Bill Text: NY S02525 | 2017-2018 | General Assembly | Amended

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Bill Title: Relates to annuity dividend reinvestment of certain individual or group participating annuity contracts.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2017-06-08 - SUBSTITUTED BY A7152A [S02525 Detail]

Download: New_York-2017-S02525-Amended.html

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                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.