South CarolinaSouth Carolina law defines annuities tied to investments and permits protections
Since August 16, 2026, South Carolina law defines these lifetime-payment contracts and lets the insurance department set protections for their holders.
What it does
The law defines a contingent deferred annuity as a contract requiring lifetime payments when designated investments reach a depletion level set in the contract. The insurer does not hold those investments.
Contingent deferred annuities are exempt from certain individual annuity payment-protection rules. The Department of Insurance may set protections for holders by order or regulation.
Argument forThe department could set protections suited to these contracts, which may help holders when their designated investments reach the contract’s depletion level.
Argument againstBecause the director chooses whether to set payment protections, holders could have no added protections under this law unless the department acts.
More detail
South Carolina law defines a contingent deferred annuity as a contract that obligates a life insurer to make lifetime payments when designated investments reach a set depletion level. The definition covers contracts that promise periodic payments for the annuitant’s lifetime. The investments are not owned or held by the insurer. The depletion must result from withdrawals, market performance, fees, or other charges allowed by the contract. The law took effect August 16, 2026.
The law exempts contingent deferred annuities from specified individual annuity payment-protection rules and allows the Department of Insurance to set protections by order or regulation. The exemption covers Sections 38-69-230 through 38-69-280 for contingent deferred annuities. The director may set protections the director considers fair to contract holders and appropriate for the insured risks, and consistent as far as possible with the article’s general purpose. The law took effect August 16, 2026.
Where do you stand?
Choose your position
Tell your reps
Take a position to see your representatives and ways to contact them.
Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Jun 5Effective date 08/16/26Latest
- Jun 2Act No. 178
- May 18Signed By Governor Henry McMasterBecame Law
- May 14Ratified R 157
- May 8Read third time and enrolledTo Governor
- May 7Unanimous consent for third reading on next legislative day
- Vote recorded Passage of Bill. Result: pass.Lower
- May 7Roll call Yeas-105 Nays-0
- May 7Read second timeMinor
- May 6Debate adjourned
- May 5Debate adjourned until Wed., 5-6-26
- Apr 30Committee report: Favorable Labor, Commerce and IndustryMinor
- Feb 24Referred to Committee on Labor, Commerce and IndustryMinor
- Feb 24Introduced and read first timeMinor
- Feb 19Read third time and sent to HousePassed 1st Chamber
- Feb 18Roll call Ayes-44 Nays-0
- Vote recorded 2nd Reading. Result: pass.Upper
- Feb 18Read second timeMinor
- Feb 18Committee Amendment AdoptedMajor
- Feb 12Committee report: Favorable with amendment Banking and InsuranceMinor
- Jan 28Referred to Committee on Banking and InsuranceMinor
- Jan 28Introduced and read first timeIntroduced
Consumer Protection