reglab/statecodes huggingface dataset:
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter III - Policy and Certificate Provisions › Subchapter A - Life, Accident and Health Insurance › Part 42 - Term Life Issuance And Renewal Restrictions; Nonforfeiture Values For Certain Life Insurance Policies › Subpart 42-2 - Term Life Issuance And Renewal Restrictions; Nonforfeiture Values For Certain Life Policies Issued On Or After January 1, 2008 › Section 42-2.5 - Joint life mortality

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
					 Minimum nonforfeiture values are based on the exact joint life mortality using
					 mortality tables that would be required for each single life and assuming that
					 the mortality of the joint lives are independent.
(b) Minimum nonforfeiture values and policy
					 disclosures may be based on the use of joint life mortality throughout the
					 lifetime of the policy. Minimum nonforfeiture values and policy disclosures on
					 each possible status of the lives under the terms of the policy is also
					 acceptable if the disclosures and minimum value requirements of the Insurance
					 Law are met for each possible status. For example, if the status of a second to
					 die policy is based on a single life status after the first death, then the
					 required disclosures under section 4221 (a)(5)  of the
					 Insurance Law must be shown in the policy for each possible status of joint or
					 single life.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter III - Policy and Certificate Provisions › Subchapter A - Life, Accident and Health Insurance › Part 42 - Term Life Issuance And Renewal Restrictions; Nonforfeiture Values For Certain Life Insurance Policies › Subpart 42-2 - Term Life Issuance And Renewal Restrictions; Nonforfeiture Values For Certain Life Policies Issued On Or After January 1, 2008 › Section 42-2.6 - Minimum policy anniversary nonforfeiture value requirements for indeterminate premium policies

Current through Register Vol. 46, No. 28, July 10, 2024
(a) This
					 section shall not apply to one-year term life insurance coverage funded by
					 dividends.
(b) The minimum
					 nonforfeiture value at the end of any policy year is the greater of:
(1) the minimum nonforfeiture value required
					 for that year based on the requirements of section 4221  of the Insurance Law and the
					 provisions of this Subpart based on the guaranteed gross premium scale;
					 and
(2) the minimum nonforfeiture
					 value required for that year based on the requirements of section 4221  of the Insurance Law and the
					 provisions of this Subpart based on the initial current premium
					 scale.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter III - Policy and Certificate Provisions › Subchapter A - Life, Accident and Health Insurance › Part 42 - Term Life Issuance And Renewal Restrictions; Nonforfeiture Values For Certain Life Insurance Policies › Subpart 42-2 - Term Life Issuance And Renewal Restrictions; Nonforfeiture Values For Certain Life Policies Issued On Or After January 1, 2008 › Section 42-2.7 - Full description of nonforfeiture method and statement of mortality table

Current through Register Vol. 46, No. 28, July 10, 2024
(a) A statement
					 of the mortality table required by section 4221 (a)(5) or section 4221 (a)(6)  of the
					 Insurance Law shall specify the mortality table used, including smoking status
					 variations, gender variations and method of determining ages.
(b) A statement of the method as required by
					 section 4221 (a)(6)  of the
					 Insurance Law shall include whether curtate, semi-continuous or continuous
					 functions are used.
(c) A statement
					 of the method to be used in calculating the cash surrender value and paid-up
					 nonforfeiture benefit available under the policy on any policy anniversary
					 beyond the last anniversary for which such values and benefits are
					 consecutively shown in the policy. Acceptable statements of the nonforfeiture
					 method shall include, but not be limited to, the following:
(1) the minimum nonforfeiture
					 method;
(2) the net level premium
					 method; and
(3) the present value
					 of guaranteed benefits provided for by the policy less the present value of the
					 nonforfeiture factors for each year after the date of determination for which a
					 premium is due. If the statement includes the use of nonforfeiture factors, the
					 nonforfeiture factors needed for calculation of the nonforfeiture values must
					 appear in the policy.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter III - Policy and Certificate Provisions › Subchapter A - Life, Accident and Health Insurance › Part 42 - Term Life Issuance And Renewal Restrictions; Nonforfeiture Values For Certain Life Insurance Policies › Subpart 42-2 - Term Life Issuance And Renewal Restrictions; Nonforfeiture Values For Certain Life Policies Issued On Or After January 1, 2008 › Section 42-2.8 - Anniversary values when insurance benefits are not level between anniversaries

