Assembly Bill A9128A

2021-2022 Legislative Session

Authorizes dividend paying deferred income annuities

download bill text pdf

Sponsored By

Archive: Last Bill Status Via S7744 - Passed Assembly


  • 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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Bill Amendments

2021-A9128 - Details

See Senate Version of this Bill:
S7744
Law Section:
Insurance Law
Laws Affected:
Amd §§4223 & 3209, Ins L

2021-A9128 - Summary

Provides that purchasers of dividend paying annuities shall be considered a separate class of annuitants from purchasers of annuities that do not pay dividends.

2021-A9128 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9128
 
                           I N  A S S E M B L Y
 
                             January 31, 2022
                                ___________
 
 Introduced  by M. of A. STERN -- read once and referred to the Committee
   on Insurance
 
 AN ACT to amend the insurance law, in relation to  authorizing  dividend
   paying deferred income annuities
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraph (E)  of  paragraph  1  of  subsection  (a)  of
 section 4223 of the insurance law, as amended by chapter 864 of the laws
 of 1985, is amended to read as follows:
   (E)  A  statement  that  the  annuity  benefits  at  the time of their
 commencement will not be less than those that would be provided  by  the
 application  of  an  amount, hereinafter defined, to purchase any single
 consideration immediate annuity contract offered by the company  at  the
 time  to  the  same class of annuitants. For contracts that provide cash
 surrender benefits, such amount shall be the greater of the cash surren-
 der benefit or ninety-five percent of what the  cash  surrender  benefit
 would  be  if there were no withdrawal charge. For contracts that do not
 provide cash surrender benefits, such amount shall be the present  value
 of the paid-up annuity benefit provided under the contract in accordance
 with subsection (d) of this section.  FOR PURPOSES OF THIS SUBPARAGRAPH,
 PURCHASERS  OF  DIVIDEND PAYING ANNUITIES SHALL BE CONSIDERED A SEPARATE
 CLASS OF ANNUITANTS FROM PURCHASERS OF ANNUITIES THAT DO NOT  PAY  DIVI-
 DENDS,  THEREBY  ALLOWING  THE  ANNUITY BENEFITS UNDER A DIVIDEND PAYING
 DEFERRED INCOME ANNUITY TO BE COMPARED TO THE ANNUITY BENEFITS  UNDER  A
 DIVIDEND  PAYING  SINGLE  CONSIDERATION IMMEDIATE ANNUITY OFFERED BY THE
 COMPANY TO SATISFY THE REQUIREMENT OF THIS SUBPARAGRAPH. This  statement
 will not affect the amount of any benefits required to be provided under
 any other provision of this section.
   § 2. This act shall take effect immediately.
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14228-01-2



              

co-Sponsors

2021-A9128A (ACTIVE) - Details

See Senate Version of this Bill:
S7744
Law Section:
Insurance Law
Laws Affected:
Amd §§4223 & 3209, Ins L

2021-A9128A (ACTIVE) - Summary

Provides that purchasers of dividend paying annuities shall be considered a separate class of annuitants from purchasers of annuities that do not pay dividends.

2021-A9128A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  9128--A
 
                           I N  A S S E M B L Y
 
                             January 31, 2022
                                ___________
 
 Introduced  by M. of A. STERN -- 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 authorizing dividend
   paying deferred income annuities
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subparagraph  (E)  of  paragraph  1  of subsection (a) of
 section 4223 of the insurance law, as amended by chapter 864 of the laws
 of 1985, is amended to read as follows:
   (E) [A] (I) EXCEPT AS PROVIDED IN CLAUSE (II) OF THIS SUBPARAGRAPH,  A
 statement  that  the  annuity benefits at the time of their commencement
 will not be less than those that would be provided by the application of
 an amount, hereinafter defined, to  purchase  any  single  consideration
 immediate  annuity  contract  offered  by the company at the time to the
 same class of annuitants. For  contracts  that  provide  cash  surrender
 benefits, such amount shall be the greater of the cash surrender benefit
 or  ninety-five  percent  of what the cash surrender benefit would be if
 there were no withdrawal charge. For contracts that do not provide  cash
 surrender  benefits, such amount shall be the present value of the paid-
 up annuity benefit  provided  under  the  contract  in  accordance  with
 subsection (d) of this section.
   [This statement will not affect the amount of any benefits required to
 be provided under any other provision of this section.]
   (II)  FOR  PAID-UP  DEFERRED ANNUITY CONTRACTS IN WHICH EACH CONSIDER-
 ATION PAID INTO THE CONTRACT PURCHASES GUARANTEED PAID-UP ANNUITY  BENE-
 FITS  DETERMINED AT THE TIME THE CONSIDERATION IS PAID, A STATEMENT THAT
 THE ANNUITY BENEFITS AT THE TIME EACH CONSIDERATION IS PAID WILL NOT  BE
 LESS THAN THOSE THAT WOULD BE PROVIDED BY THE APPLICATION OF THE CONSID-
 ERATION  TO CURRENT PURCHASE RATES FOR NEW SALES OF SUCH CONTRACT OR ANY
 COMPARABLE PAID-UP DEFERRED ANNUITY CONTRACT OFFERED BY THE  COMPANY  AT
 THAT  TIME  TO  THE SAME CLASS OF ANNUITANTS. FOR PURPOSES OF THIS ITEM,
 DIVIDENDS APPLIED TO PURCHASE PAID-UP ADDITIONS TO THE CONTRACT SHALL BE
 TREATED AS CONSIDERATIONS PAID INTO THE CONTRACT. THIS  STATEMENT  SHALL
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

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