STATE OF NEW YORK ________________________________________________________________________ 7152 2017-2018 Regular Sessions IN ASSEMBLY April 10, 2017 ___________ Introduced by M. of A. OTIS -- read once and referred to the Committee on Insurance AN ACT to amend the insurance law, in relation to annuity dividend rein- vestment The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph 6 of subsection (b) of section 4231 of the insur- 2 ance law is amended to read as follows: 3 (6) In the case of any individual term policy [and of every individual 4 participating annuity] or pure endowment contract, the dividends so 5 apportioned shall be applicable, at the election of the holder of such 6 policy or contract, in accordance with the options specified in subpara- 7 graph (A) or (B) of paragraph one hereof or if the policy or contract so 8 provides, subparagraph (D) of paragraph one hereof. In the case of any 9 individual or group participating annuity contract, the dividends so 10 apportioned shall be applicable, at the election of the holder of such 11 individual participating annuity contract or the holder of any certif- 12 icate under such group participating annuity contract, in accordance 13 with the options provided in the contract or certificate under a group 14 contract, which shall include one or more of the options specified in 15 subparagraph (A), (B), (C), or (D) of paragraph one hereof. In the case 16 of any such term policy or annuity or pure endowment contract, the 17 requirement as to notice of election hereinbefore specified shall be 18 applicable, but the option which shall be applied in case the holder of 19 such contract fails to make such election shall be determined by the 20 company with the approval of the superintendent. 21 § 2. This act shall take effect immediately. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06792-03-7