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History
- Referred to insurance
- Delivered to assembly
- Passed senateVote 59–0
- Advanced to third reading
- 2nd report cal.
- 1st report cal.844
- Referred to insurance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to admitted assets for annuity risk where a single premium annuity contract has been purchased
In Assembly Committee · Insurance · Sponsor Joseph Morelle
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S7310
Title of bill
An act to amend the insurance law, in relation to admitted assets for annuity risk where a single premium annuity contract has been purchased
Purpose
To allow charities that issue charitable gift annuities (CGAs) to reduce the amount of required reserves by purchasing an annuity contract from a New York admitted insurer.
Summary of provisions
Amends section 1110(b) of the insurance law to specifically provide that CGA reserves may be reduced with the purchase of a single premium life annuity contract from a life insurance company authorized to do business in New York State.
Justification
This legislation amends the insurance law to allow charities that issue charitable gift annuities to reduce the amount of required reserves by purchasing an annuity contract from a New York admitted insurer. This change would encourage CGA issuers to include commercial annuities among the available tools for risk management. Enabling prudent management of CGA risk benefits New York charities that incur obligations to their donors with CGAs. Encouraging charities to reinsure CGAs with commercial annuities clearly benefits New York consumers, since they not only will hold an obligation from an organization employing robust risk management, they will also be better protected by having not one but two issuers backing their right to payments, both of which are subject to supervision by the New York Department of Financial Services.
While the insurance law assumes that some CGAs will be reinsured, and specifically provides for a deduction for reinsurance in the calculation of required reserves, the statute anticipates reinsurance in the technical sense, with a treaty requirement which effectively makes this insurance alternative unavailable to charities issuing CGAs. Allowing CGA issuers to reduce required reserves by purchasing a commercial annuity will provide additional consumer protection to New York annuitants and enhanced risk management to New York charities.
The proposed change will also bring New York into alignment on this issue with the other states that regulate CGAs, and with model legislation adopted by the National Association of Insurance Commissioners (NAIC).
Legislative history
New bill.
Fiscal implications
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.