NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2199
SPONSOR: Stern TITLE OF BILL:
An act to amend the insurance law, in relation to annuity benefits
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to make amendments to Chapter 832 of the
Laws of 2022 relating to annuity benefits.
SUMMARY OF PROVISIONS:
Sections 1 provides technical amendments to Chapter 832 of the Laws of
2022 to change the term "clause" to "item" and correctly reference
sections of the Insurance Law.
Section 2 provides the effective date.
JUSTIFICATION:
Chapter 832 of the Laws of 2022 provided that New York consumers have
access to an array of annuity products, including participating deferred
income annuities (also known as "par DIAs"). This chapter amendment
makes technical amendments to provisions of the Insurance Law.
PRIOR LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None noted.
EFFECTIVE DATE:
This act shall take effect on the same date and in the same manner as a
chapter of the laws of 2022 amending the insurance law relating to
authorizing dividend paying deferred income annuities, as proposed in
legislative bills numbers S.7744-A and A.9128-A, takes effect.
STATE OF NEW YORK
________________________________________________________________________
2199
2023-2024 Regular Sessions
IN ASSEMBLY
January 23, 2023
___________
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 annuity benefits
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subparagraph (E) of paragraph 1 of subsection (a) of
2 section 4223 of the insurance law, as amended by a chapter of the laws
3 of 2022 amending the insurance law relating to authorizing dividend
4 paying deferred income annuities, as proposed in legislative bills
5 numbers S. 7744-A and A. 9128-A, is amended to read as follows:
6 (E) (i) Except as provided in [clause] item (ii) of this subparagraph,
7 a statement that the annuity benefits at the time of their commencement
8 will not be less than those that would be provided by the application of
9 an amount, hereinafter defined, to purchase any single consideration
10 immediate annuity contract offered by the company at the time to the
11 same class of annuitants. For contracts that provide cash surrender
12 benefits, such amount shall be the greater of the cash surrender benefit
13 or ninety-five percent of what the cash surrender benefit would be if
14 there were no withdrawal charge. For contracts that do not provide cash
15 surrender benefits, such amount shall be the present value of the paid-
16 up annuity benefit provided under the contract in accordance with
17 subsection (d) of this section.
18 (ii) For paid-up deferred annuity contracts in which each consider-
19 ation paid into the contract purchases guaranteed paid-up annuity bene-
20 fits determined at the time the consideration is paid, a statement that
21 the annuity benefits at the time each consideration is paid will not be
22 less than those that would be provided by the application of the consid-
23 eration to current purchase rates for new sales of such contract or any
24 comparable paid-up deferred annuity contract offered by the company at
25 that time to the same class of annuitants. For purposes of this item,
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04041-01-3
A. 2199 2
1 dividends applied to purchase paid-up additions to the contract shall be
2 treated as considerations paid into the contract. [This statement]
3 (iii) The statements set forth in items (i) and (ii) of this subpara-
4 graph shall not affect the amount of any benefits required to be
5 provided under any other provision of this section.
6 § 2. This act shall take effect on the same date and in the same
7 manner as a chapter of the laws of 2022 amending the insurance law
8 relating to authorizing dividend paying deferred income annuities, as
9 proposed in legislative bills numbers S. 7744-A and A. 9128-A, takes
10 effect.
