S 5308: Requires self-supporting life insurance and annuity business policies.

  
  STATE OF NEW YORK ________________________________________________________________________ 5308 2025-2026 Regular Sessions  IN SENATE February 20, 2025 ___________ Introduced by Sen. BAILEY -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance AN ACT to amend the insurance law, in relation to ensuring life insur- ance and annuity business policies are self-supporting; and providing for the repeal of section 4228 of such law relating thereto The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 4228 of the insurance law is REPEALED. 2 § 2. The insurance law is amended by adding a new section 4228 to read 3 as follows: 4 § 4228. Life insurance and annuity business; policy to be self-sup- 5 porting. No company shall offer for sale any life insurance policy form 6 or annuity contract form or any debit life insurance policy form which 7 shall not appear to be self-supporting on reasonable assumptions as to 8 interest, mortality, persistency, taxes, agents' and brokers' survival 9 and expenses resulting from the sale of the policy or contract form. For 10 all such forms offered for sale in this state, and for all forms filed 11 for use outside this state by domestic life insurance companies, a 12 statement that the requirements of this section have been met, signed by 13 an actuary who is a member in good standing of the American Academy of 14 Actuaries and meets the requirements prescribed by the superintendent by 15 regulation shall be submitted with each such life insurance policy or 16 annuity contract form filed pursuant to paragraph one or six of 17 subsection (b) of section three thousand two hundred one of this chap- 18 ter. A demonstration supporting each such statement, signed by an actu- 19 ary meeting such qualifications, shall be retained in the company's home 20 office, while such form is being offered in this state and for a period 21 of six years thereafter and be available for inspection. The super- 22 intendent shall promulgate a regulation establishing the guidelines 23 applicable to such demonstration. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD09631-01-5 
 S. 5308 2 1 § 3. This act shall take effect on the first of January next succeed- 2 ing the date on which it shall have become a law and shall apply to any 3 life insurance policy, annuity contract, or debit life insurance policy 4 entered into on or after such date. Effective immediately, the addition, 5 amendment and/or repeal of any rule or regulation necessary for the 6 implementation of this act on its effective date are authorized to be 7 made and completed on or before such effective date.