South CarolinaS 0857126th General Assembly (2025-2026)Senate

AN ACT TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 38-1-20, RELATING TO INSURANCE LAW DEFINITIONS, SO AS TO DEFINE THE TERM "CONTINGENT DEFERRED ANNUITY"; BY AMENDING SECTION 38-69-220, RELATING TO EXCEPTIONS FROM OPERATION OF THE STANDARD NONFORFEITURE LAW FOR INDIVIDUAL DEFERRED ANNUITIES, SO AS TO ADD AN EXCEPTION FOR CERTAIN PROVISIONS OF THE STANDARD NONFORFEITURE LAW FOR INDIVIDUAL DEFERRED ANNUITIES, AND TO PROVIDE THE DEPARTMENT OF INSURANCE MAY PROMULGATE REGULATIONS FOR NONFORFEITURE BENEFITS FOR CONTINGENT DEFERRED ANNUITIES IN THE DISCRETION OF THE DIRECTOR OF THE DEPARTMENT IN CERTAIN CIRCUMSTANCES; AND BY AMENDING SECTION 38-44-20, RELATING TO DEFINITIONS IN THE MANAGING GENERAL AGENTS ACT, SO AS TO MAKE A CONFORMING CHANGE.

Sponsored By: Ross Turner (Republican)

Signed by Governor

Summary

Contingent Deferred Annuities

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 0 costs, 1 mixed.

Changes to contingent deferred annuity protections

Beginning 2026-08-16, South Carolina defines a “contingent deferred annuity.” It is an annuity that pays you for life only after your chosen investments, which the insurer does not hold, are depleted. The law removes these products from the state’s standard nonforfeiture rules. The Department of Insurance can set replacement nonforfeiture benefits by order or regulation. The department must find them fair to contract holders and suited to the risks. How much protection you get depends on future department rules and your contract.

Sponsors & Cosponsors

Sponsor

  • Ross Turner

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 149 • No: 0

House vote • 5/7/2026

(Contingent Deferred Annuities)Passage of Bill

Yes: 105 • No: 0

Senate vote • 2/18/2026

(Contingent Deferred Annuities)2nd Reading

Yes: 44 • No: 0

Actions Timeline

  1. Effective date 08/16/26

    6/5/2026legislature
  2. Act No. 178

    6/2/2026legislature
  3. Signed By Governor

    5/18/2026Governor
  4. Ratified R 157

    5/14/2026legislature
  5. Read third time and enrolled

    5/8/2026House
  6. Unanimous consent for third reading on next legislative day

    5/7/2026House
  7. Roll call Yeas-105 Nays-0

    5/7/2026House
  8. Read second time

    5/7/2026House
  9. Debate adjourned

    5/6/2026House
  10. Debate adjourned until Wed., 5-6-26

    5/5/2026House
  11. Committee report: Favorable Labor, Commerce and Industry

    4/30/2026House
  12. Referred to Committee on Labor, Commerce and Industry

    2/24/2026House
  13. Introduced and read first time

    2/24/2026House
  14. Read third time and sent to House

    2/19/2026Senate
  15. Roll call Ayes-44 Nays-0

    2/18/2026Senate
  16. Read second time

    2/18/2026Senate
  17. Committee Amendment Adopted

    2/18/2026Senate
  18. Committee report: Favorable with amendment Banking and Insurance

    2/12/2026Senate
  19. Referred to Committee on Banking and Insurance

    1/28/2026Senate
  20. Introduced and read first time

    1/28/2026Senate

Bill Text

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