2023 New York Laws › ISC - Insurance › Article 32 - Insurance Contracts - Life, Accident and Health, Annuities › 3222 - 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.