N.Y. ISC Law § 1110 — New York Code / Act ISC / Article 11 / Section 1110
Charitable annuity societies exempt; special permits
Status: in_force

§ 1110. Charitable annuity societies exempt; special permits.  (a) The\nsuperintendent may, in his or her discretion, issue a special permit to\nmake annuity agreements with donors to any duly organized domestic or\nforeign non-stock corporation or association conducted without profit\nand engaged in active operation for at least ten years prior thereto\nsolely in bona fide charitable, religious, missionary, educational or\nphilanthropic activities. The permit shall authorize such corporation or\nassociation to receive gifts of cash and other property conditioned\nupon, or in return for, its agreement to pay an annuity to the donor, or\nhis or her nominee, and to make and carry out such annuity agreement.\nEvery such corporation or association shall, before making such\nagreement, file with the superintendent copies of its forms of\nagreements with annuitants and a schedule of its maximum annuity rates,\nwhich shall be computed so as to return to it upon the annuitant's death\na residue at least equal to one-half the original gift or other\nconsideration for such annuity. The maximum annuity rates may be unisex\nin nature and shall be computed on the basis of currently applicable\nmortality tables for calculating the reserves for individual annuities\npursuant to section four thousand two hundred seventeen of this chapter.\nThe yield of the ten year treasury bond plus two percent as of April\nthirtieth, rounded to the nearest 0.25%, shall be used to calculate the\nmaximum annuity rates to become effective as of July first of the same\nyear and the ten year treasury bond yield plus two percent as of October\nthirty-first, rounded to the nearest 0.25%, shall be used to calculate\nthe maximum annuity rates to become effective as of January first of the\nfollowing year. No other factors shall be used to calculate the maximum\nannuity rates.\n  (b) Every such domestic corporation or association shall maintain\nadmitted assets at least equal to the greater of (i) the sum of its\nreserves on its outstanding agreements, calculated in accordance with\nsection four thousand two hundred seventeen of this chapter, and a\nsurplus of ten per centum of such reserves, or (ii) the amount of one\nhundred thousand dollars. In determining such reserves a deduction shall\nbe made for all or any portion of an annuity risk which is reinsured by\na life insurance company authorized to do business in this state. The\nrequired admitted assets shall be invested in accordance with the\nprudent investor standard as defined in section 11-2.3 of the estates,\npowers and trusts law and shall not be subject to the investment\nlimitations set forth in this chapter. Such assets shall be segregated\nas separate and distinct funds, independent of all other funds of such\ncorporation or association, and shall not be applied to pay its debts\nand obligations or for any purpose except the aforesaid annuity\nbenefits.\n  (c) No such corporation or association organized under the laws of\nanother state shall be permitted to make such annuity agreements in this\nstate unless it complies with all requirements of this section imposed\nupon like domestic corporations or associations.\n  (d) No such corporation or association shall make or issue in this\nstate any annuity contract before obtaining a permit issued in\naccordance with the provisions of this section except that if its\nrequisite reserve on its outstanding annuity agreements computed in\naccordance with section four thousand two hundred seventeen of this\nchapter does not exceed the amount of one million dollars, it may make\ngift annuity agreements in this state and shall be exempted from\nsecuring a permit provided it maintains the reserve required by section\nfour thousand two hundred seventeen of this chapter and a surplus of at\nleast twenty-five per centum of such reserve. If the superintendent\nfinds, after notice and hearing, that any such corporation or\nassociation, having such a permit, has failed to comply with the\nrequirements of this section, the superintendent may revoke or suspend\nsuch permit or order it to cease making new annuity contracts until it\ncomplies. The superintendent may, in the superintendent's discretion,\neither dispense with the requirement of annual statements by such\ncorporations or associations or accept a sworn statement by two or more\nof its principal officers, in such form as will satisfy the\nsuperintendent that the requirements of this section are being complied\nwith.\n  (e) Except as provided in this section every such corporation or\nassociation shall be exempt from the provisions of this chapter, other\nthan articles one, two, three, twenty-five and seventy-four of this\nchapter.\n  (f) The superintendent may, in the superintendent's discretion,\nexamine any such corporation or association that is exempt from\nobtaining a permit pursuant to subsection (d) of this section.\n