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
					 For the purposes of section 4221 (c)(1) (k)(2) and (3)  of the Insurance Law, the
					 present value of the future guaranteed benefits payable between anniversaries
					 are discounted to the anniversary preceding their payment using an effective
					 rate of interest and assuming a uniform distribution of deaths or a constant
					 force of mortality. The nonforfeiture interest rate and mortality assumptions
					 for discounting are those required to demonstrate compliance with section 4221 (c)(1)  of the
					 Insurance Law.
(b) Alternatively,
					 at the option of the life insurance company or fraternal benefit society, for
					 the purposes of section 4221 (c)(1) (k)(2) and (3)  of the Insurance Law, the
					 present value of the future guaranteed death benefits may be determined by
					 substituting, for the death benefits payable during any year, a time and amount
					 weighted average of the death benefits provided as payable at the end of the
					 year. As an example, for a death benefit of $100,000 on an anniversary that
					 increases after 8 months to $160,000, a death benefit of $120,000 payable at
					 the end of the year may be substituted.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter III - Policy and Certificate Provisions › Subchapter A - Life, Accident and Health Insurance › Part 42 - Term Life Issuance And Renewal Restrictions; Nonforfeiture Values For Certain Life Insurance Policies › Subpart 42-2 - Term Life Issuance And Renewal Restrictions; Nonforfeiture Values For Certain Life Policies Issued On Or After January 1, 2008 › Section 42-2.9 - Nonforfeiture values at times other than on policy anniversaries

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
(1) Gross modal premiums means the premiums
					 specified in the policy for the policy year, excluding amounts payable as extra
					 premiums to cover impairments or special hazards and also excluding any uniform
					 annual contract charge or policy fee specified in the policy in a statement of
					 the method to be used in calculating the cash surrender values and paid-up
					 nonforfeiture benefits.
(2) Modal
					 adjusted nonforfeiture premiums for a policy year means the modal equivalent of
					 the annual adjusted nonforfeiture premium for that year as defined in section 4221  of the Insurance Law.
(3) Calculated value for a policy anniversary
					 means the present value, on the anniversary of the future guaranteed benefits
					 that are provided for by the policy, including any existing paid-up additions,
					 over the sum of the then present value of the adjusted premiums as defined in
					 section 4221  of the Insurance Law, corresponding to
					 the premium that would have fallen due on and after the anniversary. The
					 interest rate and mortality used for discounting shall be the same as required
					 to demonstrate compliance with section 4221 (c)(1)  of the
					 Insurance Law. The calculated value is not subject to a minimum value of
					 zero.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter III - Policy and Certificate Provisions › Subchapter A - Life, Accident and Health Insurance › Part 42 - Term Life Issuance And Renewal Restrictions; Nonforfeiture Values For Certain Life Insurance Policies › Subpart 42-2 - Term Life Issuance And Renewal Restrictions; Nonforfeiture Values For Certain Life Policies Issued On Or After January 1, 2008 › Section 42-2.10 - Supplemental yearly renewable term insurance

Current through Register Vol. 46, No. 28, July 10, 2024
In the case of a level death benefit term policy where
						uniform premiums are payable each year for an initial period followed by a
						yearly renewable term premium paying period, at the option of the insurer the
						yearly renewable term portion may be considered supplemental insurance for
						purposes of section 4221 (c)(2)  of the
						Insurance Law, provided that the premiums increase each year and no
						nonforfeiture values would be required by section 4221  of the Insurance Law or this Subpart
						for the yearly renewable term portion if issued on a stand-alone
						basis.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter III - Policy and Certificate Provisions › Subchapter A - Life, Accident and Health Insurance › Part 42 - Term Life Issuance And Renewal Restrictions; Nonforfeiture Values For Certain Life Insurance Policies › Subpart 42-2 - Term Life Issuance And Renewal Restrictions; Nonforfeiture Values For Certain Life Policies Issued On Or After January 1, 2008 › Section 42-2.12 - Term policy maximum age

Current through Register Vol. 46, No. 28, July 10, 2024
No policy of term life insurance shall be issued, renewed
						or continued beyond the last age in the mortality table for which minimum
						nonforfeiture values for whole life insurance are determined at the time of the
						term policy's issue. For a joint life first to die policy, this limitation is
						applied to the oldest age. For a joint life last to die policy this limitation
						is applied to the youngest age.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter III - Policy and Certificate Provisions › Subchapter A - Life, Accident and Health Insurance › Part 42 - Term Life Issuance And Renewal Restrictions; Nonforfeiture Values For Certain Life Insurance Policies › Subpart 42-2 - Term Life Issuance And Renewal Restrictions; Nonforfeiture Values For Certain Life Policies Issued On Or After January 1, 2008 › Section 42-2.13 - Death proceeds not available in a lump sum

