N.Y. Comp. Codes R. & Regs. Tit. 11 §§ 50-2.3

Current through Register Vol. 46, No. 51, December 18, 2024

Section 50-2.3 - Definitions

(a) Wherever used in this Subpart, the following terms shall have the respective meanings hereinafter set forth or indicated, unless the context otherwise requires:

(1)Insurer means an authorized life insurance company, United States branch of an alien insurance company entered through this state, and authorized fraternal benefit society, unless otherwise provided in this Subpart.

(2)Fixed benefits means benefits in which the amounts payable or credited are not a result of direct participation in the actual investment performance of the separate account and which guarantee that there will be no loss of principal due to investment performance.

(3)Guaranteed index benefits means fixed benefits that credit interest as determined by a formula based on an external index, such as the Standard & Poor's 500 Composite Stock Price Index.

(4)Non-guaranteed index benefits means benefits in which the value increases or decreases as determined by a formula based on an external index, such as the Standard & Poor's 500 Composite Stock Price Index, and allows for the loss of principal as a result of performance of the formula.

(5)Separate account or separate accounts mean an account or accounts established pursuant to Insurance Law section 4240, as amended or established pursuant to the laws and regulations of the insurer's domiciliary state.

(6)Separate account contract means any annuity contract or certificate or funding agreement that provides that the insurer shall allocate the amounts paid to the insurer, in whole or in part, to one or more separate accounts, whether amounts under the contract are credited or are payable in fixed or variable amounts or both.

(7)Variable benefits means benefits for which:

(i) amounts credited are a result of direct participation in the actual investment performance of the separate account;

(ii) amounts credited are a result of direct participation in the actual investment performance of the separate account, subject to guaranteed minimum benefits; or

(iii) deferred or immediate annuity payments, after the payments have commenced, reflect direct participation in the actual investment performance of the separate account regardless of whether the payments are subject to a minimum guarantee.

(8)Accumulated value means:

(i) for a unitized separate account, the number of accumulation units credited to a contract holder or to a certificate holder, as the case may be, multiplied by the value of an accumulation unit, or the value of a contract holder's or certificate holder's account determined by any other method consistent with Insurance Law section 4240(a)(1);

(ii) for a non-unitized separate account providing variable benefits, any method consistent with Insurance Law section 4240(a)(1);

(iii) for a non-unitized separate account that provides fixed benefits other than index-linked benefits, the actual accumulation amount determined in accordance with Insurance Law section 4223(c)(2) for contracts and certificates that would be subject to Insurance Law section 4223 if issued from the general account and the accumulation fund, as defined in Part 40 of this Title (Insurance Regulation 139) for contracts and certificates that would not be subject to Insurance Law section 4223 if issued from the general account;

(iv) for a non-unitized separate account that provides guaranteed index benefits, the greater of the minimum accumulation value and the equity index value determined in accordance with Insurance Law section 4223(c)(4); or

(v) for a non-unitized separate account that provides non-guaranteed index benefits, the non-guaranteed index value determined pursuant to subdivision (d) of section 50-2.9 of this Subpart.

(9)Investment return means the investment income plus capital gains less capital losses, whether realized or unrealized, on the assets of the separate account, less taxes incurred thereon, adjusted for any increase or decrease in reserves for potential taxes.

(10)Step credit means the crediting of a predetermined specified amount in the event of any flat or positive performance of an index.

N.Y. Comp. Codes R. & Regs. Tit. 11 §§ 50-2.3

Adopted New York State Register August 31, 2022/Volume XLIV, Issue 35, eff. 8/31/2022