New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter B - Life Insurers › Part 97 - MARKET VALUE SEPARATE ACCOUNTS FUNDING GUARANTEED BENEFITS; SEPARATE ACCOUNTS OPERATIONS AND RESERVE REQUIREMENTS › Section 97.6 - Actuarial opinion and memorandum

Current through Register Vol. 46, No. 28, July 10, 2024
(a) An
				  insurance company that maintains one or more separate accounts subject to this
				  Part shall submit to the superintendent annually an actuarial opinion by March
				  1st and an actuarial memorandum by March 15th following the December 31st
				  valuation date showing the status of such accounts as of December 31st. The
				  actuarial opinion and memorandum must be in form and substance satisfactory to
				  the superintendent.
(b) The
				  actuarial opinion shall state that, after taking into account any risk charge
				  payable from the separate account assets and the amount of any reserve
				  liability of the general account with respect to the asset maintenance
				  requirement, the account assets make good and sufficient provision for contract
				  liabilities. The opinion shall be accompanied by a certificate of an officer of
				  the company responsible for the daily monitoring of compliance with the asset
				  maintenance and reserve requirements for such separate accounts, describing the
				  extent to and manner in which during the preceding year:
(1) actual benefit payments conformed to the
				  benefit payments estimated to be made as described in the plan of
				  operations;
(2) the level of risk
				  charges, if any, retained in the general account was appropriate in view of
				  such factors as the nature of the guaranteed contract liabilities and losses
				  experienced in connection with account contracts; and disclosing the data
				  required to be reported in accordance with section
				  97.5(m)(1) 
				  of this Part;
(3) after taking into
				  account any reserve liability of the general account with respect to the asset
				  maintenance requirement, the amount of the account assets satisfied the asset
				  maintenance requirement;
(4) the
				  determination of the market-value of the separate account assets conformed to
				  the valuation procedures described in the plan of operations, including (but
				  not limited to), a statement of the procedures and sources of information used
				  during such year;
(5) the
				  fixed-income asset portfolio(s) conformed to, and justified, the rates used to
				  discount contract liabilities for valuation pursuant to section
				  97.5(k) 
				  of this Part;
(6) if the amount of
				  the asset maintenance requirement depended on the separate account assets, or a
				  subportfolio thereof, being duration matched, the actual experience of the
				  separate account assets or such subportfolio thereof and actual benefit
				  payments conformed to the assumptions made in the plan of operations for
				  determining the duration of such assets and the duration of guaranteed contract
				  liabilities (or the guaranteed contract liabilities funded by the
				  subportfolio);
(7) if the amount of
				  the asset maintenance requirement depended on the separate account assets, or a
				  subportfolio thereof, being cash-flow matched, the cash inflows from the
				  separate account assets or such subportfolio thereof matched the cash outflows
				  to meet guaranteed contract liabilities (or the guaranteed contract liabilities
				  funded by the subportfolio);
(8)
				  any rate or rates used pursuant to section
				  97.5(k) 
				  of this Part to discount guaranteed contract liabilities and other items
				  applicable to the separate account were modified from the rate or rates
				  described in the plan of operations filed pursuant to section
				  97.4(b) 
				  of this Part; and
(9) any assets
				  were transferred to or from the insurance company's general account, or any
				  amounts were paid to the insurance company by any contractholder to support the
				  insurance company's guarantee.