WeVote
Log In

Bill

Bill

H 5094

Contingent Deferred Annuities

2025-2026 Regular Session Introduced by Randy Ligon

South Carolina bill authorizes insurance companies to sell Contingent Deferred Annuities, retirement products with variable payouts based on specific market or performance conditions rather than guaranteed returns.

Referred to Committee on Labor, Commerce and Industry
0
WeVote Research Nonpartisan
Bill Summary · H 5094

Legislative bill overview

H 5094 allows insurance companies to offer Contingent Deferred Annuities (CDAs), a retirement product where payouts are contingent on specific conditions or market performance rather than guaranteed. The bill modifies South Carolina's insurance regulations to permit this new annuity product type and establish the regulatory framework governing their sale and administration.

Why is this important

CDAs could provide consumers with alternative retirement income options that potentially offer higher returns than traditional fixed annuities, but with variable payouts tied to market conditions or other contingencies. This affects retirement security for South Carolinians and expands insurance product offerings, though it also introduces greater complexity and risk variability compared to guaranteed products.

Potential points of contention

  • Consumer protection concerns: CDAs are more complex products; unclear whether existing disclosure and suitability requirements adequately protect consumers from misunderstanding contingency terms
  • Regulatory clarity: The bill lacks publicly available detail on what specific contingencies are permitted and how insurers' reserves must be maintained to cover obligations
  • Market risk shifting: Unlike guaranteed annuities, CDAs shift investment and longevity risk to consumers; retirees may face reduced income if contingent events don't occur as expected

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

Sign in to ask a question.