S T A T E O F N E W Y O R K
________________________________________________________________________
7535
I N S E N A T E
May 9, 2016
___________
Introduced by Sen. SEWARD -- read twice and ordered printed, and when
printed to be committed to the Committee on Insurance
AN ACT to amend the insurance law, in relation to the valuation of life
insurance policies and contracts
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph 1 of subsection (a) of section 4217 of the insur-
ance law, as amended by chapter 22 of the laws of 1994, is amended to
read as follows:
(1) The superintendent shall annually [value, or] cause EVERY LIFE
INSURANCE COMPANY DOING BUSINESS IN THIS STATE to [be valued,] VALUE the
reserve liabilities (hereinafter called reserves) for all ITS outstand-
ing insurance policies and contracts [of every life insurance company
doing business in this state], except that, in the case of an alien
company, such valuation shall be limited to its United States business[,
and may]. THE SUPERINTENDENT SHALL certify the amount of any such
reserves, specifying the mortality table or tables, rate or rates of
interest and methods (net level premium method or other) used in the
calculation of such reserves, UNLESS THE SUPERINTENDENT DETERMINES THAT
THE MEMORANDUM PREPARED PURSUANT TO PARAGRAPH THREE OF SUBSECTION (E) OF
THIS SECTION TO SUPPORT THE ACTUARIAL OPINION OF RESERVES REQUIRED BY
PARAGRAPH ONE OF SUBSECTION (E) OF THIS SECTION FAILS TO MEET THE STAND-
ARDS PRESCRIBED BY REGULATION. In calculating such reserves, [the
superintendent] LIFE INSURANCE COMPANIES may use group methods and
approximate averages for fractions of a year or otherwise.
S 2. Paragraph 1 of subsection (e) of section 4217 of the insurance
law, as added by chapter 22 of the laws of 1994, is amended to read as
follows:
(1) General. Every life insurance company doing business in this state
shall annually submit the opinion of a qualified actuary as to whether
the reserves and related actuarial items held in support of the policies
and contracts specified by the superintendent by regulation are computed
appropriately, are based on assumptions which satisfy contractual
provisions, are consistent with prior reported amounts and comply with
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15288-01-6
S. 7535 2
applicable laws of this state. The superintendent [by regulation] shall
define the specifics of this opinion and add any other items deemed to
be necessary to its scope SOLELY BY REGULATION.
S 3. Subparagraph (C) of paragraph 4 of subsection (e) of section 4217
of the insurance law, as added by chapter 22 of the laws of 1994, is
amended to read as follows:
(C) The opinion shall be based on standards adopted from time to time
by the Actuarial Standards Board and on such additional standards as the
superintendent may by regulation prescribe. THE SUPERINTENDENT SHALL
NOT PRESCRIBE ANY ASSUMPTIONS OR OTHER ADDITIONAL STANDARDS TO BE USED
BY THE QUALIFIED ACTUARY WHEN FORMING THE OPINION BEYOND THOSE
PRESCRIBED BY REGULATION.
S 4. Paragraph 4 of subsection (f) of section 4217 of the insurance
law, as added by chapter 22 of the laws of 1994, is amended to read as
follows:
(4) [Without the specific approval of the superintendent subject to
such conditions as he may prescribe and as provided by regulation, an
insurer shall not] AN INSURER MAY aggregate the reserves referred to in
[two or more of paragraph] PARAGRAPHS one, two [or] AND three of this
subsection. [Such regulation may prescribe the conditions under which
the valuation of two or more classes of business of insurance or the
valuation of all of its insurance business to which this section applies
may be combined.] THE SUPERINTENDENT MAY, SOLELY BY REGULATION, REQUIRE
INSURERS TO SHOW THE RESULTS OF ASSET ADEQUACY ANALYSIS AS TO THE
ADEQUACY OF RESERVES REFERRED TO IN PARAGRAPHS ONE, TWO AND THREE OF
THIS SUBSECTION SEPARATELY IN THE ACTUARIAL MEMORANDUM PREPARED PURSUANT
TO PARAGRAPH THREE OF SUBSECTION (E) OF THIS SECTION, BUT MAY NOT
PROHIBIT INSURERS FROM AGGREGATING THE RESERVES REFERRED TO IN PARA-
GRAPHS ONE, TWO AND THREE OF THIS SUBSECTION FOR THE PURPOSES OF MEETING
THE MINIMUM STANDARDS FOR THE VALUATION OF LIFE INSURANCE POLICIES,
ANNUITIES AND GUARANTEED INVESTMENT CONTRACTS, AND INDIVIDUAL AND GROUP
ACCIDENT AND HEALTH INSURANCE POLICIES.
S 5. This act shall take effect immediately.
