Bill Text: NY S05213 | 2011-2012 | General Assembly | Introduced

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Bill Title: Relates to investments by charitable gift annuity corporations or associations.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2012-01-04 - REFERRED TO INSURANCE [S05213 Detail]

Download: New_York-2011-S05213-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         5213
                              2011-2012 Regular Sessions
                                   I N  S E N A T E
                                      May 3, 2011
                                      ___________
       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    S 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