Senate Bill S6439A

2017-2018 Legislative Session

Relates to principle based reserves

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Archive: Last Bill Status - In Senate Committee Insurance 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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Bill Amendments

2017-S6439 - Details

Current Committee:
Senate Insurance
Law Section:
Insurance Law
Laws Affected:
Amd §4217, Ins L
Versions Introduced in 2019-2020 Legislative Session:
S3633

2017-S6439 - Summary

Provides that the minimum reserve requirements and the minimum standard for the valuation of all individual and group life insurance policies and annuity contracts issued on or after January first, two thousand eighteen shall be the principle based valuation method established by the superintendent; the superintendent shall utilize the valuation manual adopted by the National Association of Insurance Commissioners unless the superintendent finds that a different method is necessary to protect policyholders.

2017-S6439 - Sponsor Memo

2017-S6439 - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6439
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               May 19, 2017
                                ___________
 
 Introduced  by Sen. SEWARD -- (at request of the Department of Financial
   Services) -- 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 principle based
   reserves
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subsection  (d)  of section 4217 of the insurance law, as
 added by chapter 22 of the laws of 1994, is amended to read as follows:
   (d) (1) The company shall maintain reserves  for  all  individual  and
 group   accident   and   health  insurance  policies,  INCLUDING  SALARY
 PROTECTION  INSURANCE  POLICIES,  AND  LEGAL  EXPENSE  INSURANCE,  which
 reserves  shall  reflect  a  sound value placed on its liabilities under
 such policies and shall NOT be [not] less than the reserves required  by
 regulations [which] THAT the superintendent shall promulgate.
   (2)  NOTWITHSTANDING  SUBSECTION  (C) OF THIS SECTION AND SECTION FOUR
 THOUSAND TWO HUNDRED EIGHTEEN OF THIS ARTICLE, THE COMPANY  SHALL  MAIN-
 TAIN  RESERVES  FOR ALL INDIVIDUAL AND GROUP LIFE INSURANCE POLICIES AND
 ANNUITY CONTRACTS ISSUED ON OR AFTER JANUARY FIRST, TWO  THOUSAND  EIGH-
 TEEN,  WHICH  RESERVES SHALL REFLECT A SOUND VALUE PLACED ON ITS LIABIL-
 ITIES UNDER SUCH POLICIES AND CONTRACTS AND SHALL NOT BE LESS  THAN  THE
 RESERVES  REQUIRED  BY REGULATIONS THAT THE SUPERINTENDENT SHALL PROMUL-
 GATE; PROVIDED, HOWEVER, THAT THE SUPERINTENDENT IN SUCH REGULATIONS MAY
 CONTINUE TO APPLY THE PROVISIONS OF SUBSECTION (C) OF THIS  SECTION  AND
 SECTION FOUR THOUSAND TWO HUNDRED EIGHTEEN OF THIS ARTICLE TO ANY CLASS-
 ES  OR  TYPES OF SUCH POLICIES AND CONTRACTS AS THE SUPERINTENDENT DEEMS
 APPROPRIATE.
   § 2. This act shall take effect immediately.
 

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10005-02-7

2017-S6439A (ACTIVE) - Details

Current Committee:
Senate Insurance
Law Section:
Insurance Law
Laws Affected:
Amd §4217, Ins L
Versions Introduced in 2019-2020 Legislative Session:
S3633

2017-S6439A (ACTIVE) - Summary

Provides that the minimum reserve requirements and the minimum standard for the valuation of all individual and group life insurance policies and annuity contracts issued on or after January first, two thousand eighteen shall be the principle based valuation method established by the superintendent; the superintendent shall utilize the valuation manual adopted by the National Association of Insurance Commissioners unless the superintendent finds that a different method is necessary to protect policyholders.

2017-S6439A (ACTIVE) - Sponsor Memo

2017-S6439A (ACTIVE) - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6439--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               May 19, 2017
                                ___________
 
 Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
   printed to be committed to the Committee  on  Insurance  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN  ACT  to  amend  the  insurance  law,  in relation to principle based
   reserves

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  4217 of the insurance law is amended by adding a
 new subsection (g) to read as follows:
   (G) (1) THIS SUBSECTION SHALL APPLY ONLY TO INDIVIDUAL AND GROUP  LIFE
 INSURANCE  POLICIES  AND  ANNUITY  CONTRACTS  ISSUED ON OR AFTER JANUARY
 FIRST, TWO THOUSAND EIGHTEEN.
   (2) FOR PURPOSES OF THIS  SUBSECTION,  "VALUATION  MANUAL"  MEANS  THE
 VALUATION  MANUAL  ADOPTED  BY  THE  NATIONAL  ASSOCIATION  OF INSURANCE
 COMMISSIONERS ON DECEMBER SECOND, TWO THOUSAND TWELVE,  AS  SUBSEQUENTLY
 AMENDED  ON  JUNE  EIGHTH, TWO THOUSAND FIFTEEN, NOVEMBER TWENTY-SECOND,
 TWO THOUSAND FIFTEEN, APRIL SIXTH,  TWO  THOUSAND  SIXTEEN,  AND  AUGUST
 TWENTY-NINTH, TWO THOUSAND SIXTEEN.
   (3)  NOTWITHSTANDING  SUBSECTION  (C) OF THIS SECTION AND SECTION FOUR
 THOUSAND TWO HUNDRED EIGHTEEN  OF  THIS  ARTICLE,  THE  MINIMUM  RESERVE
 REQUIREMENTS  AND THE MINIMUM STANDARD FOR THE VALUATION OF ALL INDIVID-
 UAL AND GROUP LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS ISSUED ON OR
 AFTER JANUARY FIRST, TWO THOUSAND EIGHTEEN SHALL BE THE SUPERINTENDENT'S
 PRINCIPLE BASED VALUATION METHOD  DEFINED  IN  PARAGRAPH  FOUR  OF  THIS
 SUBSECTION   AND   ALL  REGULATIONS  PROMULGATED  THEREUNDER.    NOTHING
 CONTAINED WITHIN  THIS  SUBSECTION  SHALL  LESSEN  THE  SUPERINTENDENT'S
 POWERS  UNDER  ANY  OTHER  PROVISIONS  OF  THIS CHAPTER OR THE FINANCIAL
 SERVICES LAW, INCLUDING, WITHOUT LIMITATION, THE SUPERINTENDENT'S POWERS
 AND OBLIGATIONS TO ENSURE THE SOLVENCY AND FISCAL HEALTH OF INSURERS AND
 TO PROTECT POLICYHOLDERS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

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