STATE OF NEW YORK
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5213
2011-2012 Regular Sessions
IN SENATE
May 3, 2011
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Introduced by Sen. SEWARD -- read twice and ordered printed, and when
printed to be committed to the Committee on Insurance
AN ACT to amend the insurance law, in relation to investments by chari-
table gift annuity corporations or associations
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision (b) of section 1110 of the insurance law, as
2 amended by chapter 419 of the laws of 2001, is amended to read as
3 follows:
4 (b) Every such domestic corporation or association shall maintain
5 admitted assets at least equal to the greater of (i) the sum of its
6 reserves on its outstanding agreements, calculated in accordance with
7 section four thousand two hundred seventeen of this chapter, and a
8 surplus of ten per centum of such reserves, or (ii) the amount of one
9 hundred thousand dollars. In determining such reserves a deduction shall
10 be made for all or any portion of an annuity risk which is reinsured by
11 a life insurance company authorized to do business in this state. The
12 required admitted assets shall be invested in accordance with the
13 prudent investor standard as defined in section 11-2.3 of the estates,
14 powers and trusts law and shall not be subject to the investment limita-
15 tions set forth in this chapter. Such assets shall be segregated as
16 separate and distinct funds, independent of all other funds of such
17 corporation or association, and shall not be applied to pay its debts
18 and obligations or for any purpose except the aforesaid annuity
19 benefits; provided however, the corporation or association may invest
20 and manage the admitted assets in combination with other assets of the
21 organization, provided further, that there is a separate custody account
22 for the interest of the admitted assets in any such combined fund.
23 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11425-01-1
