NY Ins L § 1110 (2021)
2021 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.