New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter III - Policy and Certificate Provisions › Subchapter A - Life, Accident and Health Insurance › Part 43 - Individual Life Insurance Market-value Adjustment › Section 43.8 - Mandatory provisions for policies containing market-value adjustments

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The policy
				  cover page shall contain a prominent statement that the policy contains a
				  market-value adjustment formula, and that the operation of the formula may
				  result in both upward and downward adjustments in cash surrender benefits and
				  policy loan value. Points in time when cash surrender benefits are available
				  without the application of the market-value adjustment formula shall also be
				  described on the cover page.
(b)
				  The policy shall contain a description of the market-value adjustment formula,
				  including:
(1) the provisions of the formula
				  and a description of each of the elements used in the formula, along with an
				  identification of any index used in the formula and the source or publication
				  where the data used in the formula can be found;
(2) if an index of publicly traded
				  obligations is used in the formula, a statement that in the event that this
				  index is no longer available, a suitable replacement index, subject to approval
				  of the superintendent, would then be utilized;
(3) if the new guarantee rate is used in the
				  formula, a statement of the procedure to determine the rate to be used in the
				  event that the new guarantee rate cannot be determined from the company's
				  policies then being offered (or then in-force), and a statement of the
				  procedure to determine the adjustment in the event that the company no longer
				  issues guaranteed rate policies (see section
				  43.3[d][1][ii] 
				  of this Part);
(4) a statement of
				  the frequency with which market-value adjustments will be calculated, including
				  the dates to be used in identifying the interest factors;
(5) a statement of the points in time when
				  cash surrender benefits are available without the application of any
				  market-value adjustment formula, and for how long they are available on an
				  unadjusted basis;
(6) a statement
				  that a notice will be mailed at least 15 but not more than 45 days prior to the
				  beginning of each of the 30-day periods referred to in section
				  43.3(d)(1)(iii)
				  and (2)  of this Part and containing at least
				  the information specified therein (if the periods coincide, a combined notice
				  will suffice);
(7) in case of
				  flexible premium contracts, a statement as to any separate treatment of
				  premiums with respect to guaranteed rates, specified time intervals and
				  guaranteed benefit dates; and
(8) a
				  description of how death benefits may be affected by market-value adjustment of
				  policy loan values and, where death benefits are based upon the policy value,
				  by market-value adjustments of policy values. Unless otherwise specifically
				  permitted by law, when the death benefit is a function of the policy value,
				  such value used in the death benefit formulae, shall not be less than the
				  policy value before applying any market-value adjustment formulae.