2006 New York Code - Funding Agreements.

 
    §  3222.  Funding agreements. (a) Any insurer authorized to deliver or
  issue for delivery annuity contracts in the state may deliver  or  issue
  for delivery one or more funding agreements. The issuance or delivery of
  such  funding  agreements  shall  not  be  deemed  to be doing a kind of
  business specifically authorized by section  one  thousand  one  hundred
  thirteen  of  this  chapter  or  engaging  in any business authorized by
  section  one  thousand  seven  hundred   fourteen   of   this   chapter.
  Notwithstanding  the definition of "insurance contract" in paragraph one
  of subsection (a) of section  one  thousand  one  hundred  one  of  this
  chapter,  the  issuance or delivery of a funding agreement by an insurer
  in this state shall constitute doing an insurance business herein.
    (b) Such funding agreements may be issued to persons authorized  by  a
  state  or  foreign  country  to  engage  in  an  insurance  business  or
  subsidiaries of such persons. Such funding agreements may also be issued
  to entities other than persons authorized  to  engage  in  an  insurance
  business  (and  subsidiaries of such persons) and to individuals for the
  following purposes: (i) to fund benefits under any employee benefit plan
  as defined in the federal Employee Retirement  Income  Security  Act  of
  1974,  29 U.S.C. §§ 1001 et seq, maintained in the United States or in a
  foreign country, (ii) to fund the activities of any organization  exempt
  from taxation under section five hundred one (c) of the Internal Revenue
  Code  or  of  any  similar organization in any foreign country, (iii) to
  fund any program of the government of the United States, the  government
  of  any  state, foreign country or political subdivision thereof, or any
  agency or instrumentality thereof, (iv) to fund any agreement  providing
  for  periodic  payments  in  satisfaction  of a claim or (v) to fund any
  program of an institution which has  assets  in  excess  of  twenty-five
  million dollars.
    (c)  No amounts shall be guaranteed or credited under any such funding
  agreement except upon reasonable assumptions as to investment income and
  expenses and on a basis equitable to all holders of  funding  agreements
  of a given class. Such funding agreements shall not provide for payments
  to or by the insurer based on mortality or morbidity contingencies.
    (d)  Amounts  paid to the insurer, and proceeds applied under optional
  modes of settlement, under such funding agreements may be  allocated  by
  the  insurer  to  one or more separate accounts pursuant to section four
  thousand two hundred forty of this chapter.
    (e) (1)  The  superintendent  may  promulgate  reasonable  regulations
  relating to (i) the standards to be followed in the approval of forms of
  such  funding agreements, (ii) the reserves to be maintained by insurers
  issuing such funding agreements, (iii) the accounting and  reporting  of
  funds  credited  under  such  funding agreements, (iv) the disclosure of
  information to be given to  holders  and  prospective  holders  of  such
  funding  agreements,  and  (v)  the  qualification  and  compensation of
  persons selling such funding agreements on behalf of insurers.
    (2) Notwithstanding any other provision  of  law,  the  superintendent
  shall  have  sole  authority  to  regulate the issuance and sale of such
  funding  agreements,  including  the  persons   selling   such   funding
  agreements on behalf of insurers.