New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter B - Life Insurers › Part 96 - Surplus Management Account › Section 96.9 - Accounting requirements

Current through Register Vol. 46, No. 28, July 10, 2024
(a) At the
				  end of each calendar year, each insurer that has established a surplus
				  management account but does not report the account as a separate line of
				  business on the insurer's annual statement shall file a report with the
				  superintendent at the same time as it files its annual statement, consisting of
				  the "Analysis of Operations by Lines of Business" page, as given in the annual
				  statement, but modified so as to incorporate a column for the surplus
				  management account "line".
(b) Each
				  insurer that has established a surplus management account shall also maintain a
				  notional balance by line of business of the portion of the surplus management
				  account attributable to each line of business. Such notional balance shall take
				  into account allocations and charges to the surplus management account, as well
				  as such line's allocable share of the financial experience of the surplus
				  management account. Such notional balance shall also reflect any difference
				  between the book value and market value of an asset at the time of transfer of
				  such asset to or from the surplus management account.
(c) Each insurer that has established a
				  surplus management account shall also maintain adequate records to show that
				  the surplus management account was maintained in accordance with the plan
				  (including amendments thereto) approved by the superintendent. Specifically, at
				  the end of each calendar year, the insurer shall prepare a record, and file a
				  report at the same time as it files its annual statement, of the income and
				  expenses accumulated in, or allocated to, the surplus management account for
				  the year just ended, including, but not limited to, the following information,
				  all as specified under the approved plan:
(1)
				  the opening balance of the account at the beginning of such year;
(2) credits to the account during such year
				  arising from:
(i) investment income (net of
				  investment expenses) allocated to the surplus management account;
(ii) capital gains (net of capital losses) on
				  such assets;
(iii) funds allocated
				  to the account;
(iv) any decrease
				  in the liabilities of the account; and
(v) any other credits specified under the
				  plan;
(3) charges to the
				  account during such year arising from:
(i)
				  withdrawals from the account;
(ii)
				  Federal income taxes and other expenses;
(iii) any increase in the liabilities of the
				  account; and
(iv) any other charges
				  specified under the plan; and
(4) the closing balance of the surplus
				  management account at the end of such year.
The records required by subdivision (c) of this section
					 shall be maintained in a manner as to be readily accessible for examination,
					 and shall bear a date and shall identify the person(s) responsible for the
					 preparation thereof.