N.Y. Insurance Law § 3223: Group annuity contracts; standard provisions as to contractual rights and responsibilities of contract holders, certificate holders and a...

§ 3223. Group annuity contracts; standard provisions as to contractual

rights and responsibilities of contract holders, certificate holders and

annuitants, and insurers. Except as otherwise provided in section four

thousand two hundred forty of this chapter, every group annuity contract

delivered or issued for delivery in this state and every certificate

used in connection therewith, other than a certificate to which

subsection (a) of section three thousand two hundred nineteen of this

article applies, shall contain in substance the following provisions to

the extent that such provisions are applicable or provisions which the

superintendent deems to be more favorable to annuitants, or not less

favorable to annuitants and more favorable to the contract holders:

(a) in any such contract requiring payments to be made to the insurer,

that, after the first payment, there shall be a grace period of

thirty-one days following the due date of any subsequent payment within

which the payment to be remitted to the insurer may be made. During

such grace period, the contract shall continue in full force;

(b) specifying the document or documents, which shall include the

contract and, if a copy is attached thereto, the application of the

contract holder, constituting the entire contract between the parties;

(c) that if the age or sex of any person, or any other fact affecting

the amount or date of any payment by or to the insurer, has been

misstated, there will be an equitable adjustment, as provided in the

contract, of the benefits payable thereunder or of the payments to be

made to the insurer. Each certificate issued under the contract shall

contain an appropriate reference to such provision for equitable

adjustment;

(d) in any such contract providing for the maintenance by the insurer

of one or more accounts for each annuitant and providing that

withdrawals may be made from such accounts only with the annuitant's

consent or upon termination of the annuitant's employment, that the

insurer shall issue a certificate for delivery to each annuitant who

contributes to the contract, specifying the nature and basis of

ascertainment of benefits, which are deemed by the superintendent to be

equitable to the annuitant and the contract holder, in the event of

either the termination of the annuitant's employment, except by death,

or the discontinuance of payments under the contract. The contract and

certificate shall provide that if the annuitant dies before the

commencement date of the annuity, the insurer shall pay a death benefit

at least equal to the accumulated amount in the annuitant's accounts

arising from the annuitant's contributions. Nothing herein shall be

construed to require that the contract or certificate contain the same

provisions required for contracts or certificates subject to section

four thousand two hundred twenty-three of this chapter;

(e) that the insurer shall issue for delivery to each person to whom

annuity benefits are being paid thereunder a certificate setting forth a

statement in substance of the benefits to which such person is entitled

under such contract.