Virginia Senate Bill SB166

Virginia 2026 Regular Session

• Introduced: 1/7/26
• Refer: 1/7/26
• Report Pass: 1/26/26
• Engrossed: 1/29/26
• Refer: 2/4/26
• Report Pass: 2/26/26
• Enrolled: 3/9/26
• Chaptered: 4/8/26
• Passed: 4/8/26

Caption

Insurance; contingent deferred annuities, nonforfeiture benefits.

Impact

The impact of SB166 on state laws includes the streamlining of regulations regarding annuities, particularly contingent deferred annuities. The clear definition and guidelines set forth in the bill are expected to enhance consumer protection while providing a framework that insurers can follow more easily. Overall, this is aimed at fostering a more robust insurance market within Virginia, reducing ambiguities that could hinder investment and economic growth in this sector.

Summary

SB166 is an act that amends and reenacts sections of the Code of Virginia relating to insurance and specifically focuses on contingent deferred annuities. This type of annuity establishes a life insurer's obligation to make periodic payments only upon the depletion of designated investments. The bill provides developers and insurers clarity regarding their obligations and the definitions around such financial products.

Sentiment

The sentiment surrounding SB166 appears to be largely positive, especially among insurance professionals and advocates for financial products. Supporters argue that the bill will strengthen the annuity market by providing necessary protections to consumers while clarifying insurers' responsibilities. However, there may be concerns from consumer advocacy groups regarding the potential for oversights if regulations are not stringently enforced.

Contention

Notable points of contention regarding SB166 may arise related to the balance between regulatory protection and market flexibility. While the bill aims to clarify the structure of contingent deferred annuities, some stakeholders might argue about the adequacy of the nonforfeiture benefits specified within the bill. Additionally, discussions may center on how effectively these new definitions will safeguard consumers without stifling innovation within the financial services sector.