NY State Senate Bill 2017-S2525A

Senate Bill S2525A

Signed By Governor

2017-2018 Legislative Session

Relates to annuity dividend reinvestment of certain individual or group participating annuity contracts

download bill text pdf

Archive: Last Bill Status Via A7152 - Signed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Sep 12, 2017	signed chap.297
Aug 31, 2017	delivered to governor
Jun 08, 2017	returned to assembly passed senate 3rd reading cal.674 substituted for s2525b
Jun 08, 2017	substituted by a7152a
May 03, 2017	advanced to third reading amended 2525b
May 02, 2017	2nd report cal.
May 01, 2017	1st report cal.674
Apr 28, 2017	print number 2525a
Apr 28, 2017	amend and recommit to insurance
Jan 13, 2017	referred to insurance

Votes

- Jun 8, 2017 - Floor Vote
  A7152
  
  61
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  2
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 8, 2017
      
      aye (61)
      
      Addabbo Jr.
      
      Akshar
      
      Alcantara
      
      Amedore
      
      Avella
      
      Bailey
      
      Benjamin
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      Croci
      
      DeFrancisco
      
      Dilan
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Hamilton
      
      Hannon
      
      Helming
      
      Hoylman-Sigal
      
      Jacobs
      
      Kaminsky
      
      Kennedy
      
      Klein
      
      Krueger
      
      Lanza
      
      Larkin
      
      Latimer
      
      Little
      
      Marcellino
      
      Marchione
      
      Montgomery
      
      Murphy
      
      O'Mara
      
      Ortt
      
      Parker
      
      Peralta
      
      Persaud
      
      Phillips
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Sanders Jr.
      
      Savino
      
      Serino
      
      Serrano
      
      Seward
      
      Squadron
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Valesky
      
      Young
      
      excused (2)
      
      Diaz
      
      LaValle
  May 1, 2017 - Insurance Committee Vote
  S2525A
  
  18
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Insurance Committee Vote: May 1, 2017
      
      aye (18)
      
      Akshar
      
      Breslin
      
      Brooks
      
      Golden
      
      Hamilton
      
      Jacobs
      
      Kennedy
      
      LaValle
      
      Lanza
      
      Larkin
      
      Latimer
      
      Murphy
      
      O'Mara
      
      Phillips
      
      Rivera
      
      Savino
      
      Serino
      
      Seward
      
      excused (1)
      
      Parker

Bill Amendments

Original

B (Active)

2017-S2525 - Details

Law Section:: Insurance Law
Laws Affected:: Amd §4231, Ins L

2017-S2525 - Summary

Relates to annuity dividend reinvestment of certain individual or group participating annuity contracts.

2017-S2525 - Sponsor Memo

2017-S2525 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2525
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 13, 2017
                                ___________
 
 Introduced  by  Sen.  SEWARD -- 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 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]  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 or if the policy or contract so
 provides,  subparagraph (D) of paragraph one hereof.  IN THE CASE OF ANY
 INDIVIDUAL OR GROUP PARTICIPATING ANNUITY  CONTRACT,  THE  DIVIDENDS  SO
 APPORTIONED  SHALL  BE APPLICABLE, AT THE ELECTION OF THE HOLDER OF SUCH
 INDIVIDUAL PARTICIPATING ANNUITY CONTRACT OR THE HOLDER OF  ANY  CERTIF-
 ICATE  UNDER  SUCH  GROUP  PARTICIPATING ANNUITY CONTRACT, IN ACCORDANCE
 WITH THE OPTIONS PROVIDED IN THE CONTRACT OR CERTIFICATE UNDER  A  GROUP
 CONTRACT,  WHICH  SHALL  INCLUDE ONE OR MORE OF THE OPTIONS SPECIFIED IN
 SUBPARAGRAPH (A), (B), (C), OR (D) OF PARAGRAPH ONE HEREOF. 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. This act shall take effect immediately.
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06792-03-7

2017-S2525A - Details

Law Section:: Insurance Law
Laws Affected:: Amd §4231, Ins L

2017-S2525A - Summary

Relates to annuity dividend reinvestment of certain individual or group participating annuity contracts.

2017-S2525A - Sponsor Memo

2017-S2525A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2525--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 13, 2017
                                ___________
 
 Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
   printed to be committed 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-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD06792-04-7

 S. 2525--A                          2
 
 graph  one  [hereof]  OF THIS SUBSECTION. Any dividend so apportioned on
 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.

2017-S2525B (ACTIVE) - Details

Law Section:: Insurance Law
Laws Affected:: Amd §4231, Ins L

2017-S2525B (ACTIVE) - Summary

Relates to annuity dividend reinvestment of certain individual or group participating annuity contracts.

2017-S2525B (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S2525B

 TITLE OF BILL :  An act to amend the insurance law, in relation to
annuity dividend reinvestment

 PURPOSE :

To provide for the election of automatic reinvestment of dividend
distributions.

 SUMMARY OF PROVISIONS :

Section 1 of the bill would amend paragraph (6) of subsection (b) of
section 4231 of the Insurance Law to reference for purposes of an
individual participating annuity contract, the clarification
applicable to participating income annuity contracts set forth in new
paragraph (8) of subsection (b) of section 4231 of the Insurance Law
that the annuitant may elect to reinvest the annuity dividend.

Section 2 of the bill would amend paragraph (7) of subsection (b) of
section 4231 of the Insurance Law to reference for purposes of a group
participating annuity contract, the clarification applicable to
participating income annuity contracts set forth in new paragraph (8)
of subsection (b) of section 4231 of the Insurance Law that the
annuitant may elect to reinvest the annuity dividend.

Section 3 of the bill would amend section 4231 of the Insurance Law to
create a new paragraph (8) of subsection (b) to clarify that for
purposes of individual or group participating income annuity
contracts, the annuitant may elect to reinvest the annuity dividend.

Section 4 is the effective date.

 JUSTIFICATION :

This proposal seeks to amend § 4231 of the insurance law to clarify
that paid-up additions are an option for the use of policyholder
dividends by annuitants. This revision is beneficial to the annuity
customer since it will allow them to have the option to automatically
reinvest their policyholder dividend distributions to paid-up
additions in their annuity contract, which can then be converted into
future income.

 LEGISLATIVE HISTORY :

New bill.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
Immediately.

2017-S2525B (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2525--B
     Cal. No. 674
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 13, 2017
                                ___________
 
 Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
   printed to be committed to the Committee  on  Insurance  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to  said  committee -- reported favorably from said committee, ordered
   to first and second report, amended on second  report,  ordered  to  a
   third  reading, and to be reprinted as amended, retaining its place in
   the order of third reading
 
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD06792-06-7

 S. 2525--B                          2
 
 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
 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.

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Senate Bill S2525A

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Sponsored By

James L. Seward

Archive: Last Bill Status Via A7152 - Signed by Governor

Bill Amendments

2017-S2525 - Details

2017-S2525 - Summary

2017-S2525 - Sponsor Memo

2017-S2525 - Bill Text download pdf

2017-S2525A - Details

2017-S2525A - Summary

2017-S2525A - Sponsor Memo

2017-S2525A - Bill Text download pdf

2017-S2525B (ACTIVE) - Details

2017-S2525B (ACTIVE) - Summary

2017-S2525B (ACTIVE) - Sponsor Memo

2017-S2525B (ACTIVE) - Bill Text download pdf

Comments