(1) An annuity may not charge a surrender penalty on an annuity contract after 10 years from:
- (a) the date of issuance; or
- (b) for contracts for which the annuitant voluntarily deposits a separate premium that was not required under the annuity contract, the date of each separate annuity premium deposit. Within 10 years after the separate deposit, the insurer may charge a surrender penalty for that deposit.
- (2) An insurer must provide written notice to the annuitant of any surrender penalty imposed under the contract, including subsequent notices if the annuitant voluntarily contributes separate premium deposits under subsection (1)(b).
- (3) For purposes of this section, the term "surrender penalty" means a surrender penalty, fee, or charge for the early withdrawal of funds from an annuity contract or for the cancellation of the annuity contract.
- (4) This section applies to any annuity contract, including but not limited to annuity contracts under Title 30, chapter 10.
History: En. Sec. 1, Ch. 177, L. 2017.