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  H.B. No. 1032
 
 
 
 
AN ACT
  relating to a rescission period for annuity contracts.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle A, Title 7, Insurance Code, is amended
  by adding Chapter 1116 to read as follows:
  CHAPTER 1116. REQUIRED PROVISIONS FOR ANNUITY CONTRACT
         Sec. 1116.001.  DEFINITION. In this chapter, "annuity"
  means a fixed, variable, or modified guaranteed annuity that is
  individually solicited, whether classified as an individual
  annuity or group annuity.
         Sec. 1116.002.  RESCISSION PERIOD REQUIRED. (a)  A fixed
  annuity contract must provide that, for a period of at least 20 days
  after the date the contract is delivered, the purchaser may rescind
  the contract and receive an unconditional refund of premiums paid
  for the contract, including any contract fees or charges.
         (b)  Except as provided by Subsection (c), a variable or
  modified guaranteed annuity contract must provide that, for a
  period of at least 20 days after the date the contract is delivered,
  the purchaser may rescind the contract and receive an unconditional
  refund that is equal to the cash surrender value provided in the
  contract plus any fees or charges deducted from the premiums or
  imposed under the contract.
         (c)  Subsection (b) does not apply to an annuity contract if
  the prospective owner is an accredited investor, as defined by 17
  C.F.R. Section 230.501(a) as adopted by the United States
  Securities and Exchange Commission.
         SECTION 2.  The change in law made by this Act applies only
  to an annuity contract delivered or issued for delivery on or after
  January 1, 2012. A contract delivered or issued for delivery before
  January 1, 2012, is governed by the law in effect immediately before
  the effective date of this Act, and that law is continued in effect
  for that purpose.
         SECTION 3.  This Act takes effect September 1, 2011.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1032 was passed by the House on April
  7, 2011, by the following vote:  Yeas 144, Nays 0, 1 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 1032 was passed by the Senate on May
  6, 2011, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor