§ 1110. Charitable annuity societies exempt; special permits. (a) The
superintendent may, in his or her discretion, issue a special permit to
make annuity agreements with donors to any duly organized domestic or
foreign non-stock corporation or association conducted without profit
and engaged in active operation for at least ten years prior thereto
solely in bona fide charitable, religious, missionary, educational or
philanthropic activities. The permit shall authorize such corporation or
association to receive gifts of cash and other property conditioned
upon, or in return for, its agreement to pay an annuity to the donor, or
his or her nominee, and to make and carry out such annuity agreement.
Every such corporation or association shall, before making such
agreement, file with the superintendent copies of its forms of
agreements with annuitants and a schedule of its maximum annuity rates,
which shall be computed so as to return to it upon the annuitant's death
a residue at least equal to one-half the original gift or other
consideration for such annuity. The maximum annuity rates may be unisex
in nature and shall be computed on the basis of currently applicable
mortality tables for calculating the reserves for individual annuities
pursuant to section four thousand two hundred seventeen of this chapter.
The yield of the ten year treasury bond plus two percent as of April
thirtieth, rounded to the nearest 0.25%, shall be used to calculate the
maximum annuity rates to become effective as of July first of the same
year and the ten year treasury bond yield plus two percent as of October
thirty-first, rounded to the nearest 0.25%, shall be used to calculate
the maximum annuity rates to become effective as of January first of the
following year. No other factors shall be used to calculate the maximum
annuity rates.

(b) Every such domestic corporation or association shall maintain
admitted assets at least equal to the greater of (i) the sum of its
reserves on its outstanding agreements, calculated in accordance with
section four thousand two hundred seventeen of this chapter, and a
surplus of ten per centum of such reserves, or (ii) the amount of one
hundred thousand dollars. In determining such reserves a deduction shall
be made for all or any portion of an annuity risk which is reinsured by
a life insurance company authorized to do business in this state. The
required admitted assets shall be invested in accordance with the
prudent investor standard as defined in section 11-2.3 of the estates,
powers and trusts law and shall not be subject to the investment
limitations set forth in this chapter. Such assets shall be segregated
as separate and distinct funds, independent of all other funds of such
corporation or association, and shall not be applied to pay its debts
and obligations or for any purpose except the aforesaid annuity
benefits.

(c) No such corporation or association organized under the laws of
another state shall be permitted to make such annuity agreements in this
state unless it complies with all requirements of this section imposed
upon like domestic corporations or associations.

(d) No such corporation or association shall make or issue in this
state any annuity contract before obtaining a permit issued in
accordance with the provisions of this section except that if its
requisite reserve on its outstanding annuity agreements computed in
accordance with section four thousand two hundred seventeen of this
chapter does not exceed the amount of one million dollars, it may make
gift annuity agreements in this state and shall be exempted from
securing a permit provided it maintains the reserve required by section
four thousand two hundred seventeen of this chapter and a surplus of at
least twenty-five per centum of such reserve. If the superintendent
finds, after notice and hearing, that any such corporation or
association, having such a permit, has failed to comply with the
requirements of this section, the superintendent may revoke or suspend
such permit or order it to cease making new annuity contracts until it
complies. The superintendent may, in the superintendent's discretion,
either dispense with the requirement of annual statements by such
corporations or associations or accept a sworn statement by two or more
of its principal officers, in such form as will satisfy the
superintendent that the requirements of this section are being complied
with.

(e) Except as provided in this section every such corporation or
association shall be exempt from the provisions of this chapter, other
than articles one, two, three, twenty-five and seventy-four of this
chapter.

(f) The superintendent may, in the superintendent's discretion,
examine any such corporation or association that is exempt from
obtaining a permit pursuant to subsection (d) of this section.