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Minutes for HB2540 - Committee on Insurance
Short Title
Exempting contingent deferred annuities from certain requirements of the standard nonforfeiture law for individual deferred annuities act and authorizing the commissioner of insurance to establish nonforfeiture benefits for such contingent deferred annuities through rules and regulations.
Minutes Content for Mon, Feb 9, 2026
The Hearing on HB2540 was opened by the Chair.
Assistant Revisor Ma gave a brief overview of the bill and stood for questions. (Attachment 1)
HB2540, exempting contingent deferred annuities from certain requirements of the standard non-forfeiture law for individual deferred annuities act and authorizing the commissioner of insurance to establish non-forfeiture benefits for such contingent deferred annuities through rules and regulations.
Proponent testimony was provided virtually by Elijah Gonillo, Director, Actuary, Prudential Financial, Inc. Mr. Gonillo addressed Prudential Financials support for HB2540 noting that the bill is a targeted, technical amendment that aligns state law with the National Association of Insurance commissioners model by exempting Contingent Deferred Anunities (CDAs) from non-forfeiture requirements that are not well suited for them. Furthermore, the bill paves the way for CDAs to become available in Kansas. CDAs are one way to protect yourself from the longevity risk of running out of money in your lifetime; offers investors the ability to keep possession and control of heir assets; plus adds the guarantee of lifetime income if needed. All guarantees, however, are still subject to the insurer's ability to meet its claims obligations. The conferee stood for questions. (Attachment 2)
Written proponent testimony was provided by Alex Young, Senior Director, State Relations, American Council of Life Insurers (ACLI). wrote the language in the bill would ensure Kansas can approve and oversee the sale of contingent deferred annuities. (Attachment 3)
There were no neutrals or opponents present.
The hearing on HB2540 was closed by the Chair.
