Bill Text: NY A10535 | 2011-2012 | General Assembly | Introduced

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Bill Title: Relates to admitted assets for annuity risk where a single premium annuity contract has been purchased.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2012-06-04 - referred to insurance [A10535 Detail]

Download: New_York-2011-A10535-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         10535
                                 I N  A S S E M B L Y
                                     June 4, 2012
                                      ___________
       Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Morelle) --
         read once and referred to the Committee on Insurance
       AN ACT to amend the insurance law, in relation to  admitted  assets  for
         annuity  risk  where  a  single  premium  annuity  contract  has  been
         purchased
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  Subsection  (b)  of section 1110 of the insurance law, as
    2  amended by chapter 419 of the laws  of  2001,  is  amended  to  read  as
    3  follows:
    4    (b)  Every  such  domestic  corporation  or association shall maintain
    5  admitted assets at least equal to the greater of  (i)  the  sum  of  its
    6  reserves  on  its  outstanding agreements, calculated in accordance with
    7  section four thousand two hundred  seventeen  of  this  chapter,  and  a
    8  surplus  of  ten  per centum of such reserves, or (ii) the amount of one
    9  hundred thousand dollars. In determining such reserves a deduction shall
   10  be made for all or any portion of an annuity risk which is reinsured  by
   11  a  life insurance company authorized to do business in this state OR FOR
   12  ALL OR ANY PORTION OF AN ANNUITY RISK WHERE SUCH CORPORATION OR  ASSOCI-
   13  ATION HAS PURCHASED A SINGLE PREMIUM ANNUITY CONTRACT FROM A LIFE INSUR-
   14  ANCE  COMPANY AUTHORIZED TO DO BUSINESS IN THIS STATE TO FUND SUCH RISK.
   15  The required admitted assets shall be invested in  accordance  with  the
   16  prudent  investor  standard as defined in section 11-2.3 of the estates,
   17  powers and trusts law and shall not be subject to the investment limita-
   18  tions set forth in this chapter. Such  assets  shall  be  segregated  as
   19  separate  and  distinct  funds,  independent  of all other funds of such
   20  corporation or association, and shall not be applied to  pay  its  debts
   21  and  obligations  or  for any purpose except the aforesaid annuity bene-
   22  fits.
   23    S 2. This act shall take effect immediately.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD15567-02-2