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Bill

Bill

SB 1823

Relating to the replacement transactions of certain life insurance and annuity contracts from an insurer to a replacing insurer.

89th Legislature (2025) Introduced by Tan Parker

SB 1823 establishes regulatory standards for life insurance and annuity policy replacements between insurers, protecting consumers and standardizing procedures for contract transfers.

Referred to Business & Commerce
#insurance--insurers&agents(i0425) #insurance--life&annuities(i0423)
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Bill Summary · SB 1823

Legislative bill overview

SB 1823 establishes regulatory procedures and requirements governing the replacement of life insurance and annuity contracts when customers transfer policies from one insurer to another. The bill likely sets standards for disclosure, consumer protections, and insurer obligations during these replacement transactions to ensure fair treatment and transparency.

Why is this important

Policy replacements represent significant financial decisions for consumers, involving potential fees, coverage changes, and tax implications. Clear regulatory frameworks protect consumers from predatory replacement practices while ensuring insurers follow standardized procedures that reduce disputes and fraud in the $1+ trillion U.S. life insurance market.

Potential points of contention

  • Consumer vs. insurer protections: Stricter replacement requirements may increase administrative costs insurers pass to consumers, or conversely, lighter regulations may leave consumers vulnerable to misleading sales practices
  • Scope definition: Disagreement over which transactions qualify as "replacements" versus new sales affects regulatory applicability and compliance burdens
  • Interstate consistency: Texas rules may conflict with how other states regulate replacements, creating compliance complexity for multi-state insurers

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

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