Bill Text: NY S02683 | 2023-2024 | General Assembly | Amended

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Bill Title: Provides that certain charitable annuities may be unisex in nature and shall be computed on the basis of currently applicable mortality tables for calculating the reserves for individual annuities; makes related provisions.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2023-10-25 - SIGNED CHAP.584 [S02683 Detail]

Download: New_York-2023-S02683-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         2683--A
            Cal. No. 347

                               2023-2024 Regular Sessions

                    IN SENATE

                                    January 24, 2023
                                       ___________

        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, passed by  Senate  and  delivered  to  the
          Assembly,  recalled,  vote  reconsidered,  restored  to 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 certain charitable
          annuities

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Subsection  (a)  of section 1110 of the insurance law, as
     2  amended by chapter 199 of the laws  of  2004,  is  amended  to  read  as
     3  follows:
     4    (a)  The superintendent may, in his or her discretion, issue a special
     5  permit to make annuity agreements with  donors  to  any  duly  organized
     6  domestic or foreign non-stock corporation or association conducted with-
     7  out  profit and engaged in active operation for at least ten years prior
     8  thereto solely in bona fide charitable,  religious,  missionary,  educa-
     9  tional  or  philanthropic  activities.  The  permit shall authorize such
    10  corporation or association to receive gifts of cash and  other  property
    11  conditioned  upon,  or in return for, its agreement to pay an annuity to
    12  the donor, or his or her nominee, and to make and carry out such annuity
    13  agreement. Every such corporation or association  shall,  before  making
    14  such  agreement,  file  with  the  superintendent copies of its forms of
    15  agreements with annuitants and a schedule of its maximum annuity  rates,
    16  which shall be computed [on the basis of the annuity standard adopted by
    17  it  for  calculating  its  reserves]  so  as  to  return  to it upon the
    18  annuitant's death a residue at least equal to one-half the original gift
    19  or other consideration for such annuity. The maximum annuity  rates  may
    20  be  unisex  in  nature  and  shall be computed on the basis of currently

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07365-04-3
        S. 2683--A                          2

     1  applicable mortality tables for calculating the reserves for  individual
     2  annuities  pursuant  to  section  four thousand two hundred seventeen of
     3  this chapter. The yield of the ten year treasury bond plus  two  percent
     4  as  of  April  thirtieth, rounded to the nearest 0.25%, shall be used to
     5  calculate the maximum annuity rates to become effective as of July first
     6  of the same year and the ten year treasury bond yield plus  two  percent
     7  as  of October thirty-first, rounded to the nearest 0.25%, shall be used
     8  to calculate the maximum annuity rates to become effective as of January
     9  first of the following year. No other factors shall be used to calculate
    10  the maximum annuity rates.
    11    § 2. This act shall take effect on the ninetieth day  after  it  shall
    12  have  become  a  law.    Effective  immediately, the addition, amendment
    13  and/or repeal of any rule or regulation necessary for the implementation
    14  of this act on  its  effective  date  are  authorized  to  be  made  and
    15  completed on or before such effective date.