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S 857

Contingent Deferred Annuities

2025-2026 Regular Session Introduced by Ross Turner

South Carolina establishes regulatory standards for Contingent Deferred Annuities to protect consumers and insurers in the hybrid annuity-investment product market.

Effective date 08/16/26
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Bill Summary · S 857

Legislative bill overview

S 857 establishes a regulatory framework for Contingent Deferred Annuities (CDAs) in South Carolina, which are insurance products that combine annuity features with market-linked returns. The bill defines standards for how these products can be marketed, sold, and managed to protect consumers while allowing insurers to offer these hybrid investment vehicles.

Why is this important

CDAs represent a growing segment of the retirement savings market, but they operate in a regulatory gray area between traditional annuities and securities. Clear state regulation ensures consumers understand what they're purchasing, protects against misleading sales practices, and provides insurers with consistent operational guidelines across jurisdictions.

Potential points of contention

  • Consumer protection vs. product innovation: Stricter regulations may increase costs and limit product availability, potentially reducing options for investors seeking hybrid annuity-investment products
  • Disclosure requirements: Determining what information must be provided to consumers and how it's presented could create compliance burdens for insurers while potentially overwhelming unsophisticated buyers
  • Alignment with federal oversight: Clarifying whether CDAs fall under state insurance regulation, SEC securities rules, or both jurisdictions may create jurisdictional conflicts or regulatory gaps

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

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