S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7152--A
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 10, 2017
                                ___________
 
 Introduced  by  M. of A. OTIS, McDONALD -- read once and referred to the
   Committee on Insurance -- committee discharged, bill amended,  ordered
   reprinted as amended and recommitted to said committee
 
 AN ACT to amend the insurance law, in relation to annuity dividend rein-
   vestment

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 6 of subsection (b) of section 4231 of the insur-
 ance law is amended to read as follows:
   (6) In the case of any individual term policy and of every  individual
 participating  annuity,  OTHER  THAN  AN  ANNUITY DESCRIBED IN PARAGRAPH
 EIGHT OF THIS SUBSECTION, or pure endowment contract, the  dividends  so
 apportioned  shall  be applicable, at the election of the holder of such
 policy or contract, in accordance with the options specified in subpara-
 graph (A) or (B) of paragraph one [hereof] OF THIS SUBSECTION or if  the
 policy or contract so provides, subparagraph (D) of paragraph one [here-
 of]  OF THIS SUBSECTION.  In the case of any such term policy or annuity
 or pure endowment contract, the requirement as  to  notice  of  election
 hereinbefore  specified  shall be applicable, but the option which shall
 be applied in case the holder  of  such  contract  fails  to  make  such
 election  shall  be  determined  by the company with the approval of the
 superintendent.
   § 2. Paragraph 7 of subsection (b) of section 4231  of  the  insurance
 law is amended to read as follows:
   (7) In the case of any participating group policy of life insurance or
 any  participating group or blanket policy of accident and health insur-
 ance, or of any participating group  annuity  contract,  OTHER  THAN  AN
 ANNUITY DESCRIBED IN PARAGRAPH EIGHT OF THIS SUBSECTION, the dividend so
 apportioned  shall,  at  the option of the policyholder or holder of the
 master contract, be applied pursuant to subparagraph (A) or (B) of para-
 graph one [hereof] OF THIS SUBSECTION. Any dividend  so  apportioned  on
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD06792-07-7

 A. 7152--A                          2
 
 any  such  participating  group  insurance policy, or any rate reduction
 made or continued on any non-participating group  insurance  policy  for
 the  first  or  any  subsequent  year of insurance under any such policy
 issued  to  an employer, may be applied to reduce the employer's part of
 the cost of such policy, except that the excess, if any, of the  employ-
 ees'  aggregate  contribution  under the policy over the net cost of the
 insurance shall be applied by the employer for the sole benefit  of  the
 employees.
   § 3. Subsection (b) of section 4231 of the insurance law is amended by
 adding a new paragraph 8 to read as follows:
   (8)  IN  THE  CASE  OF ANY INDIVIDUAL OR GROUP PARTICIPATING IMMEDIATE
 ANNUITY AND OF ANY INDIVIDUAL OR GROUP PARTICIPATING DEFERRED ANNUITY IN
 WHICH EACH CONSIDERATION PAID  INTO  THE  ANNUITY  PURCHASES  GUARANTEED
 PAID-UP  ANNUITY  BENEFITS  DETERMINED  AT THE TIME THE CONSIDERATION IS
 PAID, THE DIVIDEND SO APPORTIONED SHALL BE APPLICABLE, AT  THE  ELECTION
 OF  THE  HOLDER  OF  THE  INDIVIDUAL  CONTRACT  OR GROUP CERTIFICATE, IN
 ACCORDANCE WITH THE OPTIONS SPECIFIED IN SUBPARAGRAPH (A), (B) OR (C) OF
 PARAGRAPH ONE OF THIS SUBSECTION OR IF THE CONTRACT  OR  CERTIFICATE  SO
 PROVIDES, SUBPARAGRAPH (D) OF PARAGRAPH ONE OF THIS SUBSECTION.
   § 4. This act shall take effect immediately.