Bill Text: NY A07152 | 2017-2018 | General Assembly | Amended
Bill Title: Relates to annuity dividend reinvestment of certain individual or group participating annuity contracts.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2017-09-12 - signed chap.297 [A07152 Detail]
Download: New_York-2017-A07152-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 7152--A 2017-2018 Regular Sessions IN ASSEMBLY April 10, 2017 ___________ Introduced by M. of A. OTIS, McDONALD -- read once and referred to the Committee on Insurance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the insurance law, in relation to annuity dividend rein- vestment The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph 6 of subsection (b) of section 4231 of the insur- 2 ance law is amended to read as follows: 3 (6) In the case of any individual term policy and of every individual 4 participating annuity, other than an annuity described in paragraph 5 eight of this subsection, or pure endowment contract, the dividends so 6 apportioned shall be applicable, at the election of the holder of such 7 policy or contract, in accordance with the options specified in subpara- 8 graph (A) or (B) of paragraph one [hereof] of this subsection or if the 9 policy or contract so provides, subparagraph (D) of paragraph one [here-10of] of this subsection. In the case of any such term policy or annuity 11 or pure endowment contract, the requirement as to notice of election 12 hereinbefore specified shall be applicable, but the option which shall 13 be applied in case the holder of such contract fails to make such 14 election shall be determined by the company with the approval of the 15 superintendent. 16 § 2. Paragraph 7 of subsection (b) of section 4231 of the insurance 17 law is amended to read as follows: 18 (7) In the case of any participating group policy of life insurance or 19 any participating group or blanket policy of accident and health insur- 20 ance, or of any participating group annuity contract, other than an 21 annuity described in paragraph eight of this subsection, the dividend so 22 apportioned shall, at the option of the policyholder or holder of the 23 master contract, be applied pursuant to subparagraph (A) or (B) of para- 24 graph one [hereof] of this subsection. Any dividend so apportioned on EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06792-07-7A. 7152--A 2 1 any such participating group insurance policy, or any rate reduction 2 made or continued on any non-participating group insurance policy for 3 the first or any subsequent year of insurance under any such policy 4 issued to an employer, may be applied to reduce the employer's part of 5 the cost of such policy, except that the excess, if any, of the employ- 6 ees' aggregate contribution under the policy over the net cost of the 7 insurance shall be applied by the employer for the sole benefit of the 8 employees. 9 § 3. Subsection (b) of section 4231 of the insurance law is amended by 10 adding a new paragraph 8 to read as follows: 11 (8) In the case of any individual or group participating immediate 12 annuity and of any individual or group participating deferred annuity in 13 which each consideration paid into the annuity purchases guaranteed 14 paid-up annuity benefits determined at the time the consideration is 15 paid, the dividend so apportioned shall be applicable, at the election 16 of the holder of the individual contract or group certificate, in 17 accordance with the options specified in subparagraph (A), (B) or (C) of 18 paragraph one of this subsection or if the contract or certificate so 19 provides, subparagraph (D) of paragraph one of this subsection. 20 § 4. This act shall take effect immediately.
