BILL NUMBER: S5308
SPONSOR: BAILEY
 
TITLE OF BILL:
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
 
PURPOSE OF THE BILL:
This bill would repeal section 4228 of the Insurance Law, which has
become superfluous due to other insurer solvency regulatory provisions
that have been enacted since Section 4228's adoption.
 
JUSTIFICATION:
Section 4228 of the Insurance Law establishes a complicated formula for
limiting the expenses that life insurers can incur during the sale of
life insurance policies and annuities.
Section 4228 was first enacted in response to a 1906 report by the
Armstrong Commission; it underwent a significant revision in 1997. The
provisions of section 4228 have been a major impediment to New York
consumers gaining access to innovative life insurance products and
services.
New York has adopted a number of solvency and consumer protection meas-
ures which make section 4228 obsolete.
 
PRIOR LEGISLATIVE HISTORY:
2023-24: S7069 - Referred to Insurance
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
The first of January next succeeding the date on which it shall have
become a law and shall apply to any life insurance policy, annuity
contract, or debit life insurance policy entered into on or after such
date. Effective immediately, the addition, amendment and/or repeal of
any rule or regulation necessary for the implementation of this act on
its effective date are authorized to be made and completed on or before
such effective date.

Statutes affected:
S5308: 4228 insurance law