2022 New York Laws
ISC - Insurance
Article 11 - Licensing of Insurers
1110 - Charitable Annuity Societies Exempt; Special Permits.

§  1110. Charitable annuity societies exempt; special permits. (a) The
superintendent may, in his 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  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  on  the  basis  of  the  annuity  standard  adopted  by it for
calculating its reserves 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.
  (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.