Bill Text: NY A00694 | 2023-2024 | General Assembly | Introduced

New York Assembly Bill 694

Introduced

Bill Title: Reduces the minimum nonforfeiture interest rate for annuities from one percent to one half of one percent for annuities during the surrender charge period, and from one percent to fifteen hundredths of one percent during any contract period with no surrender charge.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2024-01-03 - referred to insurance [A00694 Detail]

Download: New_York-2023-A00694-Introduced.html




                STATE OF NEW YORK
        ________________________________________________________________________

                                           694

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    January 11, 2023
                                       ___________

        Introduced  by M. of A. HUNTER, LUPARDO -- read once and referred to the
          Committee on Insurance

        AN ACT to amend the insurance law, in relation to modifying the interest
          rate within the standard nonforfeiture law for annuities

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section 1. Item (iii) of subparagraph (F) of paragraph 2 of subsection
     2  (c)  of  section 4223 of the insurance law, as amended by chapter 170 of
     3  the laws of 2008, is amended to read as follows:
     4    (iii) where the resulting minimum guaranteed interest rate is not less
     5  than one half of one percent for any contract with a premium charge  and
     6  for  contracts without premium charges during any contract period with a
     7  surrender charge, and not less than fifteen hundredths  of  one  percent
     8  during any contract period with no surrender charge.  The minimum annual
     9  effective  rate of interest at issue shall be specified in the contract.
    10  The basis and calculation for setting the minimum annual effective  rate
    11  of  interest  at issue of a contract shall be filed with the superinten-
    12  dent. If the contract provides that the minimum annual effective rate of
    13  interest may be redetermined, the redetermination  date,  basis,  calcu-
    14  lation and period shall be stated in the contract. The basis is the date
    15  or average over a specified period that produces the values of the five-
    16  year  constant maturity treasury rate to be used at each redetermination
    17  date or at issue.
    18    § 2. This act shall take effect immediately.



         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03375-01-3