Bill Text: NY S06439 | 2017-2018 | General Assembly | Amended

---

Bill Title: 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.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2018-01-03 - REFERRED TO INSURANCE [S06439 Detail]

Download: New_York-2017-S06439-Amended.html

---

                STATE OF NEW YORK
        ________________________________________________________________________
                                         6439--A
                               2017-2018 Regular Sessions
                    IN SENATE
                                      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:
     1    Section  1.  Section  4217 of the insurance law is amended by adding a
     2  new subsection (g) to read as follows:
     3    (g) (1) This subsection shall apply only to individual and group  life
     4  insurance  policies  and  annuity  contracts  issued on or after January
     5  first, two thousand eighteen.
     6    (2) For purposes of this  subsection,  "valuation  manual"  means  the
     7  valuation  manual  adopted  by  the  National  Association  of Insurance
     8  Commissioners on December second, two thousand twelve,  as  subsequently
     9  amended  on  June  eighth, two thousand fifteen, November twenty-second,
    10  two thousand fifteen, April sixth,  two  thousand  sixteen,  and  August
    11  twenty-ninth, two thousand sixteen.
    12    (3)  Notwithstanding  subsection  (c) of this section and section four
    13  thousand two hundred eighteen  of  this  article,  the  minimum  reserve
    14  requirements  and the minimum standard for the valuation of all individ-
    15  ual and group life insurance policies and annuity contracts issued on or
    16  after January first, two thousand eighteen shall be the superintendent's
    17  principle based valuation method  defined  in  paragraph  four  of  this
    18  subsection   and   all  regulations  promulgated  thereunder.    Nothing
    19  contained within  this  subsection  shall  lessen  the  superintendent's
    20  powers  under  any  other  provisions  of  this chapter or the financial
    21  services law, including, without limitation, the superintendent's powers
    22  and obligations to ensure the solvency and fiscal health of insurers and
    23  to protect policyholders.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10005-04-7
        S. 6439--A                          2
     1    (4) (A) The superintendent's principle based valuation method shall be
     2  the reserve  standards,  valuation  methods,  assumptions,  and  related
     3  requirements  set  forth  in regulations to be promulgated by the super-
     4  intendent.
     5    (B)  Subject to subparagraphs (C) and (D) of this paragraph, the regu-
     6  lations establishing  the  superintendent's  principle  based  valuation
     7  method  shall  utilize  the  reserve  standards,  valuation methods, and
     8  related requirements in the valuation manual.
     9    (C) The regulations establishing the superintendent's principle  based
    10  valuation  method  may  deviate from any of the reserve standards, valu-
    11  ation methods, assumptions, and related requirements  in  the  valuation
    12  manual  if  the  superintendent  determines  that an alternative reserve
    13  standard, valuation method, assumption, and/or  related  requirement  is
    14  reasonably  necessary  to  protect  policyholders  or the people of this
    15  state.
    16    (D) The regulations establishing the superintendent's principle  based
    17  valuation method may deviate from the reserve standards, valuation meth-
    18  ods, and related requirements in the valuation manual if the superinten-
    19  dent determines that an amendment to the valuation manual adopted by the
    20  National  Association  of  Insurance  Commissioners after August twenty-
    21  ninth, two thousand sixteen, is reasonably necessary to protect  policy-
    22  holders  or the people of this state and should be incorporated into the
    23  superintendent's principle based valuation method.
    24    § 2. This act shall take effect immediately.