New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter B - Life Insurers › Part 99 - VALUATION OF ANNUITY, SINGLE PREMIUM LIFE INSURANCE, GUARANTEED INTEREST CONTRACT AND OTHER DEPOSIT RESERVES › Section 99.3 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
As used in this Part, the following terms have the
					 following meanings:
(a)
Account value
means, with respect to a contract, the aggregate
				  net considerations credited to the contract plus all additional amounts,
				  including interest and dividends credited to the contract, less partial
				  withdrawals (but not loans), and less all charges and fees imposed against the
				  accumulated amount under the contract other than surrender charges and
				  market-value adjustments.
(b)
Actuarial opinion and memorandum
means the opinion and
				  memorandum of an appointed actuary submitted in accordance with sections 4217 (e) and
				  4517  of the Insurance Law.
(c)
Annuity purchase amount
means the dollar amount which is applied at the time of annuitization under a
				  deferred annuity contract. This value could be greater than or less than the
				  account value.
(d)
Annuity
				  weighting factors
means the weighting factors referred to in section 4217 (c)(4)(D)(iii)  of the
				  Insurance Law.
(e)
Annuity
				  valuation formula
means the formula referred to in section 4217 (c)(4)(B)(ii)  of the
				  Insurance Law and used to determine the calendar year statutory valuation
				  interest rate for certain contracts.
(f)
Annuity 2000 Mortality
				  Table
means that mortality table shown in section
				  99.10(h)(2)(i) 
				  (
b
) of this Part.
(g)
Appointed actuary
means
				  the individual defined in section
				  95.4(e) 
				  of this Title.
(h)
Bail-out
				  rate
means the threshold interest rate below which any declared
				  interest rate will trigger the option to surrender a contract with waiver of
				  any applicable surrender charge.
(i)
Book value
means, for
				  assets, the value prescribed by section 1414  of the Insurance Law and for reserves
				  the value prescribed by articles 42 and 45 of the Insurance Law.
(j)
C-3 risk
means the risk
				  that interest rates will change and cause an adverse deviation in the amount or
				  timing of asset or liability cash flows.
(k)
Cohort mortality table
means a mortality table containing a set of mortality rates that decrease for a
				  given age from one year to the next and is based on a combination of a period
				  table and a projection scale that contains rates of mortality
				  improvement.
(l)
Company
means any life insurance company, fraternal benefit
				  society or accredited life reinsurer subject to the provisions of this
				  Part.
(m)
Contract
means an annuity contract, annuity benefit (whether or not issued as a
				  supplementary contract), guaranteed interest contract or funding agreement, or
				  any benefit thereunder assumed by a reinsurer.
(n)
Current interest rate
means the sequence of interest rates currently in effect for determining
				  contract benefits, whether contractually guaranteed or currently declared, for
				  a specified period. It includes any additional interest in excess of the
				  long-term minimum contractual guarantee.
(o)
Guarantee duration
means
				  (unless otherwise defined herein):
(1) with
				  respect to benefits or contracts with cash settlement options, the number of
				  years for which the interest rates provided in, or declared pursuant to, the
				  contract are guaranteed to exceed the calendar year statutory valuation
				  interest rate for life insurance policies with guarantee durations in excess of
				  20 years; and
(2) with respect to
				  benefits or contracts with no cash settlement options, the number of years from
				  the date of issue or date of purchase to the date annuity benefits are
				  scheduled to commence.