Current through Register Vol. 46, No. 28, July 10, 2024
For determining the adjusted premiums in section 4221 (k)  of the Insurance
						Law, the present value of benefits payable only in installments shall be
						calculated using the applicable nonforfeiture interest rate and mortality table
						in section 4221 (k)  of the Insurance
						Law.
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 43.1 - Purpose

Current through Register Vol. 46, No. 28, July 10, 2024
This Part governs:
(a) the use of market-value adjustment
				  formulae in determining cash surrender benefits and policy loan values under
				  individual policies or certificates of life insurance that provide for the
				  crediting of additional amounts pursuant to section 4232 (b) or
				  4518  of the Insurance Law;
(b) advertising and disclosure relating to
				  such market-value adjustments;
(c)
				  filing requirements for such policies and certificates;
(d) mandatory provisions to be contained in
				  such policies and certificates; and
(e) funding and reserve requirements for such
				  policies and certificates.
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 43.3 - Market-value adjustment formulae

Current through Register Vol. 46, No. 28, July 10, 2024
(a) General principles.
(1) Except on a guaranteed benefit date, a
				  policy may provide for the determination of cash surrender benefits in
				  accordance with a market-value adjustment formula, by applying the formula to
				  the nonborrowed portion of the policy value before reduction for any surrender
				  charge.
(2) The same market-value
				  adjustment formula shall be applied during periods when its application would
				  result in an increase in cash surrender value as is applied during periods when
				  its application would result in a decrease in cash surrender value; unless the
				  company can demonstrate, to the satisfaction of the superintendent, that equity
				  to terminating and continuing policyholders and to the company is better served
				  by use of a different formula in such circumstances.
(3) If a policy limits the amount by which
				  cash surrender benefits may be increased by application of a market-value
				  adjustment formula to a specific percentage of the policy value, the same or
				  lower percentage limit shall apply during periods when the application of the
				  market-value adjustment formula results in a decrease in cash surrender
				  benefits (see example 2 in section
				  43.9[a][1] 
				  of this Part), unless the company can demonstrate, to the satisfaction of the
				  superintendent, that equity to terminating and continuing policyholders and to
				  the company is better served by using a different percentage limit in such
				  circumstances.
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 43.5 - Advertising and disclosure with respect to market-value adjustment and formula

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Each statement
				  of preliminary information furnished to an applicant pursuant to section 3209  of the Insurance Law shall contain a
				  description of the market-value adjustment formula contained in the policy. The
				  description of the market-value adjustment formula shall include:
(1) the provisions of the formula, a
				  description of each of the elements of the formula, including if the formula is
				  based on an index of publicly traded obligations, the nature of the index and
				  the manner in which it is used in the formula, and identification of the source
				  or publication where any data used in the formula may be found;
(2) a statement of the frequency with which
				  adjustments made in accordance with the formula will be made;
(3) a statement of the points in time when
				  cash surrender benefits are available without application of the formula, and
				  for how long they are available on an unadjusted basis;
(4) a prominent statement that the
				  application of the formula may result in both upward and downward adjustments
				  of cash surrender benefits and loan values;
(5) numerical examples of such upward and
				  downward adjustments;
(6) a
				  prominent statement as to any surrender charges and the periods during which
				  the charges may be made;
(7) in the
				  case of flexible premium policies, a statement as to any separate treatment of
				  different premiums as to guaranteed rates, market-value adjustments, surrender
				  charges, specified time intervals and guaranteed benefit dates; and
(8) a statement that loan repayments will be
				  treated as a current premium remittance for interest crediting and subsequent
				  market-value adjustment purposes.
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 43.6 - Availability of unadjusted cash surrender benefits

Current through Register Vol. 46, No. 28, July 10, 2024
In policies providing guaranteed rates, an unadjusted cash
					 surrender benefit must be available on each guaranteed benefit date and at the
					 maturity of the policy. The specified time interval for any guaranteed rate
					 shall not exceed 10 years. For example, a contract providing a guaranteed rate
					 for five years must provide an unadjusted cash surrender benefit at the end of
					 the five years.
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 43.7 - Memorandum in support of policy form filing

