New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter III - Policy and Certificate Provisions
Subchapter A - Life, Accident and Health Insurance
Part 42 - Term Life Issuance And Renewal Restrictions; Nonforfeiture Values For Certain Life Insurance Policies
Subpart 42-2 - Term Life Issuance And Renewal Restrictions; Nonforfeiture Values For Certain Life Policies Issued On Or After January 1, 2008
Section 42-2.8 - Anniversary values when insurance benefits are not level between anniversaries

(a) For the purposes of section 4221 (c)(1) (k)(2) and (3) of the Insurance Law, the present value of the future guaranteed benefits payable between anniversaries are discounted to the anniversary preceding their payment using an effective rate of interest and assuming a uniform distribution of deaths or a constant force of mortality. The nonforfeiture interest rate and mortality assumptions for discounting are those required to demonstrate compliance with section 4221 (c)(1) of the Insurance Law.

(b) Alternatively, at the option of the life insurance company or fraternal benefit society, for the purposes of section 4221 (c)(1) (k)(2) and (3) of the Insurance Law, the present value of the future guaranteed death benefits may be determined by substituting, for the death benefits payable during any year, a time and amount weighted average of the death benefits provided as payable at the end of the year. As an example, for a death benefit of $100,000 on an anniversary that increases after 8 months to $160,000, a death benefit of $120,000 payable at the end of the year may be substituted.