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Bill > S2948
NJ S2948
NJ S2948Establishes requirements regarding processing of requests to surrender or annuitize matured annuities.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 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 the state, aiming to provide consumers with more control and clarity when they wish to access their funds or convert their annuity into a stream of income. Specifically, annuities will need to include provisions that guarantee insurers will disburse funds within 10 business days of a request to "surrender" (cancel and withdraw all funds, or partially withdraw funds) the annuity, and that owners have 90 days from the annuity's maturity date to request to "annuitize" (convert the annuity into guaranteed income payments) if the annuity has an automatic renewal feature. Furthermore, annuities must offer options for electronic disbursement of funds and allow requests to be submitted with a signature guarantee from a bank, and insurers must ensure that interest continues to accrue on annuities after a surrender or annuitization request is received, while also providing owners with contact information to track the status of their requests.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Commerce Committee (on 01/13/2026)
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/2026/S2948 |
| BillText | https://pub.njleg.gov/Bills/2026/S3000/2948_I1.HTM |
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