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S00811 Summary:

S00811 Actions:

S00811 Committee Votes:

S00811 Floor Votes:

S00811 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           811
 
                               2023-2024 Regular Sessions
 
                    IN SENATE
 
                                     January 6, 2023
                                       ___________
 
        Introduced  by  Sen. BRESLIN -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules
 
        AN ACT to amend the insurance law, in relation to annuity benefits
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Subparagraph  (E)  of  paragraph  1  of subsection (a) of
     2  section 4223 of the insurance law, as amended by a chapter of  the  laws
     3  of  2022  amending  the  insurance  law relating to authorizing dividend
     4  paying deferred income  annuities,  as  proposed  in  legislative  bills
     5  numbers S.  7744-A and A. 9128-A, is amended to read as follows:
     6    (E) (i) Except as provided in [clause] item (ii) of this subparagraph,
     7  a  statement that the annuity benefits at the time of their commencement
     8  will not be less than those that would be provided by the application of
     9  an amount, hereinafter defined, to  purchase  any  single  consideration
    10  immediate  annuity  contract  offered  by the company at the time to the
    11  same class of annuitants. For  contracts  that  provide  cash  surrender
    12  benefits, such amount shall be the greater of the cash surrender benefit
    13  or  ninety-five  percent  of what the cash surrender benefit would be if
    14  there were no withdrawal charge. For contracts that do not provide  cash
    15  surrender  benefits, such amount shall be the present value of the paid-
    16  up annuity benefit  provided  under  the  contract  in  accordance  with
    17  subsection (d) of this section.
    18    (ii)  For  paid-up  deferred annuity contracts in which each consider-
    19  ation paid into the contract purchases guaranteed paid-up annuity  bene-
    20  fits  determined at the time the consideration is paid, a statement that
    21  the annuity benefits at the time each consideration is paid will not  be
    22  less than those that would be provided by the application of the consid-
    23  eration  to current purchase rates for new sales of such contract or any
    24  comparable paid-up deferred annuity contract offered by the  company  at
    25  that  time  to  the same class of annuitants. For purposes of this item,
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04041-01-3
        S. 811                              2
 
     1  dividends applied to purchase paid-up additions to the contract shall be
     2  treated as considerations paid into the contract. [This statement]
     3    (iii)  The statements set forth in items (i) and (ii) of this subpara-
     4  graph shall not affect  the  amount  of  any  benefits  required  to  be
     5  provided under any other provision of this section.
     6    §  2.  This  act  shall  take  effect on the same date and in the same
     7  manner as a chapter of the laws  of  2022  amending  the  insurance  law
     8  relating  to  authorizing  dividend paying deferred income annuities, as
     9  proposed in legislative bills numbers S. 7744-A  and  A.  9128-A,  takes
    10  effect.