Texas HB4386 amends the Insurance Code to regulate the replacement of life insurance and annuity contracts, including interest payments and timelines.

Texas HB4386 amends the Insurance Code to establish rules for the replacement of life insurance and annuity contracts. The bill mandates that existing insurers pay interest at an annual rate of 18 percent on unpaid amounts, accruing from the 31st day until the payment is made in full. It also requires insurers to acknowledge receipt of replacement notices within 5 business days and to send payments within 30 days. These provisions apply to contracts transferred or surrendered on or after January 1, 2026. The act takes effect September 1, 2025.

Texas HB4386 amends the Insurance Code to regulate the replacement of life insurance and annuity contracts, including interest payments and timelines.

Texas HB4386 amends the Insurance Code to establish rules for the replacement of life insurance and annuity contracts. The bill mandates that existing insurers pay interest at an annual rate of 18 percent on unpaid amounts, accruing from the 31st day until the payment is made in full. It also requires insurers to acknowledge receipt of replacement notices within 5 business days and to send payments within 30 days. These provisions apply to contracts transferred or surrendered on or after January 1, 2026. The act takes effect September 1, 2025.