STATE OF NEW YORK
________________________________________________________________________
2525--B
Cal. No. 674
2017-2018 Regular Sessions
IN SENATE
January 13, 2017
___________
Introduced by Sen. SEWARD -- read twice and ordered printed, and when
printed to be committed to the Committee on Insurance -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee -- reported favorably from said committee, ordered
to first and second report, amended on second report, ordered to a
third reading, and to be reprinted as amended, retaining its place in
the order of third reading
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-
10 of] 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06792-06-7
S. 2525--B 2
1 annuity described in paragraph eight of this subsection, the dividend so
2 apportioned shall, at the option of the policyholder or holder of the
3 master contract, be applied pursuant to subparagraph (A) or (B) of para-
4 graph one [hereof] of this subsection. Any dividend so apportioned on
5 any such participating group insurance policy, or any rate reduction
6 made or continued on any non-participating group insurance policy for
7 the first or any subsequent year of insurance under any such policy
8 issued to an employer, may be applied to reduce the employer's part of
9 the cost of such policy, except that the excess, if any, of the employ-
10 ees' aggregate contribution under the policy over the net cost of the
11 insurance shall be applied by the employer for the sole benefit of the
12 employees.
13 § 3. Subsection (b) of section 4231 of the insurance law is amended by
14 adding a new paragraph 8 to read as follows:
15 (8) In the case of any individual or group participating immediate
16 annuity and of any individual or group participating deferred annuity in
17 which each consideration paid into the annuity purchases guaranteed
18 paid-up annuity benefits determined at the time the consideration is
19 paid, the dividend so apportioned shall be applicable, at the election
20 of the holder of the individual contract or group certificate, in
21 accordance with the options specified in subparagraph (A), (B) or (C) of
22 paragraph one of this subsection or if the contract or certificate so
23 provides, subparagraph (D) of paragraph one of this subsection.
24 § 4. This act shall take effect immediately.