S T A T E O F N E W Y O R K
________________________________________________________________________
8164
2021-2022 Regular Sessions
I N A S S E M B L Y
July 7, 2021
___________
Introduced by M. of A. CAHILL -- read once and referred to the Committee
on Insurance
AN ACT to amend the insurance law, in relation to certain charitable
annuities
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subsection (a) of section 1110 of the insurance law, as
amended by chapter 199 of the laws of 2004, is amended to read as
follows:
(a) The superintendent may, in his OR HER discretion, issue a special
permit to make annuity agreements with donors to any duly organized
domestic or foreign non-stock corporation or association conducted with-
out profit and engaged in active operation for at least ten years prior
thereto solely in bona fide charitable, religious, missionary, educa-
tional or philanthropic activities. The permit shall authorize such
corporation or association to receive gifts of cash and other property
conditioned upon, or in return for, its agreement to pay an annuity to
the donor, or his OR HER nominee, and to make and carry out such annuity
agreement. Every such corporation or association shall, before making
such agreement, file with the superintendent copies of its forms of
agreements with annuitants and a schedule of its maximum annuity rates,
which shall be computed [on the basis of the annuity standard adopted by
it for calculating its reserves] so as to return to it upon the
annuitant's death a residue at least equal to one-half the original gift
or other consideration for such annuity. THE MAXIMUM ANNUITY RATES MAY
BE UNISEX IN NATURE AND SHALL BE COMPUTED ON THE BASIS OF CURRENTLY
APPLICABLE MORTALITY TABLES FOR CALCULATING THE RESERVES FOR INDIVIDUAL
ANNUITIES PURSUANT TO SECTION FOUR THOUSAND TWO HUNDRED SEVENTEEN OF
THIS CHAPTER. THE YIELD OF THE TEN YEAR TREASURY BOND YIELD PLUS TWO
PERCENT AS OF APRIL THIRTIETH, ROUNDED TO THE NEAREST 0.25%, SHALL BE
USED TO CALCULATE THE MAXIMUM ANNUITY RATES TO BECOME EFFECTIVE AS OF
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11811-01-1
A. 8164 2
JULY FIRST OF THE SAME YEAR AND THE TEN YEAR TREASURY BOND YIELD PLUS
TWO PERCENT AS OF OCTOBER THIRTY-FIRST, ROUNDED TO THE NEAREST 0.25%,
SHALL BE USED TO CALCULATE THE MAXIMUM ANNUITY RATES TO BECOME EFFECTIVE
AS OF JANUARY FIRST OF THE FOLLOWING YEAR. NO OTHER FACTORS SHALL BE
USED TO CALCULATE THE MAXIMUM ANNUITY RATES.
§ 2. This act shall take effect on the ninetieth day after it shall
have become a law. Effective immediately, the addition, amendment
and/or repeal of any rule or regulation necessary for the implementation
of this act on its effective date are authorized to be made and
completed on or before such effective date.