NY Ins L § 4218 (2021)
2021 New York Laws ISC - Insurance Article 42 - Life Insurance Companies and Accident and Health Insurance Companies and Legal Services Insurance Companies 4218 - When Actual Premium Is Less Than Net Premium; Minimum Reserve.

§ 4218. When actual premium is less than net premium; minimum reserve. (a)  (1)  When  the  actual  premium  or  consideration charged for life insurance under any life insurance policy, issued by any life  insurance company  doing  business  in  this  state, is less than the modified net premium calculated on the basis of the commissioners  reserve  valuation method  as  defined  in  paragraph six of subsection (c) of section four thousand two hundred seventeen of this article and  using  the  rate  of interest  and  mortality  tables  contained  in  the  minimum  valuation standards in paragraphs two and four of such subsection, or in the  case of  future renewals under a renewable term insurance policy issued prior to the operative date of subsection (k) of  section  four  thousand  two hundred  twenty-one  of  this  article,  the  Modern CSO Mortality Table published in the Transactions of the Society of  Actuaries,  Vol.  XXVII (1975),  the  minimum  reserve  required  for  such  policy shall be the greater of either the reserve  calculated  according  to  the  mortality table,  rate  of  interest, and method actually used for such policy, or the reserve calculated by the commissioners reserve valuation method  as defined  in paragraph six of subsection (c) of section four thousand two hundred seventeen of this article and using the mortality table and rate of interest prescribed in this section for calculating the commissioners reserve  valuation  method  modified  net  premium  and  replacing  such modified  net  premium  by  the actual premium charged for the policy in each contract year for which  such  modified  net  premium  exceeds  the actual premium.  (2)  This  section  shall  not authorize any such company to issue any policy or contract in violation of any other provision of this chapter.  (b) (1) In the case of any life insurance policy issued  on  or  after January first, nineteen hundred eighty-six, for which the actual premium in  the  first policy year exceeds that of the second year and for which no comparable additional benefit is provided in the first year for  such excess and which provides an endowment benefit or a cash surrender value or  a combination thereof in an amount greater than such excess premium, the foregoing provisions of subsection (a) hereof shall be applied as if the method actually used in calculating the reserve for such policy were the method described in paragraph six of subsection (c) of section  four thousand  two hundred seventeen of this article, ignoring the proviso of such paragraph.  (2) The minimum reserve at each policy anniversary of  such  a  policy shall  be  the  greater  of the minimum reserve calculated in accordance with paragraph six of  subsection  (c)  of  section  four  thousand  two hundred  seventeen  of  this  article,  including  the  proviso  of that paragraph, and the minimum reserve calculated in  accordance  with  this section.