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.

HB 2540 exempts contingent deferred annuities from most requirements of Kansas' standard nonforfeiture law for individual deferred annuities. This directly affects insurance companies selling these annuities and policyholders who purchase them. The bill allows the Kansas Insurance Commissioner to establish nonforfeiture benefits (protection if the insurer fails) for contingent deferred annuities through new rules, ensuring these rules are fair to policyholders, appropriate for the risks involved, and aligned with existing nonforfeiture standards where possible. The law removes these annuities from current regulatory requirements while giving the Commissioner authority to create tailored protections.