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Bill

SSB 3064

A bill for an act relating to the applicability of the standard nonforfeiture law for individual deferred annuities to contingent deferred annuities.

2025-2026 Regular Session

Iowa law extends standard consumer protections for annuity surrender values to contingent deferred annuities, a specialized insurance product with condition-dependent benefits.

Committee report approving bill, renumbered as SF 2215.
#annuities #contracts #individualretirementaccounts #insurance #insurancedivision #retirementplans
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Bill Summary · SSB 3064

Legislative bill overview

SSB 3064 modifies Iowa's insurance regulations to apply standard nonforfeiture law protections to contingent deferred annuities (CDAs), which are insurance products that provide income if specific conditions are met. Currently, these products may not be subject to the same consumer protection requirements as traditional deferred annuities, creating a regulatory gap.

Why is this important

Nonforfeiture laws protect consumers by ensuring they retain some value in their annuity contracts even if they surrender or fail to meet contractual obligations. Extending these protections to CDAs affects consumer rights for a growing segment of annuity products and clarifies regulatory expectations for insurance companies selling these instruments.

Potential points of contention

  • Product definition clarity: The bill's effectiveness depends on how precisely "contingent deferred annuities" are defined; ambiguous language could create loopholes or unintended coverage of products not originally intended.
  • Insurance industry compliance costs: Applying nonforfeiture requirements to CDAs may increase administrative and actuarial costs for insurers, potentially affecting product pricing and availability.
  • Consumer understanding: CDAs are complex products; expanding protections only works if consumers understand these rights, which may require additional disclosure requirements not addressed in this bill.

Compiled from official sources — confirm details with the bill’s official record.

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