N.Y. Comp. Codes R. & Regs. tit. 11 § 97.1

Current through Register Vol. 46, No. 53, December 31, 2024

Section 97.1 - Purpose

(a) Chapter 864 of the Laws of 1985 amended section 4240 of the Insurance Law (relating to separate accounts) to add to the circumstances in which an insurance company may guarantee the value of assets allocated to a separate account, or any interest therein, or the investment results thereof. The amendment allows such a guarantee to be made if the insurance company submits annually to the superintendent an opinion and memorandum of a qualified actuary, in form and substance satisfactory to the superintendent, that, after taking into account any risk charge payable from the assets of the separate account with respect to such guarantee, the assets in the separate account make good and sufficient provision for the liabilities of the insurance company with respect thereto.

(b) Section 4240 of the Insurance Law was also amended to permit the insurance company to value the assets allocated to such a separate account at their market value, and section 4217 was amended to authorize the valuation of the benefits funded by the separate account on a consistent basis.

(c) The purpose of this Part is to prescribe:

(1) the terms and conditions under which life insurance companies may issue contracts (of the kind described in section 97.2[a] of this Part) that:

(i) are funded by separate accounts in which assets are valued at market; and

(ii) provide for fixed or guaranteed minimum benefits;

(2) the procedures for establishing and maintaining such separate accounts; and

(3) the reserve requirements for such contracts and agreements.

N.Y. Comp. Codes R. & Regs. Tit. 11 § 97.1

Amended, New York State Register, Volume XXXVI, Issue 25, effective 6/25/2014