§ 3219. Annuity and pure endowment contracts and certain group annuity\ncertificates; standard provisions as to contractual rights and\nresponsibilities of contract holders, certificate holders and insurers.\n(a) Except as provided in section four thousand two hundred forty of\nthis chapter, every annuity or pure endowment contract except a group\nannuity contract, and every group annuity certificate to which section\nfour thousand two hundred twenty-three of this chapter applies by reason\nof subsection (b) thereof, or to which section four thousand two hundred\ntwenty-three of this chapter would apply if such certificate were not a\nvariable annuity, delivered or issued for delivery in this state, shall\ncontain in substance the following provisions, or provisions which the\nsuperintendent deems to be more favorable to the holders of such\ncontracts or certificates:\n (1) In any such contract or certificate requiring payments to be made\nto the insurer, that, after the first payment, there shall be a grace\nperiod of thirty-one days following the due date of any subsequent\npayment within which the payment to the insurer may be made. During\nsuch grace period, the contract or certificate shall continue in full\nforce. If a claim arises under the contract or certificate on account of\ndeath during the grace period, the insurer may deduct from the death\nbenefit, or, in the case of a reversionary annuity, otherwise called a\nsurvivorship annuity, may, at its option, reduce annuity payments to\ntake into account the portion of any unpaid payment applicable to the\nperiod ending with the last day of the month in which such death\noccurred;\n (2) That, with respect to any statements, other than those relating to\nage, sex, and identity, required as a condition of issuing the contract\nor certificate, the contract or certificate shall be incontestable after\nit has been in force during the lifetime of the person or of each of the\npersons as to whom such statements are required, for a period of two\nyears from its date of issue, except where payments required by the\ncontract or certificate to be made to the insurer have not been made,\nand except for violation of the conditions, if any, of the contract or\ncertificate relating to service in the armed forces; and at the option\nof the insurer, such contract or certificate may also except provisions\nrelating to benefits for total and permanent disability and benefits for\naccidental death;\n (3) That the contract, together with the application therefor if a\ncopy of such application is attached to the contract when issued, shall\nconstitute the entire contract between the parties;\n (4) That nothing in the group annuity contract invalidates or impairs\nany right granted to the certificate holder by this section or the\ncertificate;\n (5) That if the age or sex of the person or persons upon whose life or\nlives the contract or certificate is made or of any of them has been\nmisstated, the amount payable or benefit accruing under the contract or\ncertificate shall be such as the payments to the insurer would have\npurchased according to the correct age or sex; and that if the insurer\nmakes any underpayment or overpayment on account of any such\nmisstatement, the amount thereof, with interest at a rate to be\nspecified in the contract or certificate but not exceeding six per\ncentum per annum, shall be credited to, or charged against, the current\nor next succeeding payment or payments to be made by the insurer under\nthe contract or certificate;\n (6) That the insurer shall annually ascertain and apportion any\ndivisible surplus accruing on the contract;\n (7) Specifying the options available upon cessation of payment of\nconsiderations under a contract or certificate. Such options, except for\nthose under a reversionary annuity or pure endowment contract, shall be\nin accordance with section four thousand two hundred twenty-three of\nthis chapter;\n (8) In any such contra
‹ Prev All New York sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.