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HB 788 - Life insurance; certain annuities; amend provisions

Rice, Tom R (79th)	Holland, Ray (157th)	Randall, William (Billy) C (127th)
Bannister, Charles E (77th)	Scott, James A (165th)	Heard, Keith G (89th)

Status Summary	HC:	Ins	SC:	I&L	FR:	02/24/99	LA:	04/27/99	Signed by Governor

First Reader Summary

A BILL to amend Title 33 of the Official Code of Georgia Annotated, relating to insurance, so as to change certain provisions relating to required life insurance policy provisions; to change certain provisions relating to standard provisions for annuity contracts; and for other purposes.

HB 788                                            LC 25 1380S 
 
 
 
 
 
 
                        A BILL TO BE ENTITLED 
                               AN ACT 
 
 
  1- 1  To amend Chapter 28 of Title 33 of the Official Code of 
  1- 2  Georgia Annotated, relating to annuity and pure endowment 
  1- 3  contracts, so as to change certain provisions relating to 
  1- 4  standard provisions for annuity contracts; to change certain 
  1- 5  provisions relating to standard nonforfeiture provisions for 
  1- 6  individual deferred annuities; to provide for applicability; 
  1- 7  to repeal conflicting laws; and for other purposes. 
 
  1- 8       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 
 
  1- 9                           SECTION 1. 
 
  1-10  Chapter 28 of Title 33 of the Official Code of Georgia 
  1-11  Annotated, relating to annuity and pure endowment contracts, 
  1-12  is amended by adding to subsection (b) of Code Section 
  1-13  33-28-2, relating to standard provisions for annuity 
  1-14  contracts, a new paragraph (8) to read as follows: 
 
  1-15      "(8) Payment of certain claims. For any cash refund 
  1-16      annuity, refund annuity, or any other annuity which 
  1-17      provides for a lump sum settlement upon the death of the 
  1-18      annuitant, a provision that interest shall be payable on 
  1-19      the amount of such lump sum settlement in the same 
  1-20      manner, at the same rate, and subject to the same 
  1-21      conditions as provided by Code Section 33-25-10 for 
  1-22      payment of interest on proceeds or payments under an 
  1-23      individual policy of life insurance." 
 
  1-24                           SECTION 2. 
 
  1-25  Said chapter is further amended by striking paragraph (2) of 
  1-26  subsection (c) of Code Section 33-28-3, relating to standard 
  1-27  nonforfeiture provisions for individual deferred annuities, 
  1-28  and inserting in lieu thereof the following: 
 
  1-29      "(2) If a contract provides for a lump sum settlement at 
  1-30      maturity or at any other time, that upon surrender of 
  1-31      the contract at or prior to the commencement of any 
  1-32      annuity payments, the company will pay in lieu of any 
  1-33      paid-up annuity benefit a cash surrender benefit of such 
 
 
 
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  2- 1      amount as is specified in subsections (e) through (h) 
  2- 2      and (j) of this Code section and that interest shall be 
  2- 3      payable on such amount in the same manner, at the same 
  2- 4      rate, and subject to the same conditions as provided by 
  2- 5      Code Section 33-25-10 for payment of interest on 
  2- 6      proceeds or payments under an individual policy of life 
  2- 7      insurance.  The company shall reserve the right to defer 
  2- 8      the payment of the cash surrender benefit for a period 
  2- 9      of six months after demand for the benefit with 
  2-10      surrender of the contract;" 
 
  2-11                           SECTION 3. 
 
  2-12  This Act shall apply to contracts issued, delivered, or 
  2-13  issued for delivery on or after the date this Act becomes 
  2-14  effective. 
 
  2-15                           SECTION 4. 
 
  2-16  All laws and parts of laws in conflict with this Act are 
  2-17  repealed. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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