New York Laws
Article 32 - Insurance Contracts - Life, Accident and Health, Annuities
3219 - Annuity and Pure Endowment Contracts and Certain Group Annuity Certificates; Standard Provisions as to Contractual Rights and Responsibilities of Cont

(1) In any such contract or certificate 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 the insurer may be made. During
such grace period, the contract or certificate shall continue in full
force. If a claim arises under the contract or certificate on account of
death during the grace period, the insurer may deduct from the death
benefit, or, in the case of a reversionary annuity, otherwise called a
survivorship annuity, may, at its option, reduce annuity payments to
take into account the portion of any unpaid payment applicable to the
period ending with the last day of the month in which such death
occurred;
(2) That, with respect to any statements, other than those relating to
age, sex, and identity, required as a condition of issuing the contract
or certificate, the contract or certificate shall be incontestable after
it has been in force during the lifetime of the person or of each of the
persons as to whom such statements are required, for a period of two
years from its date of issue, except where payments required by the
contract or certificate to be made to the insurer have not been made,
and except for violation of the conditions, if any, of the contract or
certificate relating to service in the armed forces; and at the option
of the insurer, such contract or certificate may also except provisions
relating to benefits for total and permanent disability and benefits for
accidental death;
(3) That the contract, together with the application therefor if a
copy of such application is attached to the contract when issued, shall
constitute the entire contract between the parties;
(4) That nothing in the group annuity contract invalidates or impairs
any right granted to the certificate holder by this section or the
certificate;
(5) That if the age or sex of the person or persons upon whose life or
lives the contract or certificate is made or of any of them has been
misstated, the amount payable or benefit accruing under the contract or
certificate shall be such as the payments to the insurer would have
purchased according to the correct age or sex; and that if the insurer
makes any underpayment or overpayment on account of any such
misstatement, the amount thereof, with interest at a rate to be
specified in the contract or certificate but not exceeding six per
centum per annum, shall be credited to, or charged against, the current
or next succeeding payment or payments to be made by the insurer under
the contract or certificate;
(6) That the insurer shall annually ascertain and apportion any
divisible surplus accruing on the contract;
(7) Specifying the options available upon cessation of payment of
considerations under a contract or certificate. Such options, except for

those under a reversionary annuity or pure endowment contract, shall be
in accordance with section four thousand two hundred twenty-three of
this chapter;
(8) In any such contract or certificate requiring payments to be made
to the insurer that at any time within three years from the date of
default in making payments to the insurer unless the cash surrender
value has been paid, the contract or certificate shall be reinstated if
the person entitled thereto pursuant to the provisions of the contract
or certificate
(A) applies to the insurer therefor,
(B) pays to the insurer all overdue payments and all indebtedness on
the contract or certificate with interest on such overdue payments at a
rate specified in the contract or certificate but not to exceed six per
cent per annum, compounded annually, and interest on any such
indebtedness at a rate or rates not exceeding the applicable loan rate
or rates determined in accordance with the contract's or certificate's
provisions, and
(C) where required by the insurer as a condition of reinstatement,
provides evidence of insurability including good health reasonably
satisfactory to the insurer;
(9) That upon surrender of the contract or certificate, together with
a written request for cancellation, to the insurer during a period of
not less than ten days nor more than thirty days from the date the
contract or certificate was delivered to the holder thereof, the insurer
refund either (i) any consideration paid for the contract or
certificate, including any fees or other charges or, if the contract or
certificate, or notice attached thereto, so provides, and the contract
or certificate is subject to the provisions of section four thousand two
hundred twenty-three of this chapter and provides for the determination
of any cash surrender benefits in accordance with a market-value
adjustment formula, (ii) the amount of the cash surrender benefits
provided under the contract or certificate plus the amount of all fees
and other charges deducted from gross considerations or imposed under
the contract or certificate. This provision shall appear in the contract
or certificate or in a notice attached to it; provided, however, that
the contract or certificate sold by mail order must contain a provision
permitting the contract or certificate holder a thirty day period for
such surrender.
(b) Any of the provisions of subsection (a) hereof or portions not
applicable to non-participating contracts or certificates or not
applicable to contracts or certificates for which a single payment to
the insurer is made shall, to that extent, not be incorporated in such
contract or certificate. Paragraphs one and eight of subsection (a) of
this section shall not apply to contracts or certificates that do not
require payments to be made to the insurer. An insurer shall issue a
certificate for delivery to a person covered under a group annuity
contract if such certificate, when issued, would be subject to
subsection (a) of this section.
(c) Annuity contracts subject to this section may permit an adjustable
maximum rate of interest on loans. Any such contract shall provide that
loans shall bear interest at a rate not in excess of an adjustable
maximum interest rate established from time to time by the insurer as
permitted by law, and shall specify the regular intervals at which the
interest rate is to be determined which shall be at least once every
twelve months, but not more frequently than once in any three month
period.
(d) This section shall not apply to contracts for deferred annuities
or reversionary annuities upon the lives of beneficiaries under life

insurance policies, nor, except to the extent expressly provided herein,
to group annuity contracts.

Structure New York Laws