Assembly Bill A694

2023-2024 Legislative Session

Modifies the interest rate within the standard nonforfeiture law for annuities

download bill text pdf

Sponsored By

Current Bill Status - In Assembly Committee

  • 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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2023-A694 (ACTIVE) - Details

See Senate Version of this Bill:
S3403
Current Committee:
Assembly Insurance
Law Section:
Insurance Law
Laws Affected:
Amd §4223, Ins L
Versions Introduced in 2021-2022 Legislative Session:
A7700, S6667

2023-A694 (ACTIVE) - Summary

Reduces the minimum nonforfeiture interest rate for annuities from one percent to one half of one percent for annuities during the surrender charge period, and from one percent to fifteen hundredths of one percent during any contract period with no surrender charge.

2023-A694 (ACTIVE) - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    694
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 11, 2023
                                ___________
 
 Introduced  by M. of A. HUNTER, LUPARDO -- read once and referred to the
   Committee on Insurance
 
 AN ACT to amend the insurance law, in relation to modifying the interest
   rate within the standard nonforfeiture law for annuities
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Item (iii) of subparagraph (F) of paragraph 2 of subsection
 (c)  of  section 4223 of the insurance law, as amended by chapter 170 of
 the laws of 2008, is amended to read as follows:
   (iii) where the resulting minimum guaranteed interest rate is not less
 than ONE HALF OF one percent FOR ANY CONTRACT WITH A PREMIUM CHARGE  AND
 FOR  CONTRACTS WITHOUT PREMIUM CHARGES DURING ANY CONTRACT PERIOD WITH A
 SURRENDER CHARGE, AND NOT LESS THAN FIFTEEN HUNDREDTHS  OF  ONE  PERCENT
 DURING ANY CONTRACT PERIOD WITH NO SURRENDER CHARGE.  The minimum annual
 effective  rate of interest at issue shall be specified in the contract.
 The basis and calculation for setting the minimum annual effective  rate
 of  interest  at issue of a contract shall be filed with the superinten-
 dent. If the contract provides that the minimum annual effective rate of
 interest may be redetermined, the redetermination  date,  basis,  calcu-
 lation and period shall be stated in the contract. The basis is the date
 or average over a specified period that produces the values of the five-
 year  constant maturity treasury rate to be used at each redetermination
 date or at issue.
   § 2. This act shall take effect immediately.
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03375-01-3

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