New York state has a new law that requires sellers of equity indexed annuities and life contracts to show whether and how the products handle stock dividend payments.
The new statute, Section 3209(b)(2)(C) of the New York Insurance Law, requires sellers of indexed products to provide dividend treatment disclosure whether the contracts are illustrated or not, officials report in a new batch of guidance.
The prospective purchaser must receive the dividend treatment disclosure by the time the prospect files an application.
