Assembly Bill A7700

2021-2022 Legislative Session

Modifies the interest rate within the standard nonforfeiture law for annuities

download bill text pdf

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Archive: Last Bill Status - In Assembly Committee

  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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2021-A7700 (ACTIVE) - Details

See Senate Version of this Bill:
S6667
Current Committee:
Assembly Insurance
Law Section:
Insurance Law
Laws Affected:
Amd §4223, Ins L
Versions Introduced in 2023-2024 Legislative Session:
A694, S3403

2021-A7700 (ACTIVE) - Summary

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.

2021-A7700 (ACTIVE) - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7700
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 20, 2021
                                ___________
 
 Introduced by M. of A. HUNTER -- 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:

   Section 1. Item (iii) of subparagraph (F) of paragraph 2 of subsection
 (c) of section 4223 of the insurance law, as amended by chapter  170  of
 the laws of 2008, is amended to read as follows:
   (iii) where the resulting minimum guaranteed interest rate is not less
 than  ONE HALF OF one percent FOR ANY CONTRACT WITH A PREMIUM CHARGE AND
 FOR CONTRACTS WITHOUT PREMIUM CHARGES DURING ANY CONTRACT PERIOD WITH  A
 SURRENDER  CHARGE,  AND  NOT LESS THAN FIFTEEN HUNDREDTHS OF ONE PERCENT
 DURING ANY CONTRACT PERIOD WITH NO SURRENDER CHARGE.  The minimum annual
 effective rate of interest at issue shall be specified in the  contract.
 The  basis and calculation for setting the minimum annual effective rate
 of interest at issue of a contract shall be filed with  the  superinten-
 dent. If the contract provides that the minimum annual effective rate of
 interest  may  be  redetermined, the redetermination date, basis, calcu-
 lation and period shall be stated in the contract. The basis is the date
 or average over a specified period that produces the values of the five-
 year constant maturity treasury rate to be used at each  redetermination
 date or at issue.
   § 2. This act shall take effect immediately.
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11369-01-1

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