Section 1110. Charitable annuity societies exempt; special permits

(a) The
  superintendent may, in his discretion, issue a special  permit  to  make
  annuity agreements with donors to any duly organized domestic or foreign
  non-stock  corporation  or  association  conducted  without  profit  and
  engaged in active operation for at least ten years prior thereto  solely
  in   bona   fide   charitable,  religious,  missionary,  educational  or
  philanthropic activities. The permit shall authorize such corporation or
  association to receive gifts of  cash  and  other  property  conditioned
  upon, or in return for, its agreement to pay an annuity to the donor, or
  his  nominee,  and  to  make and carry out such annuity agreement. Every
  such corporation or association shall,  before  making  such  agreement,
  file  with  the  superintendent  copies  of its forms of agreements with
  annuitants and a schedule of its maximum annuity rates, which  shall  be
  computed  on  the  basis  of  the  annuity  standard  adopted  by it for
  calculating its reserves so as to return  to  it  upon  the  annuitant's
  death  a  residue  at least equal to one-half the original gift or other
  consideration for such annuity.
    (b) Every such domestic  corporation  or  association  shall  maintain
  admitted  assets  at  least  equal  to the greater of (i) the sum of its
  reserves on its outstanding agreements, calculated  in  accordance  with
  section  four  thousand  two  hundred  seventeen  of this chapter, and a
  surplus of ten per centum of such reserves, or (ii) the  amount  of  one
  hundred thousand dollars. In determining such reserves a deduction shall
  be  made for all or any portion of an annuity risk which is reinsured by
  a life insurance company authorized to do business in  this  state.  The
  required  admitted  assets  shall  be  invested  in  accordance with the
  prudent investor standard as defined in section 11-2.3 of  the  estates,
  powers  and  trusts  law  and  shall  not  be  subject to the investment
  limitations set forth in this chapter. Such assets shall  be  segregated
  as  separate  and distinct funds, independent of all other funds of such
  corporation or association, and shall not be applied to  pay  its  debts
  and  obligations  or  for  any  purpose  except  the  aforesaid  annuity
  benefits.
    (c) No such corporation or association organized  under  the  laws  of
  another state shall be permitted to make such annuity agreements in this
  state  unless  it complies with all requirements of this section imposed
  upon like domestic corporations or associations.
    (d) No such corporation or association shall make  or  issue  in  this
  state   any  annuity  contract  before  obtaining  a  permit  issued  in
  accordance with the provisions  of  this  section  except  that  if  its
  requisite  reserve  on  its  outstanding  annuity agreements computed in
  accordance with section four thousand  two  hundred  seventeen  of  this
  chapter  does not exceed the amount of five hundred thousand dollars, it
  may make gift annuity agreements in this state  and  shall  be  exempted
  from  securing  a  permit  provided it maintains the reserve required by
  section four thousand two  hundred  seventeen  of  this  chapter  and  a
  surplus  of  at  least  twenty-five  per  centum of such reserve. If the
  superintendent  finds,  after  notice  and  hearing,   that   any   such
  corporation  or  association, having such a permit, has failed to comply
  with the requirements of this section, he may  revoke  or  suspend  such
  permit  or  order  it  to  cease  making  new annuity contracts until it
  complies. The superintendent may, in  his  discretion,  either  dispense
  with  the  requirement  of  annual  statements  by  such corporations or
  associations or accept a sworn statement by two or more of its principal
  officers, in such form as  will  satisfy  the  superintendent  that  the
  requirements of this section are being complied with.
    (e)  Except  as  provided  in  this  section every such corporation or
  association shall be exempt from the provisions of this  chapter,  other

  than  articles  one,  two,  three,  twenty-five and seventy-four of this
  chapter.