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Each policy form containing a
				  market-value adjustment formula that is filed with the superintendent pursuant
				  to section 3201 (c)(10)  of the
				  Insurance Law shall be accompanied by a memorandum, in form and substance
				  satisfactory to the superintendent:
(1)
				  describing the market-value adjustment formula provided in the
				  policy;
(2) containing, or
				  accompanied by, an actuarial opinion that the market-value adjustment formula
				  provides reasonable equity to terminating and continuing policyholders and to
				  the company; and
(3) demonstrating
				  that the unadjusted cash surrender values under the policy comply with the
				  nonforfeiture provisions of section 4221 (n)(1)  of the
				  Insurance Law.
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 43.9 - Examples

Current through Register Vol. 46, No. 28, July 10, 2024
This section contains examples of the application of
					 market-value adjustment formulae that meet the requirements of this
					 Part.
MARKET VALUE ADJUSTMENT EXAMPLES
Variables
xPV t =
					 Unborrowed portion of the policy value at time t derived from contribution made
					 at time x
xSC t =
					 Surrender Charge applicable at time t derived from contribution made at time
					 x
CSBt = Cash Surrender Benefit at
					 time t
LAt = Value of Loan Account at time
					 t
It = Amount of Indebtedness at time
					 t
Lt = Loan requested at time t
(a)
Single premium policies.
(1) Internal index.
Example 1:
Five-year guaranteed interest rate policy.
Assume this policy was issued three years ago with a
					 five-year guaranteed interest rate of 12%. Currently, two-year single premium
					 policies are issued with a two-year guaranteed interest rate of 10%.
The current cash surrender benefit is determined to
					 be:
(i) CSB3 =
				  0PV3 x 
				  1.122/1.102 +
				  LA3 I3
												0SC3
Alternatively:
(ii) CSB3 =
				  0PV 3[1 (.10 .12) x 2] +
				  LA3 I3
												0SC3
Example 2:
Five-year guaranteed interest rate policy with cap.
Assume this policy was issued three years ago with a
					 guaranteed interest rate of 12% in years 1-5, and a minimum interest guarantee
					 of 5% in years 6-10. There is a 5% cap on market value adjustments. Currently,
					 two-year guaranteed interest rates of 8% are being offered on similar
					 policies.
The current cash surrender benefit is determined to
					 be:
CSB3 =
					 0PV3 x1.12
						2/1.082 cap of 5% +
					 LA3 I3
													0SC3
= 0PV3 x 1.05
					 + LA 3 I3
													0SC3
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 43.11 - Severability

Current through Register Vol. 46, No. 28, July 10, 2024
If any provision of this Part or the application thereof to
					 any person or circumstance is adjudged invalid by a court of competent
					 jurisdiction, such judgment shall not affect or impair the validity of the
					 other provisions of this Part or the applications thereof to other persons and
					 circumstances.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter III - Policy and Certificate Provisions › Subchapter A - Life, Accident and Health Insurance › Part 44 - Individual Deferred Annuities, Market-value Adjustments Withdrawal Charges, Availability Of Cash Values › Section 44.0 - Purpose

Current through Register Vol. 46, No. 28, July 10, 2024
This regulation governs the use of market-value adjustment
					 formulae in determining cash surrender benefits, the use of withdrawal charges
					 and the availability of cash surrender values under individual deferred
					 annuities subject to section 4223  of the Insurance Law, and the funding
					 and reserves for such annuities with market-value
					 adjustments.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter III - Policy and Certificate Provisions › Subchapter A - Life, Accident and Health Insurance › Part 44 - Individual Deferred Annuities, Market-value Adjustments Withdrawal Charges, Availability Of Cash Values › Section 44.1 - Legislative background

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
				  Chapter 864 of the Laws of 1985 amended section 4223  of the Insurance Law, among other
				  things, to authorize a new form of individual deferred annuity contract and
				  group annuity certificate that guarantees cash surrender benefits at maturity
				  and other specified times (not less frequently than once every 10 years) but
				  otherwise provides for the determination of such benefits based on a market
				  value adjustment formula. The chapter defines market-value adjustment formula
				  to mean a formula which is described in the contract for increasing and
				  decreasing the actual accumulation amount under the contract in order to
				  determine cash surrender benefits and which takes into account (1) changes in
				  interest rates on publicly traded debt obligations or other investments or in
				  interest rates provided in, or declared pursuant to, contracts of the same
				  class as the contract being surrendered; and (2) the length of time between the
				  date on which the contract is surrendered and the next date on which the
				  contract would have provided cash surrender benefits determined without the use
				  of any market-value adjustment formula. The chapter authorized the
				  superintendent to promulgate reasonable regulations to define permissible forms
				  of market-value adjustment formulae.
(b) The chapter also modified the withdrawal
				  charges and required such charges be reduced to zero after several years in any
				  contract having cash values subject to market-value adjustment.
(c) The chapter also permitted contracts with
				  cash values to limit their availability to once every 10 years. This was
				  intended to permit insurers to safely invest in longer-term assets and offer
				  higher interest guarantees to contractholders.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter III - Policy and Certificate Provisions › Subchapter A - Life, Accident and Health Insurance › Part 44 - Individual Deferred Annuities, Market-value Adjustments Withdrawal Charges, Availability Of Cash Values › Section 44.2 - Scope of regulation

