Bill
Bill > S4129
NJ S4129
Establishes requirements regarding processing of requests to surrender or annuitize matured annuities.
summary
Introduced
02/10/2025
02/10/2025
In Committee
02/10/2025
02/10/2025
Crossed Over
Passed
Dead
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill establishes requirements regarding the processing of requests to surrender or annuitize matured annuities. Under the bill, an annuity negotiated or sold to a consumer, with certain exceptions, will not be delivered, issued, executed, or renewed in this State unless the annuity includes a provision stating: (1) that an insurer will disburse the annuity's funds to the owner within 10 business days of receiving a request by the owner to surrender the annuity; and (2) that the owner will have 90 calendar days from the annuity's maturity date to submit a request to annuitize the annuity, if the annuity also contains a provision allowing it to automatically renew after a certain period of time. Additionally, the bill provides that an annuity negotiated or sold to a consumer, with certain exceptions, will not be delivered, issued, executed, or renewed in this State unless the annuity includes an option to: (1) electronically disburse funds from the annuity to the owner, if the owner submits a request to the insurer to surrender or annuitize the annuity; and (2) provide an option for the owner to submit a request to surrender or annuitize the annuity to the insurer with a signature guarantee issued by a State or federally chartered bank. Further, the bill provides that an insurer must ensure that any interest being earned on an annuity will continue to be earned after a request is received from the owner to surrender or annuitize the matured annuity. The bill also requires an insurer to provide the owner of an annuity with a phone number and email address of a representative that the owner may contact to inquire about the status of their request to surrender or annuitize their matured annuity.
AI Summary
This bill establishes new requirements for annuities sold in New Jersey, aimed at protecting consumers by mandating specific provisions and protections for annuity owners. The bill defines key terms like "annuitize" (converting a matured annuity into guaranteed income payments) and "surrender" (canceling and withdrawing funds from an annuity). It requires that annuities include provisions giving owners 90 calendar days from the maturity date to request annuitization if the annuity can automatically renew, and mandates that insurers disburse annuity funds within 10 business days of a surrender request. Additionally, the bill requires annuities to offer electronic fund disbursement and the option to submit surrender requests with a signature guarantee from a state or federal bank. Insurers must also provide a contact phone number and email address for owners to inquire about their surrender or annuitization requests, and ensure that any interest being earned on the annuity continues to accrue after a surrender or annuitization request is received. These provisions apply to most annuities sold in the state, with some exceptions, and are designed to provide more transparency and consumer-friendly terms in annuity contracts.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Commerce Committee (on 02/10/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/S4129 |
| BillText | https://pub.njleg.gov/Bills/2024/S4500/4129_I1.HTM |
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