NY Ins L § 3219 (2021)
2021 New York Laws ISC - Insurance Article 32 - Insurance Contracts - Life, Accident and Health, Annuities 3219 - Annuity and Pure Endowment Contracts and Certain Group Annuity Certificates; Standard Provisions as to Contractual Rights and Responsibilities of Cont

§ 3219. Annuity and pure endowment contracts and certain group annuity certificates;   standard   provisions   as  to  contractual  rights  and responsibilities of contract holders, certificate holders and  insurers. (a)  Except  as  provided  in section four thousand two hundred forty of this chapter, every annuity or pure endowment contract  except  a  group annuity  contract,  and every group annuity certificate to which section four thousand two hundred twenty-three of this chapter applies by reason of subsection (b) thereof, or to which section four thousand two hundred twenty-three of this chapter would apply if such certificate were not  a variable  annuity, delivered or issued for delivery in this state, shall contain in substance the following provisions, or provisions  which  the superintendent  deems  to  be  more  favorable  to  the  holders of such contracts or certificates:  (1) In any such contract or certificate requiring payments to be  made to  the  insurer,  that, after the first payment, there shall be a grace period of thirty-one days following  the  due  date  of  any  subsequent payment  within  which  the  payment to the insurer may be made.  During such grace period, the contract or certificate shall  continue  in  full force. If a claim arises under the contract or certificate on account of death  during  the  grace  period, the insurer may deduct from the death benefit, or, in the case of a reversionary annuity, otherwise  called  a survivorship  annuity,  may,  at  its option, reduce annuity payments to take into account the portion of any unpaid payment  applicable  to  the period  ending  with  the  last  day  of  the  month in which such death occurred;  (2) That, with respect to any statements, other than those relating to age, sex, and identity, required as a condition of issuing the  contract or certificate, the contract or certificate shall be incontestable after it has been in force during the lifetime of the person or of each of the persons  as  to  whom  such statements are required, for a period of two years from its date of issue, except  where  payments  required  by  the contract  or  certificate  to be made to the insurer have not been made, and except for violation of the conditions, if any, of the  contract  or certificate  relating  to service in the armed forces; and at the option of the insurer, such contract or certificate may also except  provisions relating to benefits for total and permanent disability and benefits for accidental death;  (3)  That  the  contract,  together with the application therefor if a copy of such application is attached to the contract when issued,  shall constitute the entire contract between the parties;  (4)  That nothing in the group annuity contract invalidates or impairs any right granted to the certificate  holder  by  this  section  or  the certificate;  (5) That if the age or sex of the person or persons upon whose life or lives  the  contract  or  certificate is made or of any of them has been misstated, the amount payable or benefit accruing under the contract  or certificate  shall  be  such  as  the payments to the insurer would have purchased according to the correct age or sex; and that if  the  insurer makes   any   underpayment   or  overpayment  on  account  of  any  such misstatement, the  amount  thereof,  with  interest  at  a  rate  to  be specified  in  the  contract  or  certificate  but not exceeding six per centum per annum, shall be credited to, or charged against, the  current or  next  succeeding payment or payments to be made by the insurer under the contract or certificate;  (6) That the  insurer  shall  annually  ascertain  and  apportion  any divisible surplus accruing on the contract;  (7)  Specifying  the  options  available  upon cessation of payment of considerations under a contract or certificate. Such options, except for  those under a reversionary annuity or pure endowment contract, shall  be in  accordance  with  section  four thousand two hundred twenty-three of this chapter;  (8)  In any such contract or certificate requiring payments to be made to the insurer that at any time within three  years  from  the  date  of default  in  making  payments  to  the insurer unless the cash surrender value has been paid, the contract or certificate shall be reinstated  if the  person  entitled thereto pursuant to the provisions of the contract or certificate  (A) applies to the insurer therefor,  (B) pays to the insurer all overdue payments and all  indebtedness  on the  contract or certificate with interest on such overdue payments at a rate specified in the contract or certificate but not to exceed six  per cent   per   annum,  compounded  annually,  and  interest  on  any  such indebtedness at a rate or rates not exceeding the applicable  loan  rate or  rates  determined in accordance with the contract's or certificate's provisions, and  (C) where required by the insurer as  a  condition  of  reinstatement, provides  evidence  of  insurability  including  good  health reasonably satisfactory to the insurer;  (9) That upon surrender of the contract or certificate, together  with a  written  request  for cancellation, to the insurer during a period of not less than ten days nor more than  thirty  days  from  the  date  the contract or certificate was delivered to the holder thereof, the insurer refund   either   (i)   any  consideration  paid  for  the  contract  or certificate, including any fees or other charges or, if the contract  or certificate,  or  notice attached thereto, so provides, and the contract or certificate is subject to the provisions of section four thousand two hundred twenty-three of this chapter and provides for the  determination of  any  cash  surrender  benefits  in  accordance  with  a market-value adjustment formula, (ii) the  amount  of  the  cash  surrender  benefits provided  under  the contract or certificate plus the amount of all fees and other charges deducted from gross considerations  or  imposed  under the contract or certificate. This provision shall appear in the contract or  certificate  or  in a notice attached to it; provided, however, that the contract or certificate sold by mail order must contain a  provision permitting  the  contract  or certificate holder a thirty day period for such surrender.  (b) Any of the provisions of subsection (a)  hereof  or  portions  not applicable   to  non-participating  contracts  or  certificates  or  not applicable to contracts or certificates for which a  single  payment  to the  insurer  is made shall, to that extent, not be incorporated in such contract or certificate. Paragraphs one and eight of subsection  (a)  of this  section  shall  not apply to contracts or certificates that do not require payments to be made to the insurer. An  insurer  shall  issue  a certificate  for  delivery  to  a  person  covered under a group annuity contract  if  such  certificate,  when  issued,  would  be  subject   to subsection (a) of this section.  (c) Annuity contracts subject to this section may permit an adjustable maximum  rate of interest on loans. Any such contract shall provide that loans shall bear interest at a rate  not  in  excess  of  an  adjustable maximum  interest  rate  established from time to time by the insurer as permitted by law, and shall specify the regular intervals at  which  the interest  rate  is  to  be determined which shall be at least once every twelve months, but not more frequently than  once  in  any  three  month period.  (d)  This  section shall not apply to contracts for deferred annuities or reversionary annuities upon the lives  of  beneficiaries  under  life  insurance policies, nor, except to the extent expressly provided herein, to group annuity contracts.