Current through Register Vol. 46, No. 28, July 10, 2024
This Part governs any market-value adjustment formula that
					 is applied to the actual accumulation amount under a contract or a group
					 annuity certificate subject to section 4223  of the Insurance Law before taking
					 into account any withdrawal charge in accordance with the provisions of section
					 4223. It also applies to any market-value or other adjustment of the actual
					 accumulation amount taken as a form of withdrawal charge and limited to an
					 amount not exceeding the maximum withdrawal charge permitted by section
					 4223.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter III - Policy and Certificate Provisions › Subchapter A - Life, Accident and Health Insurance › Part 44 - Individual Deferred Annuities, Market-value Adjustments Withdrawal Charges, Availability Of Cash Values › Section 44.3 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
As used in this Part, the following terms have the
					 following meanings:
(a) Actual
				  accumulation amount, with respect to any contract at any time at or prior to
				  the commencement of any annuity payment is:
(1) the net considerations credited to such
				  contract; minus
(2) premium taxes
				  and premium charges; plus
(3)
				  additional amounts, including interest (which shall not be less in any year
				  than three percent of the sum of the actual accumulation amount and the amount
				  of any indebtedness to the company on the contract) and dividends credited by
				  the company to the contract; minus
(4) administrative charges (which shall not
				  exceed $30 per year); minus
(5) the
				  sum of (i) the amount appropriate according to the terms of the contract to
				  reflect any prior withdrawals from or partial surrenders of the contract; and
				  (ii) the amount of any indebtedness to the company on the contract, including
				  interest due and accrued.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter III - Policy and Certificate Provisions › Subchapter A - Life, Accident and Health Insurance › Part 44 - Individual Deferred Annuities, Market-value Adjustments Withdrawal Charges, Availability Of Cash Values › Section 44.4 - Withdrawal charge formula

Current through Register Vol. 46, No. 28, July 10, 2024
(a) A
				  withdrawal charge, conforming to section
				  44.3(w) 
				  of this Part, may be assessed as a flat dollar charge, as a fixed percentage of
				  the premium received or of the accumulation value, or as a variable amount
				  subject to a market-value adjustment formula which may result in charges but
				  need not result in credits provided the total withdrawal charge does not exceed
				  the maximum in section
				  44.3(w) 
				  of this Part.
(b) A withdrawal
				  charge, conforming to section
				  44.3(w)(1) 
				  of this Part:
(1) may be assessed at all times
				  against the accumulation value, including at guaranteed benefit dates and at
				  the annuity commencement date;
(2)
				  may be waived at the option of the company, in whole or in part, at specified
				  times such as at guaranteed benefit dates and then reimposed in part or in full
				  for a subsequent time such as a new guarantee rate for a new specified time
				  interval; and
(3) may be waived at
				  the option of the company, for contracts providing guaranteed rates for a short
				  specified time interval such as one year, if the company fails to declare a new
				  rate for a new specified time interval, at least equal to a specified rate
				  which rate shall be at least 0.5 percent lower than the initially declared
				  rate.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter III - Policy and Certificate Provisions › Subchapter A - Life, Accident and Health Insurance › Part 44 - Individual Deferred Annuities, Market-value Adjustments Withdrawal Charges, Availability Of Cash Values › Section 44.5 - Market-value adjustment formulae

