election is permitted by the contract.

This bill would add that in the case of annuity contracts under which
the fixed maturity date is later than the later of the anniversary of the
contract next following the annuitant’s 70th birthday or the 10th
anniversary of the contract, the maturity date shall be deemed to be the
later of the anniversary of the contract next following the annuitant’s
70th birthday or the 10th anniversary of the contract.

Looks like issuance of annuities may be limited to age 70 going forward? Eh... I'm not going to spend a lot of time on that. We'll just see what happens.

 

[VolAgent]

Ah... here we go:

http://www.uuinc.com/news/NA annuity changes ca.pdf

Here's the bill:

http://www.leginfo.ca.gov/pub/15-16/bill/asm/ab_2851-2900/ab_2884_bill_20160608_amended_sen_v97.pdf



Looks like issuance of annuities may be limited to age 70 going forward? Eh... I'm not going to spend a lot of time on that. We'll just see what happens.

It says later. So it looks like no more than 10 years for anyone 70+.