The hearing on HB 2540 was opened by Chairperson Dietrich. Revisor Eileen Ma gave an overview of the bill. (Attachment 1)

Elijah Gonillo testified via WebEx in support of the bill. (Attachment 2) He explained that the bill amends the standard nonforfeiture law governing individual deferred annuities to include contingent deferred annuities (CDA). A CDA protects investors in the contingency that their portfolio of investments fail and falls below a certain threshold. The amendment to statute exempts CDAs from traditional nonforfeiture requirements and grants the Insurance Commissioner the ability to create specific regulations pertaining to CDAs.

Chairperson Dietrich invited Erik Turek, Government Affairs Director for the Kansas Department of Insurance to speak to the bill (no testimony provided). Mr. Turek indicated that the department has no position on the bill. 

Written only, proponent testimony was also received from Alex Young of the American Council of Life Insurers. (Attachment 3)

Chairperson Dietrich closed the hearing on HB 2540.

Meeting adjourned at 9:48 a.m. Next meeting is scheduled for February 26, 2026.