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 › Section 50.7 - 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.