Section 4238. Group annuity contracts

(a) Any policy or contract, except a
  joint, reversionary or survivorship annuity contract, whereby  annuities
  are payable dependent upon the continuance of the lives of more than one
  person,  shall  be deemed a group annuity contract. The party or parties
  to whom or to which such contract is issued, as herein  provided,  shall
  be  deemed  the  holder  of such contract. The term "annuitant", as used
  herein, refers to any person upon whose continued life such  annuity  is
  dependent.
    (b)  No authorized insurer shall deliver or issue for delivery in this
  state any group annuity contract except the following:
    (1) A contract issued  to  an  employer,  which  permits  all  of  the
  employees  of such employer or of any specified class or classes thereof
  to become annuitants.
    (2) A contract issued to an employers' association which  permits  all
  of  the employees of such employers or of any specified class or classes
  thereof to become annuitants. Such employers'  association  may  provide
  for the representation of annuitants on its board of directors.
    (3)  A  contract  issued  to  a  labor  union which permits all of the
  members of such union or of any specified class or  classes  thereof  to
  become annuitants.
    (4)  A  contract  issued  to the trustees of a trust established by an
  employer, or by an employers' association,  or  by  one  or  more  labor
  unions,  or by one or more employers and one or more labor unions, which
  permits all of the employees of the employers or all of the  members  of
  the  unions,  or  all  of  any  class  or  classes  thereof,  to  become
  annuitants.
    (5) A contract issued to an association of  persons  having  a  common
  interest,  calling  or  profession  who  constitute a homogeneous group,
  which association has a constitution and by-laws and  is  organized  and
  maintained  in good faith for purposes other than obtaining annuities or
  to trustees of a trust established by such an association which  permits
  all  members  of the association and their employees or of any specified
  class or classes thereof to become annuitants.
    (6) A contract issued to a bank or trust company or trustees of one or
  more trusts which permit individuals for whom contributions are made  to
  individual  retirement  accounts  or for individual retirement annuities
  described in section four hundred eight of the Internal Revenue Code  of
  1954 to become annuitants.
    (7)  A  contract  issued  to the trustees of one or more trusts (other
  than trusts described in paragraph four hereof) for  employees  of  more
  than  one  employer  which  permits  all  of  the employees of each such
  employer or  of  any  specified  class  or  classes  thereof  to  become
  annuitants,  provided  that  if payments made to the insurer are derived
  wholly from funds contributed by such employees, the insurer shall issue
  a certificate complying with the requirements of this chapter applicable
  to individual annuities for delivery to each employee who contributes to
  the contract.
    (8) A contract issued to the trustees of  a  foundation  or  endowment
  fund  which  permits  any  specified  class  or  classes of professional
  persons to become annuitants.
    (9) A contract issued to an association, or the trustee or trustees of
  a trust established, or participated in, by one  or  more  associations,
  which  permits  all  of  the  members of the associations, or all of any
  specified class or classes thereof, to become annuitants subject to  the
  following:
    each association shall have:
    (A) a minimum of two hundred covered members at the contract's date of
  issue;

    (B)   been  organized  and  maintained  in  good  faith  for  purposes
  principally other than that of obtaining annuities;
    (C) been in active existence for at least two years; and
    (D) a constitution and by-laws which provide that:
    (i)  the  association holds regular meetings not less than annually to
  further purposes of the association;
    (ii) the association collects  dues  or  solicits  contributions  from
  members; and
    (iii)  the  members  have  voting privileges and representation on the
  governing board and committees.
    (10) A contract issued to any organization, or the trustee or trustees
  of a trust established, or participated in,  by  one  or  more  of  such
  organizations which permits certain persons to become annuitants subject
  to the following:
    (A) the organization must be:
    (i)  a  bank, retailer, or other issuer of a credit card, charge card,
  or payment card which can be used to buy  goods  or  services,  and  the
  contract must cover holders of that card; or
    (ii)  a bank, savings and loan association, credit union, mutual fund,
  money market fund, stockbroker, or other similar  financial  institution
  regulated  by  state  or  federal  law,  and the contract must cover the
  depositors, account holders, or members of that institution; and
    (B) the organization or organizations shall  have  a  minimum  of  two
  hundred covered persons at the contract's date of issue.
    (11)  A  contract  issued  to the trustees of one or more trusts which
  permits any specified class or classes of  plaintiffs  or  claimants  to
  become  annuitants  with  respect  to  amounts  paid or payable on their
  behalf by way of settlement, judgment or other award. Any such  contract
  or  any certificate issued in connection with such contract shall not be
  subject to section  four  thousand  two  hundred  twenty-three  of  this
  article.
    (c) Payments made to the insurer under a group annuity contract may be
  derived  in  whole  or  in  part  from  funds contributed by the persons
  covered thereunder. A group of employees covered under  a  contract  may
  include  retired  employees, employees of affiliates and subsidiaries of
  the employer, individual proprietors affiliated with the  employer,  and
  partners  and  employees of individuals affiliated with the employer and
  of firms controlled by the employer.
    (d) Anything in this chapter  to  the  contrary  notwithstanding,  any
  group  annuity  contract  may  provide  for  readjustment of the rate of
  premium consideration or deposit based on the experience  thereunder  at
  the  end  of the first contract year or of any subsequent contract year,
  and such readjustment may be made retroactive  only  for  such  contract
  year.  Any  such rate readjustment shall be computed on a basis which is
  equitable to all group annuity contracts.
    (e) No domestic, foreign or alien  life  insurance  company  shall  be
  permitted to do business in this state if it hereafter issues, within or
  without  this  state,  any  group annuity contract which on its issuance
  does not appear to be self-supporting on reasonable  assumptions  as  to
  interest, mortality and expense.