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 44.7 - Memorandum in support of contract form filing
Universal Citation: 11 NY Comp Codes Rules and Regs ยง 44.7
Current through Register Vol. 46, No. 12, March 20, 2024
(a) Each contract 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
contracts;
(2) containing, or
accompanied by, an actuarial opinion that the market-value adjustment formula
provides reasonable equity to terminating and continuing contractholders and to
the company; and
(3) demonstrating
the contract's compliance with the nonforfeiture provisions of section
4223 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 and a description of each of the elements used in the formula,
identification of 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 contract.
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