NY State Senate Bill 2015-S7535

Archive: Last Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 07, 2016	referred to insurance delivered to assembly passed senate
May 23, 2016	ordered to third reading cal.1012 committee discharged and committed to rules
May 09, 2016	referred to insurance

Votes

- Jun 7, 2016 - Floor Vote
  S7535
  
  61
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  2
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 7, 2016
      
      aye (61)
      
      Addabbo Jr.
      
      Akshar
      
      Amedore
      
      Avella
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Carlucci
      
      Comrie
      
      Croci
      
      DeFrancisco
      
      Dilan
      
      Espaillat
      
      Farley
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Hamilton
      
      Hannon
      
      Hassell-Thompson
      
      Hoylman-Sigal
      
      Kaminsky
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Latimer
      
      Little
      
      Marcellino
      
      Marchione
      
      Martins
      
      Montgomery
      
      Murphy
      
      Nozzolio
      
      O'Mara
      
      Ortt
      
      Panepinto
      
      Parker
      
      Peralta
      
      Perkins
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Sanders Jr.
      
      Savino
      
      Serino
      
      Serrano
      
      Seward
      
      Squadron
      
      Stavisky
      
      Stewart-Cousins
      
      Valesky
      
      Venditto
      
      Young
      
      excused (2)
      
      Diaz
      
      Persaud
  May 23, 2016 - Rules Committee Vote
  S7535
  
  22
  
  Aye
  
  0
  
  Nay
  
  3
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: May 23, 2016
      
      aye (22)
      
      Bonacic
      
      Breslin
      
      Carlucci
      
      DeFrancisco
      
      Dilan
      
      Espaillat
      
      Farley
      
      Flanagan
      
      Golden
      
      Hannon
      
      Hassell-Thompson
      
      LaValle
      
      Lanza
      
      Larkin
      
      Little
      
      Marcellino
      
      Montgomery
      
      Parker
      
      Robach
      
      Stewart-Cousins
      
      Valesky
      
      Young
      
      aye wr (3)
      
      Gianaris
      
      Krueger
      
      Perkins

2015-S7535 (ACTIVE) - Details

See Assembly Version of this Bill:: A10582
Current Committee:: Assembly Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §4217, Ins L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S1477, A2586
2019-2020: S3519
2021-2022: S4043

2015-S7535 (ACTIVE) - Summary

Relates to requirements imposed for the valuation of the reserve liabilities of life insurance policies and contracts.

2015-S7535 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S7535

 TITLE OF BILL :

An act to amend the insurance law, in relation to the valuation of
life insurance policies and contracts

 PURPOSE :

The purpose of this bill is to amend § 4217 of the insurance law (the
standard valuation law for life insurance) to require that any
additional standards relating to this section proposed for imposition
by the Department of Financial Services should be prescribed by
regulation.

 SUMMARY OF PROVISIONS :

This bill amends *4217(a)(1), (e)(l), (e)(4)(C) and (f)(4) of the
insurance law to refine the rules related to the submission of
reserving reports that are required under current law from life
company appointed actuaries. The amendments would: 1) permit the
appointed actuary to aggregate life, annuity and health business for
purposes of performing asset adequacy testing in support of an
actuarial opinion on reserve adequacy; and 2) restrict the
Superintendent from imposing any assumptions or other additional
standards to be used by the appointed actuary in forming his actuarial

opinion, beyond those prescribed by regulation.

 JUSTIFICATION :

Additional actuarial standards that go beyond the current law should
only be imposed on life insurance companies via regulation, subject to
proposal and comment, and not by arbitrary guidance. Such guidance is
currently imposed on life companies annually by the Department of
Financial Services without any requirement that it be published for
feedback and comment before imposition. The requisite transparency
established in this bill will result in any additional standards or
assumptions developed by the Department being proposed for public
comment and feedback, subject to the state administrative procedures
act (SAPA), before implementation. This is especially important since
subjective, overly-conservative reserving requirements, which can
currently be imposed via fiat through mere guidance, can result in
higher product pricing and less product availability for life
insurance products sold in New York.

Despite their importance, life insurance products are not required as
a matter of law or policy, as is the case with other types of
insurance products such as automobile or homeowners insurance. People
who purchase life insurance products are choosing to do so with
discretionary income and competing priorities and are also often
lacking a clear understanding of the importance of the financial
protection the products provide. It is in the interest of this state
to assist in the promotion of these products, at affordable prices,
which provide its citizens with the tools to protect their own
financial futures. In turn, the purchase of these products by the
citizens of this state alleviates or reduces their need for public
assistance in times of need, which decreases financial stress on the
state.

 LEGISLATIVE HISTORY :

New bill.

 EFFECTIVE DATE :
Immediately.

2015-S7535 (ACTIVE) - Bill Text download pdf

                            
                    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.

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Senate Bill S7535

Sponsored By

Archive: Last Bill Status - In Assembly Committee

Jun 7, 2016 - Floor Vote

Floor Vote: Jun 7, 2016

May 23, 2016 - Rules Committee Vote

Rules Committee Vote: May 23, 2016

2015-S7535 (ACTIVE) - Details

2015-S7535 (ACTIVE) - Summary

2015-S7535 (ACTIVE) - Sponsor Memo

2015-S7535 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S7535

Share this bill

Sponsored By

James L. Seward

Archive: Last Bill Status - In Assembly Committee

2015-S7535 (ACTIVE) - Details

2015-S7535 (ACTIVE) - Summary

2015-S7535 (ACTIVE) - Sponsor Memo

2015-S7535 (ACTIVE) - Bill Text download pdf

Comments