§ 4238. Group annuity contracts. (a) Any policy or contract, except a
joint, reversionary or survivorship annuity contract, whereby annuities
are payable dependent upon the continuance of the lives of more than one
person, shall be deemed a group annuity contract. The party or parties
to whom or to which such contract is issued, as herein provided, shall
be deemed the holder of such contract. The term "annuitant", as used
herein, refers to any person upon whose continued life such annuity is
dependent.

(b) No authorized insurer shall deliver or issue for delivery in this
state any group annuity contract except the following:

(1) A contract issued to an employer, which permits all of the
employees of such employer or of any specified class or classes thereof
to become annuitants.

(2) A contract issued to an employers' association which permits all
of the employees of such employers or of any specified class or classes
thereof to become annuitants. Such employers' association may provide
for the representation of annuitants on its board of directors.

(3) A contract issued to a labor union which permits all of the
members of such union or of any specified class or classes thereof to
become annuitants.

(4) A contract issued to the trustees of a trust established by an
employer, or by an employers' association, or by one or more labor
unions, or by one or more employers and one or more labor unions, which
permits all of the employees of the employers or all of the members of
the unions, or all of any class or classes thereof, to become
annuitants.

(5) A contract issued to an association of persons having a common
interest, calling or profession who constitute a homogeneous group,
which association has a constitution and by-laws and is organized and
maintained in good faith for purposes other than obtaining annuities or
to trustees of a trust established by such an association which permits
all members of the association and their employees or of any specified
class or classes thereof to become annuitants.

(6) A contract issued to a bank or trust company or trustees of one or
more trusts which permit individuals for whom contributions are made to
individual retirement accounts or for individual retirement annuities
described in section four hundred eight of the Internal Revenue Code of
1954 to become annuitants.

(7) A contract issued to the trustees of one or more trusts (other
than trusts described in paragraph four hereof) for employees of more
than one employer which permits all of the employees of each such
employer or of any specified class or classes thereof to become
annuitants, provided that if payments made to the insurer are derived
wholly from funds contributed by such employees, the insurer shall issue
a certificate complying with the requirements of this chapter applicable
to individual annuities for delivery to each employee who contributes to
the contract.

(8) A contract issued to the trustees of a foundation or endowment
fund which permits any specified class or classes of professional
persons to become annuitants.

(9) A contract issued to an association, or the trustee or trustees of
a trust established, or participated in, by one or more associations,
which permits all of the members of the associations, or all of any
specified class or classes thereof, to become annuitants subject to the
following:

each association shall have:

(A) a minimum of two hundred covered members at the contract's date of
issue;

(B) been organized and maintained in good faith for purposes
principally other than that of obtaining annuities;

(C) been in active existence for at least two years; and

(D) a constitution and by-laws which provide that:

(i) the association holds regular meetings not less than annually to
further purposes of the association;

(ii) the association collects dues or solicits contributions from
members; and

(iii) the members have voting privileges and representation on the
governing board and committees.

(10) A contract issued to any organization, or the trustee or trustees
of a trust established, or participated in, by one or more of such
organizations which permits certain persons to become annuitants subject
to the following:

(A) the organization must be:

(i) a bank, retailer, or other issuer of a credit card, charge card,
or payment card which can be used to buy goods or services, and the
contract must cover holders of that card; or

(ii) a bank, savings and loan association, credit union, mutual fund,
money market fund, stockbroker, or other similar financial institution
regulated by state or federal law, and the contract must cover the
depositors, account holders, or members of that institution; and

(B) the organization or organizations shall have a minimum of two
hundred covered persons at the contract's date of issue.

(11) A contract issued to the trustees of one or more trusts which
permits any specified class or classes of plaintiffs or claimants to
become annuitants with respect to amounts paid or payable on their
behalf by way of settlement, judgment or other award. Any such contract
or any certificate issued in connection with such contract shall not be
subject to section four thousand two hundred twenty-three of this
article.

(c) Payments made to the insurer under a group annuity contract may be
derived in whole or in part from funds contributed by the persons
covered thereunder. A group of employees covered under a contract may
include retired employees, employees of affiliates and subsidiaries of
the employer, individual proprietors affiliated with the employer, and
partners and employees of individuals affiliated with the employer and
of firms controlled by the employer.

(d) Anything in this chapter to the contrary notwithstanding, any
group annuity contract may provide for readjustment of the rate of
premium consideration or deposit based on the experience thereunder at
the end of the first contract year or of any subsequent contract year,
and such readjustment may be made retroactive only for such contract
year. Any such rate readjustment shall be computed on a basis which is
equitable to all group annuity contracts.

(e) No domestic, foreign or alien life insurance company shall be
permitted to do business in this state if it hereafter issues, within or
without this state, any group annuity contract which on its issuance
does not appear to be self-supporting on reasonable assumptions as to
interest, mortality and expense.