New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter III - Policy and Certificate Provisions
Subchapter A - Life, Accident and Health Insurance
Part 43 - Individual Life Insurance Market-value Adjustment
Section 43.7 - Memorandum in support of policy form filing
Universal Citation: 11 NY Comp Codes Rules and Regs ยง 43.7
Current through Register Vol. 46, No. 39, September 25, 2024
(a) Each policy form containing a market-value adjustment formula that is filed with the superintendent pursuant to section 3201 (c)(10) of the Insurance Law shall be accompanied by a memorandum, in form and substance satisfactory to the superintendent:
(1) describing the
market-value adjustment formula provided in the policy;
(2) containing, or accompanied by, an
actuarial opinion that the market-value adjustment formula provides reasonable
equity to terminating and continuing policyholders and to the company;
and
(3) demonstrating that the
unadjusted cash surrender values under the policy comply with the nonforfeiture
provisions of section
4221
(n)(1) of the Insurance Law.
(b) The description of the market-value adjustment formula referred to in paragraph (a)(1) of this section shall include:
(1) the provisions of the
formula, a description of each of the elements used in the formula and
identification of any index used in the formula and the source or publication
where the data used in the formula can be found;
(2) a statement of the situations in which
the formula will be applied;
(3) a
statement of the frequency with which market-value adjustments will be
calculated; and
(4) numerical
examples of both upward and downward adjustments to cash surrender benefits due
to the application of the formula.
(c) The actuarial opinion referred to in paragraph (a)(2) of this section shall include:
(1) a statement of the elements used in the
market-value adjustment formula, and how the operation of such elements will
result in reasonable equity as provided in paragraph (a)(2) of this
section;
(2) the actuary's opinion
that such equity is maintained for both upward and downward adjustments;
and
(3) at least two numerical
examples (both containing an upward and downward adjustment) supporting the
opinion that reasonable equity is provided. These examples should show how the
market-value adjustment formula will produce results reasonably similar to
changes in the market value of a hypothetical asset which is invested to match
the payment of benefits guaranteed under the policy.
Disclaimer: These regulations may not be the most recent version. New York may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