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
(1)
				  Except on a guaranteed benefit date, a contract may provide for the
				  determination of cash surrender benefits in accordance with a market-value
				  adjustment formula, by applying the formula to the actual accumulation amount
				  before deducting any withdrawal charge.
(2) The same market-value adjustment formula
				  is to be applied during periods when its application would result in an
				  increase in cash surrender benefits as is applied during periods when its
				  application would result in a decrease in cash surrender benefits, unless the
				  company can demonstrate, to the satisfaction of the superintendent, that equity
				  to terminating and continuing contractholders and to the company is better
				  served by use of a different formula in such circumstances.
(3) If a contract limits the amount by which
				  cash surrender benefits may be increased by application of a market-value
				  adjustment formula to a specific percentage of the actual accumulation amount
				  before deduction of any withdrawal charge, the same percentage limit must apply
				  during periods when the application of the market-value adjustment formula
				  results in a decrease in cash surrender benefits, unless the company can
				  demonstrate, to the satisfaction of the superintendent, that equity to
				  terminating and continuing contractholders and to the company is better served
				  by using a different percentage limit in such circumstances. (See example 2 in
				  section
				  44.10[a][1] 
				  of this Part.)
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter III - Policy and Certificate Provisions › Subchapter A - Life, Accident and Health Insurance › Part 44 - Individual Deferred Annuities, Market-value Adjustments Withdrawal Charges, Availability Of Cash Values › Section 44.6 - Availability of cash surrender values

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Cash surrender values shall be available
				  under all contracts subject to section 4223  of the Insurance Law, except for the
				  following:
(1) contracts issued by any life
				  insurance or annuity company organized and operated, without profit to any
				  private shareholder or individual, exclusively for the purpose of aiding
				  educational or scientific institutions which are also organized and operated
				  without profit, and which are issued only to or for the benefit of such
				  institutions or individuals engaged in the service of such
				  institutions;
(2) contracts issued
				  to fund any benefits under a pension planwithin the meaning of the Employee
				  Retirement Income Security Act of 1974;
(3) contracts issued to employers to fund
				  deferred compensation arrangements;
(4) contracts issued to fund lotteries or
				  other programs of states, municipalities, or agencies or instrumentalities
				  thereof;
(5) structured settlements
				  with payment deferred in accordance with a settlement of a lawsuit involving
				  claims such as liability claims or medical malpractice claims; and
(6) such other contracts as specifically
				  approved by the superintendent upon a demonstration that cash surrender
				  benefits are not appropriate.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter III - Policy and Certificate Provisions › Subchapter A - Life, Accident and Health Insurance › Part 44 - Individual Deferred Annuities, Market-value Adjustments Withdrawal Charges, Availability Of Cash Values › Section 44.7 - Memorandum in support of contract form filing

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Each contract form containing a
				  market-value adjustment formula that is filed with the superintendent pursuant
				  to section 3201 (c)(10)  of the
				  Insurance Law shall be accompanied by a memorandum, in form and substance
				  satisfactory to the superintendent:
(1)
				  describing the market-value adjustment formula provided in the
				  contracts;
(2) containing, or
				  accompanied by, an actuarial opinion that the market-value adjustment formula
				  provides reasonable equity to terminating and continuing contractholders and to
				  the company; and
(3) demonstrating
				  the contract's compliance with the nonforfeiture provisions of section 4223  of the Insurance Law.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter III - Policy and Certificate Provisions › Subchapter A - Life, Accident and Health Insurance › Part 44 - Individual Deferred Annuities, Market-value Adjustments Withdrawal Charges, Availability Of Cash Values › Section 44.8 - Advertising and disclosure

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Each
				  statement of preliminary information delivered to an applicant for a contract
				  pursuant to section 3209  of the Insurance Law must be
				  accompanied or preceded by a description of the market-value adjustment
				  formula, if any, contained in the contract, and by a description of the
				  withdrawal charge formula, if any, contained in the contract.
(1) The description of any market-value
				  adjustment formula should include:
(i) the
				  provisions of the formula, a description of each of the elements of the formula
				  and identification of the source or publication where any data used in the
				  formula may be found;
(ii) a
				  statement of the frequency with which adjustments made in accordance with the
				  formula will be made;
(iii) a
				  statement of the points in time when contract values are available without
				  application of the formula, and for how long they are available on an
				  unadjusted basis;
(iv) a prominent
				  statement that the application of the formula may result in both upward and
				  downward adjustments of cash surrender benefits;
(v) numerical examples of such upward and
				  downward adjustments;
(vi) a
				  prominent statement as to any limited withdrawal charges and the limitation as
				  to the years during which a charge may be made; and
(vii) in case of flexible premium contracts,
				  a statement as to any separate treatment of different premiums as to interest
				  rate guarantee, market-value adjustments, withdrawal charges, specified time
				  intervals, and guaranteed benefit dates.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter III - Policy and Certificate Provisions › Subchapter A - Life, Accident and Health Insurance › Part 44 - Individual Deferred Annuities, Market-value Adjustments Withdrawal Charges, Availability Of Cash Values › Section 44.9 - Policy provisions for contracts containing market-value adjustments

