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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DP |
As Passed the House |
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X |
As Transmitted to the Governor |
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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.
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 May 2, 2002
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