New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter III - Policy and Certificate Provisions
Subchapter A - Life, Accident and Health Insurance
Part 44 - Individual Deferred Annuities, Market-value Adjustments Withdrawal Charges, Availability Of Cash Values
Section 44.6 - Availability of cash surrender values
Current through Register Vol. 46, No. 39, September 25, 2024
(a) Cash surrender values shall be available under all contracts subject to section 4223 of the Insurance Law, except for the following:
(b) Notwithstanding anything to the contrary, where contracts without cash surrender benefits are permitted, a market-value adjustment formula may be used for purposes of determining an amount for transfer, where a contractholder exercises a contract option, if any, to transfer an accumulation amount from the general account of the company to a separate account of the company.
(c) In contracts providing guaranteed rates and having cash surrender values at any time, an unadjusted cash surrender value must be available on each guaranteed benefit date and the specified time interval for any guaranteed rate shall not exceed 10 years. For example, a contract providing a guaranteed rate for five years must provide an unadjusted cash value at the end of the five years regardless of whether cash surrender values are available during the five years subject to a market-value adjustment and/or a withdrawal charge or such values with or without a withdrawal charge are not available prior to the end of five years.
(d) Contracts not providing guaranteed rates, but providing cash surrender values, must provide a cash surrender value without any market-value adjustment (but subject to any applicable withdrawal charge) at least once each year.