New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter III - Policy and Certificate Provisions › Subchapter A - Life, Accident and Health Insurance › Part 50 - Separate Accounts and Separate Account Contracts › Subpart 50-1 - Separate Accounts and Separate Account Contracts Prior to January 1, 2023 › Section 50-1.7 - Standard provisions in separate account annuity contracts

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Individual
					 separate account annuity contracts. No individual separate account annuity
					 contract shall be delivered or issued for delivery in this State unless it
					 contains in substance the following provisions, to the extent that such
					 provisions are applicable to such contract, or provisions which in the opinion
					 of the superintendent are appropriate to individual separate account annuity
					 contracts and are more favorable to the holders of such contracts:
(1) A provision that there shall be a period
					 of grace, either of 30 days or of one month, within which any stipulated
					 payment to the insurer falling due after the first may be made, during which
					 period of grace the contract shall continue in full force. The contract shall
					 include a statement of the basis for determining the date as of which any such
					 payment received during the period of grace shall be applied to produce the
					 values arising therefrom under the contract.
(2) A provision that at any time within one
					 year from the date of default in making stipulated payments to the insurer,
					 during the life of the annuitant and unless the cash surrender value has been
					 paid, the contract will be reinstated, on the application of the person
					 entitled thereto pursuant to the provisions of the contract, upon payment to
					 the insurer of such overdue payments as required by the contract and of all
					 indebtedness to the insurer on the contract. The contract shall include a
					 statement of the basis for determining the date as of which the amount to cover
					 such overdue payments and indebtedness shall be applied to produce the values
					 arising therefrom under the contract. Where appropriate, the contract may
					 contain a provision requiring, as a condition for reinstatement, evidence of
					 insurability, including good health, reasonably satisfactory to the
					 insurer.
(3) A provision specifying
					 the options available, prior to the commencement date of the annuity, in the
					 event of default in a stipulated payment or of surrender of the contract. Such
					 options shall include an option to receive the cash surrender value of the
					 contract or an option to receive a paid-up annuity to commence at the maturity
					 date provided in the contract, if the contract is not surrendered for cash. The
					 contract shall specify the method by which, and the date as of which, the
					 accumulated value of the contract shall be determined and may provide for the
					 deduction therefrom of a reasonable charge for unamortized acquisition expenses
					 in arriving at the amount of cash surrender value payable. If only the option
					 to receive a paid-up annuity is available, the accumulated value of the
					 contract in the separate account or accounts of the company at the time of
					 default shall, at the option of the contractholder, be transferred to the
					 general account of the company to provide a fixed dollar paid-up annuity. Any
					 amounts so transferred shall be considered as cash surrender values for the
					 purpose of paragraph (4) of this section. The kind and amount of the paid-up
					 annuity and the conditions of its payment shall be in accordance with the
					 provisions of the contract and the purchase rates stipulated therein.
(4) In connection with a reservation of right
					 to defer cash surrender payments, any individual separate account annuity
					 contract shall provide, if and to the extent permitted or required under the
					 Federal Investment Company Act of 1940, as amended, and any other applicable
					 Federal or State law, either:
(i) that the
					 company reserves the right, at its option, to defer the determination and
					 payment of any cash surrender value for a period of six months after demand
					 therefor with surrender of the contract;
(ii) that the company reserves the right, at
					 its option, to defer the determination and payment of any cash surrender value
					 for a period of nine months in which installments will be paid; or
(iii) that the company reserves the right, at
					 its option, to defer the payment of any cash surrender value in accordance with
					 the deferment provisions of the Federal Investment Company Act of 1940, as
					 amended.