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The contract
				  cover page shall contain a prominent statement that the contract 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.
				  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 contract
				  shall contain a description of the market-value adjustment formula containing:
(1) the provisions of the formula and a
				  description of each of the elements used in the formula, along with an
				  identification of 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
				  contracts 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 contracts (see section
				  44.5[b][3][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
				  contract values 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
				  44.5(b)(3)(iii)
				  and (iv)  of this Part and containing at least
				  the information specified therein (if the periods coincide, a combined notice
				  will suffice); and
(7) in case of
				  flexible premium contracts, a statement as to any separate treatment of
				  premiums as to guaranteed rates, withdrawal charges, specified time intervals
				  and guaranteed benefit dates.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter III - Policy and Certificate Provisions › Subchapter A - Life, Accident and Health Insurance › Part 44 - Individual Deferred Annuities, Market-value Adjustments Withdrawal Charges, Availability Of Cash Values › Section 44.10 - Examples

Current through Register Vol. 46, No. 28, July 10, 2024
This section contains examples of the application of
					 market-value adjustment formulae that meet the requirements of this
					 regulation.
MARKET VALUE ADJUSTMENT EXAMPLES
Variables
xAt =
					 Actual Accumulation Amount at time t derived from contribution made at time
					 x
Wt = Withdrawal Charge Factor at
					 time t
CSBt = Cash Surrender Benefit at
					 time t
(a)
Single premium
				  contracts.
(1) Internal index.
Example 1:
Five-year guaranteed interest rate contract.
Assume a contract issued three years ago with a five-year
					 guaranteed interest rate of 12%. Currently, two-year single premium contracts
					 are issued with a two-year guaranteed interest rate of 10%.
The current cash surrender benefit is determined to
					 be:
(i) CSB3 =
				  (1 W3) 0A3 x 
				  1.122/1.102
Alternatively:
(ii) CSB3 = (1 W
				  3)(0A3)[1 (.10 .12) x 2]
Example 2:
Five-year guaranteed interest rate contract with
					 cap.
Assume a contract issued three years ago with a guaranteed
					 interest rate of 12% in years 1-5, and a minimum interest guarantee of 5% in
					 years 6-10. There is a 5% cap on market value adjustments. Currently, two-year
					 guaranteed interest rates of 8% are being offered on similar contracts.
The current cash surrender benefit is determined to
					 be:
CSB3 = (1
					 W3)0A3 x 
					 1.122/1.082
					 cap of 5%
= (1 W3)
					 0A3 * 1.05
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter III - Policy and Certificate Provisions › Subchapter A - Life, Accident and Health Insurance › Part 44 - Individual Deferred Annuities, Market-value Adjustments Withdrawal Charges, Availability Of Cash Values › Section 44.11 - Funding and reserves

Current through Register Vol. 46, No. 28, July 10, 2024
(a) A
				  company may fund its contracts providing for market-value adjustments in a
				  separate account holding assets valued at market and may value its reserve
				  liabilities for such contracts using a current interest rate determined in
				  accordance with this section. Alternatively, a company may fund such contracts
				  in its general account or in a separate account holding assets valued in
				  accordance with section 1414  of the Insurance Law, and in either
				  case value its reserve liabilities using an interest rate determined in
				  accordance with this section and section 4217  of the Insurance Law and regulations
				  promulgated by the superintendent.
(b) Market-value separate accounts.
(1) A company may fund its contracts in a
				  separate account holding assets valued at market only if all of the following
				  conditions are met:
(i) the company does not
				  invest in nor reinvest such assets in other than publicly traded obligations,
				  short-term debt and cash (and cash equivalents) unless at least 90 percent of
				  the market value of such assets consists of fixed income obligations and other
				  securities and cash (and cash equivalents), having a Macaulay duration within
				  one year of the Macaulay duration of the contract liabilities under at least
				  one of the two ways provided in paragraph (2) of this subdivision;
(ii) the company maintains at least 80
				  percent of the market value of the assets held in the separate account
				  consisting of fixed income obligations, short-term debt and cash (and cash
				  equivalents), having a Macaulay duration within one year of the Macaulay
				  duration of the contract liabilities under at least one of the two ways
				  provided in paragraph (2) of this subdivision;
(iii) the contracts provide for separate
				  account funding;
(iv) the company
				  obtains the superintendent's approval of its plan of operation for the separate
				  account;
(v) the company submits
				  annually to the superintendent, an opinion, in form and substance satisfactory
				  to the superintendent, of a qualified actuary meeting the requirements of Part
				  95 of this Title that, after taking into account any risk charge payable from
				  the assets of the separate account with respect to contract liabilities, the
				  separate account assets make good and sufficient provision for the company's
				  liabilities with respect thereto, such opinion to be accompanied by a
				  memorandum, also in form and substance satisfactory to the superintendent, of
				  the qualified actuary, describing the calculations made in support of such
				  opinion and the assumptions used in the calculations. The form of the opinion
				  and memorandum shall comply with Part 95 of this Title.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter III - Policy and Certificate Provisions › Subchapter A - Life, Accident and Health Insurance › Part 44 - Individual Deferred Annuities, Market-value Adjustments Withdrawal Charges, Availability Of Cash Values › Section 44.12 - Severability

