2023 Texas Statutes › Vernon's Civil Statutes › Title 109 - Pensions › Article 6228a-5. Annuities or Investments for Certain Public Employees; Salary Reductions › Section 11.

Sec. 11.  (a)  A person who offers to sell an annuity contract that is or will likely be the subject of a salary reduction agreement shall provide notice to a potential purchaser as provided by this section.
(b)  Repealed by Acts 2019, 86th Leg., R.S., Ch. 203 (H.B. 2820), Sec. 1.10(6), eff. September 1, 2019.
(c)  The notice required under this section must be uniform and:
(1)  be in at least 14-point type;
(2)  contain spaces for:
(A)  the name, address, and telephone number of the agent and company offering the annuity contract for sale;
(B)  the name, address, and telephone number of the company underwriting the annuity;
(C)  the license number of the person offering to sell the product;
(D)  the name of the state agency that issued the person's license;
(E)  the name of the company account representative who has the authority to respond to inquiries or complaints; and
(F)  with respect to fixed annuity products:
(i)  the current interest rate or the formula used to calculate the current rate of interest;
(ii)  the guaranteed rate of interest and the percentage of the premium to which the interest rate applies;
(iii)  how interest is compounded;
(iv)  the amount of any up-front, surrender, withdrawal, deferred sales, and market value adjustment charges or any other contract restriction that exceeds 10 years;
(v)  the time, if any, the annuity is required to be in force before the purchaser is entitled to the full bonus accumulation value;
(vi)  the manner in which the amount of the guaranteed benefit under the annuity is computed;
(vii)  whether loans are guaranteed to be available under the annuity;
(viii)  what restrictions, if any, apply to the availability of money attributable to the value of the annuity once the purchaser is retired or separated from the employment of the employer;
(ix)  the amount of any other fees, costs, or penalties;
(x)  whether the annuity guarantees the participant the right to surrender a percentage of the surrender value each year, and the percentage, if any; and
(xi)  whether the annuity guarantees the interest rate associated with any settlement option; and
(3)  state, in plain language:
(A)  that the company offering the annuity must comply with Section 6 of this Act and that the annuity must be a qualified investment product;
(B)  the civil remedies available to the employee;
(C)  that the employee may purchase any eligible qualified investment through a salary reduction agreement;
(D)  the name and telephone number of the Texas Department of Insurance division that specializes in consumer protection; and
(E)  the name and telephone number of the attorney general's division that specializes in consumer protection.
(d) A variable annuity must be accompanied by:
(1) a notice that includes any item listed in Subsection (c) of this section that is applicable to variable annuities;
(2) the prospectus;  and
(3) any other purchasing information required by law.
(e) An equity-based index contract must state in plain language how the annuity contract will be credited with growth.
(f) If a notice and other information required under this section is not provided, any annuity contract for which the notice is required is voidable at the discretion of the purchaser.  Not later than the 30th day after the date an employee notifies the seller in writing of the employee's election to void the contract, the seller shall refund to the employee:
(1) the amount of all consideration paid to the purchaser;  and
(2) 10 percent interest up to the date the employee provides the notice to the seller.
(g) A seller who receives a refund request under this section is not required to make a refund otherwise required by this section if, not later than the 30th day after the date the seller receives a request for a refund from the employee, the seller provides a copy of the notice signed by the employee.