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Rep. Gagnon says bill would let insurers sell contingent deferred annuities as retirement safety net
Summary
At the Banking and Insurance Subcommittee meeting, Rep. Gagnon said S.857 would allow life insurers to sell contingent deferred annuities and exempt those products from the state's non-forfeiture statute while giving the Department of Insurance authority to set equitable non-forfeiture benefits for contract holders. The committee favorably reported the bill to the floor; vote tally was not specified.
Representative Gagnon told the committee that S.857 "allows life insurance companies to sell contingent deferred annuities in the state, which is simply a safety net for retirement programs, portfolios, etcetera." He described a contingent deferred annuity as one paid by an insurer for the annuitant's life when market losses exhaust an external investment account to a contractually defined level.
Gagnon said the bill would exempt contingent deferred annuities from the state's non-forfeiture statute and instead "allow the Department of Insurance to establish non forfeiture benefits that are equitable to the contract holder," giving the department discretion to set benefits aligned with the product's design. The representative framed the measure as a consumer and market protection that makes a specific annuity design available under state law.
There was no extended debate. The committee moved, seconded and voted by show of hands to give S.857 a favorable report to the floor of the House; the transcript records the outcome but does not provide a roll-call tally.
The measure now proceeds to a floor vote; the committee made no amendments on the record and no additional fiscal or implementation details were discussed.
