WeVote
Log In

Bill

Bill

HB 2540

Exempting contingent deferred annuities from certain requirements of the standard nonforfeiture law for individual deferred annuities act and authorizing the commissioner of insurance to establish nonforfeiture benefits for such contingent deferred annuities through rules and regulations.

2025-2026 Regular Session

Kansas bill exempts contingent deferred annuities from statutory nonforfeiture protections, letting insurance regulators establish substitute rules instead.

Approved by Governor on Friday, March 20, 2026
#insurance
0
WeVote Research Nonpartisan
Bill Summary · HB 2540

Legislative bill overview

HB 2540 creates an exemption for contingent deferred annuities (CDAs) from Kansas's standard nonforfeiture law requirements that typically apply to individual deferred annuities. Instead of following statutory nonforfeiture rules, the bill allows the Insurance Commissioner to establish nonforfeiture benefits for CDAs through regulatory rules and regulations.

Why is this important

Nonforfeiture protections ensure that annuity holders retain some value in their contracts even if they surrender or stop paying premiums early. This bill shifts CDAs from rigid statutory protections to flexible regulatory standards, potentially reducing consumer guarantees while giving insurers more product design flexibility. The real-world impact depends entirely on what rules the Commissioner ultimately adopts.

Potential points of contention

  • Consumer protection reduction: Statutory nonforfeiture laws provide explicit, enforceable guarantees; regulatory rules can be easier to modify and may offer weaker protections depending on the Commissioner's interpretation
  • Regulatory uncertainty: Until rules are written, consumers and insurers won't know what protections actually apply to CDAs, creating a gap in defined protections
  • Defining "contingent deferred annuities": The bill doesn't appear to clearly define what qualifies as a CDA, potentially creating ambiguity about which products are exempt and which remain subject to standard protections

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

Sign in to ask a question.