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SF 2215

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 bill extends consumer protections requiring annuity cash value guarantees to contingent deferred annuities, standardizing policyholder safeguards across annuity types.

Signed by Governor.
#annuities #contracts #individualretirementaccounts #insurance #insurancedivision #retirementplans
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WeVote Research Nonpartisan
Bill Summary · SF 2215

Legislative bill overview

SF 2215 extends Iowa's standard nonforfeiture law—which protects consumers' accumulated values in deferred annuities—to apply to contingent deferred annuities (CDAs). Nonforfeiture laws ensure that if a policyholder stops paying premiums or surrenders their annuity, they retain certain minimum cash values rather than losing their investment entirely. This bill brings CDAs under the same consumer protection framework already applied to regular deferred annuities.

Why is this important

Contingent deferred annuities are increasingly complex financial products often used in estate planning and business contexts. Without explicit nonforfeiture protections, CDA holders could face situations where they lose accumulated value if circumstances change or they need to access funds early. Extending these protections clarifies consumer rights and aligns regulatory treatment across similar annuity products, reducing potential disputes and protecting policyholders from unfavorable contract terms.

Potential points of contention

  • Insurance industry compliance costs: Insurers selling CDAs may need to restructure products or reserve requirements to comply with nonforfeiture minimums, potentially increasing administrative burden and costs
  • Product design constraints: Nonforfeiture mandates could limit insurers' ability to offer specialized CDA structures or lower-premium products designed for specific estate planning purposes
  • Actuarial impact uncertainty: The financial implications of applying nonforfeiture protections to contingent products—where benefits depend on uncertain future events—may be difficult to predict and price accurately

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

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