senate Bill S7744

2021-2022 Legislative Session

Authorizes dividend paying deferred income annuities

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Sponsored By

Current Bill Status - Passed Senate & Assembly


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

view actions (12)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
May 16, 2022 returned to senate
passed assembly
ordered to third reading rules cal.216
substituted for a9128a
May 11, 2022 referred to insurance
delivered to assembly
passed senate
May 02, 2022 amended on third reading 7744a
Mar 09, 2022 advanced to third reading
Mar 08, 2022 2nd report cal.
Mar 07, 2022 1st report cal.662
Jan 10, 2022 referred to insurance

S7744 - Details

See Assembly Version of this Bill:
A9128
Law Section:
Insurance Law
Laws Affected:
Amd §4223, Ins L

S7744 - 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.

S7744 - Sponsor Memo

S7744 - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7744
 
                             I N  S E N A T E
 
                             January 10, 2022
                                ___________
 
 Introduced  by  Sen. BRESLIN -- 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  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


S7744A (ACTIVE) - Details

See Assembly Version of this Bill:
A9128
Law Section:
Insurance Law
Laws Affected:
Amd §4223, Ins L

S7744A (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.

S7744A (ACTIVE) - Sponsor Memo

S7744A (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7744--A
     Cal. No. 662
 
                             I N  S E N A T E
 
                             January 10, 2022
                                ___________
 
 Introduced  by  Sen. BRESLIN -- read twice and ordered printed, and when
   printed to be committed to the  Committee  on  Insurance  --  reported
   favorably  from  said  committee,  ordered to first and second report,
   ordered to a third reading, amended and ordered  reprinted,  retaining
   its place in the order of third reading

 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,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

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