S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  9128--A
 
                           I N  A S S E M B L Y
 
                             January 31, 2022
                                ___________
 
 Introduced  by M. of A. STERN -- 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 authorizing dividend
   paying deferred income annuities
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subparagraph  (E)  of  paragraph  1  of subsection (a) of
 section 4223 of the insurance law, as amended by chapter 864 of the laws
 of 1985, is amended to read as follows:
   (E) [A] (I) EXCEPT AS PROVIDED IN CLAUSE (II) OF THIS SUBPARAGRAPH,  A
 statement  that  the  annuity benefits at the time of their commencement
 will not be less than those that would be provided by the application of
 an amount, hereinafter defined, to  purchase  any  single  consideration
 immediate  annuity  contract  offered  by the company at the time to the
 same class of annuitants. For  contracts  that  provide  cash  surrender
 benefits, such amount shall be the greater of the cash surrender benefit
 or  ninety-five  percent  of what the cash surrender benefit would be if
 there were no withdrawal charge. For contracts that do not provide  cash
 surrender  benefits, such amount shall be the present value of the paid-
 up annuity benefit  provided  under  the  contract  in  accordance  with
 subsection (d) of this section.
   [This statement will not affect the amount of any benefits required to
 be provided under any other provision of this section.]
   (II)  FOR  PAID-UP  DEFERRED ANNUITY CONTRACTS IN WHICH EACH CONSIDER-
 ATION PAID INTO THE CONTRACT PURCHASES GUARANTEED PAID-UP ANNUITY  BENE-
 FITS  DETERMINED AT THE TIME THE CONSIDERATION IS PAID, A STATEMENT THAT
 THE ANNUITY BENEFITS AT THE TIME EACH CONSIDERATION IS PAID WILL NOT  BE
 LESS THAN THOSE THAT WOULD BE PROVIDED BY THE APPLICATION OF THE CONSID-
 ERATION  TO CURRENT PURCHASE RATES FOR NEW SALES OF SUCH CONTRACT OR ANY
 COMPARABLE PAID-UP DEFERRED ANNUITY CONTRACT OFFERED BY THE  COMPANY  AT
 THAT  TIME  TO  THE SAME CLASS OF ANNUITANTS. FOR PURPOSES OF THIS ITEM,
 DIVIDENDS APPLIED TO PURCHASE PAID-UP ADDITIONS TO THE CONTRACT SHALL BE
 TREATED AS CONSIDERATIONS PAID INTO THE CONTRACT. THIS  STATEMENT  SHALL
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14228-03-2
 A. 9128--A                          2
 
 NOT  AFFECT THE AMOUNT OF ANY BENEFITS REQUIRED TO BE PROVIDED UNDER ANY
 OTHER PROVISION OF THIS SECTION.
   § 2. Subsection (b) of section 3209 of the insurance law is amended by
 adding a new paragraph 3 to read as follows:
   (3) NO PARTICIPATING DIVIDEND-PAYING PAID-UP DEFERRED ANNUITY CONTRACT
 SHALL  BE  DELIVERED  OR  ISSUED  FOR  DELIVERY  IN  THIS STATE UNLESS A
 PROSPECTIVE PURCHASER IS PROVIDED WITH A DISCLOSURE STATEMENT, NO  LATER
 THAN AT THE TIME OF APPLICATION, CONTAINING THE FOLLOWING:
   (A) A STATEMENT INDICATING THAT DIVIDENDS ARE NOT GUARANTEED UNDER THE
 PARTICIPATING  DIVIDEND-PAYING PAID-UP DEFERRED ANNUITY CONTRACT AND THE
 INCOME IS THEREFORE NOT GUARANTEED TO INCREASE FROM  THE  DOLLAR  AMOUNT
 SET AT THE TIME OF ISSUE; AND
   (B) A STATEMENT INDICATING THAT THE INITIAL INCOME UNDER A PARTICIPAT-
 ING  DIVIDEND-PAYING PAID-UP DEFERRED ANNUITY CONTRACT MAY BE LOWER THAN
 THE INITIAL INCOME UNDER A FULLY  GUARANTEED  PAID-UP  DEFERRED  ANNUITY
 CONTRACT.
   § 3. This act shall take effect immediately.