insurance; rental cars
(NOW: annuity contracts;
free look)
DP |
Committee on Financial Institutions & Insurance |
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DP |
Caucus and COW |
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DP |
Third Read |
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X |
As Passed the House |
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SB 1098 establishes that the ten day return and refund (free-look) provision relating to annuity contracts is not applicable to settled annuity contracts issued to original contract holders at the time of annuitization.
SB 1098 passed out of the Financial Institutions and Insurance Committee unamended.
Arizona law provides consumers with a time frame of ten days to review and cancel an annuity contract and receive a refund for the full amount invested in the annuity. This is also known as a “free-look.” At the expiration of the free-look period, the contract is binding. There are some existing annuities sold to education and non-profit communities that have a first and second phase of an annuity contract. A first and second phase annuity is not a common product available to the general public and therefore is not addressed in the free-look provision of law. The proposed legislation clarifies that the free-look provision is applicable for the initial contract only and does not apply to settled annuity contracts at the time of annuitization.
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Establishes that the ten-day return and refund
(free-look) provision for annuity contracts is not applicable to settled
annuity contracts issued to original contract holders at the time of
annuitization.
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45th Legislature
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Second Regular Session 2 April 25, 2002
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