Bill description: HB 526 imposes new regulations on the advertising and terms of annuities.
Does it give government any new, additional, or expanded power to prohibit, restrict, or regulate activities in the free market? Conversely, does it eliminate or reduce government intervention in the market?
HB 526 forbids issuers of "interest-issued annuity contracts" from advertising "interest indexed annuity contracts, regardless of the advertising medium, without prior approval of such advertisement from the director [of the Department of Insurance]." This is a prior restraint on commercial speech.
HB 526 mandates that no annuity be sold in this state if it contains "surrender charges that persist past ten (10) years from the time of deposit" or "surrender charges that exceed ten percent (10%) in the first year and decrease one percent (1%) per year in subsequent years."
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