Current through Register Vol. 46, No. 28, July 10, 2024
If any provision of this Part or the application thereof to
					 any person or circumstance is adjudged invalid by a court of competent
					 jurisdiction, such judgment shall not affect or impair the validity of the
					 other provisions of this Part or the application thereof to other persons and
					 circumstances.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter III - Policy and Certificate Provisions › Subchapter A - Life, Accident and Health Insurance › Part 45 - Applications For Life Insurance › Section 45.1 - Notice of war restrictions

Current through Register Vol. 46, No. 28, July 10, 2024
Pursuant to sections 301, 3203, and
					 4510  of the Insurance Law, all companies
					 writing policies subject to the provisions of section 3203 with respect to
					 policies issued for delivery in New York State, and all fraternal benefit
					 societies writing certificates subject to the provisions of section 4510 with
					 respect to certificates issued for delivery in New York State which contain war
					 restrictions, are instructed to insert in their application forms a notice that
					 war restrictions will be included in such policy or
					 certificate.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter III - Policy and Certificate Provisions › Subchapter A - Life, Accident and Health Insurance › Part 46 - Unemployment Lapse Protection Benefit For Life Insurance › Section 46.1 - Purpose

Current through Register Vol. 46, No. 28, July 10, 2024
This Part establishes minimum standards for benefit levels,
					 benefits eligibility and exclusion, and premium levels relating to additional
					 benefits authorized under section 1113 (a)(1)  of the
					 Insurance Law for unemployment lapse protection benefits for life insurance.
					 The unemployment lapse protection benefit includes waiver of premium benefits
					 and waiver of charge benefits. This Part also provides advertising and
					 disclosure requirements for unemployment lapse protection benefits for life
					 insurance.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter III - Policy and Certificate Provisions › Subchapter A - Life, Accident and Health Insurance › Part 46 - Unemployment Lapse Protection Benefit For Life Insurance › Section 46.2 - Applicability

Current through Register Vol. 46, No. 28, July 10, 2024
This Part applies to every individual life insurance policy
					 issued or delivered in this State, group life insurance policy issued or
					 delivered in this State, and group life insurance certificate deemed to have
					 been delivered in this State pursuant to section 3201 (b)(1)  of the
					 Insurance Law, that provides unemployment lapse protection
					 benefits.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter III - Policy and Certificate Provisions › Subchapter A - Life, Accident and Health Insurance › Part 46 - Unemployment Lapse Protection Benefit For Life Insurance › Section 46.3 - 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) Coverage delay
				  period means the amount of time from the effective date of coverage that
				  unemployment is not covered.
(b)
				  Employment means any service:
(1) for
				  remuneration or wages; or
(2) under
				  any contract of employment for hire, express or implied, written or oral;
				  including service as a commissioned salesperson, service outside of this State
				  including locations in a foreign country, agricultural labor, railroad service,
				  and maritime service. The policy definition of employment may allow for any of
				  the exclusions in section 511  of the
				  Labor Law, other than the exclusions included in the Labor Law to prevent
				  simultaneous payment of unemployment benefits from more than one governmental
				  source.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter III - Policy and Certificate Provisions › Subchapter A - Life, Accident and Health Insurance › Part 46 - Unemployment Lapse Protection Benefit For Life Insurance › Section 46.4 - Filing and approval of forms

Current through Register Vol. 46, No. 28, July 10, 2024
(a) No policy of life insurance, application,
				  conditional receipt, temporary insurance agreement, notice of proposed
				  insurance, or other form pertaining to, or providing a life insurance
				  unemployment lapse protection benefit shall be delivered or issued for delivery
				  in this State, unless the forms have been filed with and approved by the
				  superintendent.
(b) If the
				  unemployment lapse protection benefit is provided by rider or endorsement, the
				  insurer shall in writing identify all policy forms with which the rider or
				  endorsement is intended for use.