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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          2683

                               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

        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
    21  applicable  mortality tables for calculating the reserves for individual
    22  annuities pursuant to section four thousand  two  hundred  seventeen  of
    23  this  chapter.  The  yield  of the ten year treasury bond yield plus two
    24  percent as of April thirtieth, rounded to the nearest  0.25%,  shall  be
    25  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.
                                                                   LBD07365-01-3
        S. 2683                             2

     1  July first of the same year and the ten year treasury  bond  yield  plus
     2  two  percent  as  of October thirty-first, rounded to the nearest 0.25%,
     3  shall be used to calculate the maximum annuity rates to become effective
     4  as  of  January  first  of the following year. No other factors shall be
     5  used to calculate the maximum annuity rates.
     6    § 2. This act shall take effect on the ninetieth day  after  it  shall
     7  have  become  a  law.    Effective  immediately, the addition, amendment
     8  and/or repeal of any rule or regulation necessary for the implementation
     9  of this act on  its  effective  date  are  authorized  to  be  made  and
    10  completed on or before such effective date.