New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter B - Life Insurers › Part 98 - Valuation Of Life Insurance Reserves › Section 98.3 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
As used in this Part, the following terms shall have the
					 following meanings:
(a) Basic reserves
				  means reserves calculated in accordance with the principles of section 4217  of the Insurance Law, as interpreted
				  by this Part.
(b) Commissioners
				  reserve valuation method means the method defined in section 4217 (c)(6)  of the
				  Insurance Law or, in the case of policies subject to section
				  98.6 
				  of this Part, as set forth in section
				  98.6 
				  of this Part, based on section 4217 (c)(6)(C)  of the
				  Insurance Law.
(c) Contract
				  segmentation method shall have the meaning set forth in section
				  98.5 
				  of this Part.
(d) Deficiency
				  reserves means the excess of minimum reserves calculated in accordance with the
				  principles of section 4218  of the Insurance Law, as interpreted
				  by this Part, over basic reserves.
(e) Gross premium means the premium for life
				  insurance and endowment benefits, and does not include the premium for policy
				  riders such as accidental death benefits.
(f) Guaranteed gross premiums means the
				  premiums under a policy of life insurance that are guaranteed and determined at
				  issue.
(g) Indeterminate premium
				  policy means a life insurance policy other than a universal life insurance
				  policy, whether participating or nonparticipating, which provides for future
				  premium determination, the amounts of which are to be determined by the
				  insurance company based on then estimates of future experience, and which
				  provides a schedule of guaranteed gross premiums and a schedule of current
				  gross premiums. Unless otherwise stated, for the purpose of applying this Part,
				  the guaranteed gross premiums shall be considered the gross premiums.
(h) Initial current gross premium scale for
				  an indeterminate premium policy means the schedule of gross premiums, based on
				  current assumptions at time of policy issue, that would be payable if there
				  were no subsequent prospective readjustments to the rate of premiums.
(i) Insurer means a life insurance company,
				  fraternal benefit society or an accredited reinsurer that reinsures life
				  insurance, whether within or outside the State, or writes life insurance
				  outside the State.
(j) Maximum
				  valuation interest rates means the interest rates, defined in section 4217 (c)(4)  of the
				  Insurance Law, allowed as the maximum permissible rates for the valuation of
				  life insurance policies. The guarantee duration is the maximum number of years
				  the life insurance can remain in force on a basis guaranteed in the policy or
				  under options to convert to plans of life insurance with premium rates or
				  nonforfeiture values or both which are guaranteed in the original
				  policy.
(k) Minimum mortality
				  standards means the standards prescribed in section 4217 (c)(2)(A)  of the
				  Insurance Law and in regulations, including this Part, promulgated pursuant to
				  such section.
(l) Policy means an
				  individual life insurance policy or a group life insurance
				  certificate.
(m)
Segmented
				  method for varying premium term life insurance
means the standards
				  prescribed in section
				  98.6(a)(7) 
				  of this Part and applying to policies with varying premiums with an initial
				  level premium rate guaranteed for up to 30 years ending at or before age 80,
				  followed by increasing guaranteed premiums thereafter.
(n)
Segmented reserves
shall
				  have the meaning set forth in section
				  98.6 
				  of this Part.
(o)
Superintendent
means the Superintendent of Financial Services
				  of the State of New York.
(p)
Unitary reserves
means the present value of all future
				  guaranteed life insurance and endowment benefits to the mandatory expiry date
				  of the policy less the present value of all future modified net premiums to
				  such date, where:
(1) the modified net
				  premiums of a policy shall be a uniform percentage of the respective guaranteed
				  gross premium whereby the present value, at the date of issue of the policy, of
				  the modified net premiums shall be equal to the sum of the then present value
				  of guaranteed life insurance and endowment benefits provided for by the policy
				  and the excess of subparagraph (i) over (ii) of this paragraph, as follows:
(i) a net level premium equal to the present
				  value, at the date of issue, of such benefits provided for after the first
				  policy year, divided by the present value, at the date of issue, of the greater
				  of:
(a) an annuity of one per year payable on
				  the first and each subsequent anniversary on which a premium falls due;
				  or
(b) an annuity of the guaranteed
				  gross premium payable on the first and subsequent anniversary, divided by the
				  guaranteed gross premium payable at issue; provided, however, that such net
				  level annual premium shall not exceed the net level annual premium on the 19
				  year premium whole life plan insurance of the same amount at an age one year
				  higher than the age at issue of the policy;