New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter III - Policy and Certificate Provisions
Subchapter A - Life, Accident and Health Insurance
Part 50 - Separate Accounts and Separate Account Contracts
Subpart 50-1 - Separate Accounts and Separate Account Contracts Prior to January 1, 2023
Section 50-1.6 - Variable annuity contracts

(1) Each variable annuity contract delivered or issued for delivery in this State shall provide that neither expenses actually incurred, other than taxes on the investment return, nor mortality actually experienced, shall adversely affect the dollar amount of variable annuity payments to any annuitant for whom variable annuity payments have commenced. Where a group variable annuity contract provides that the scale of charges to be made against the assets of a separate account may be changed without the consent of the participants for whom variable annuity payments have commenced, the contract shall provide that such changes may not adversely affect the dollar amount of variable annuity payments which have commenced. The method of computing the dollar amount of variable annuity payments shall be such that, if the annual rate of investment return of the separate account, as defined in section 50-1.1(a)(6) of this Subpart, were six and one-half percent at all times from the issue of the contract, such amounts would not decrease. The superintendent may authorize the use of other methods or rates in computing the dollar amount of variable annuity payments where such methods or rates are determined by the superintendent to be fair, equitable, reasonable, and not less favorable to participants or annuitants.

(2) The reserve liability for variable annuities shall be established in compliance with the applicable provisions of section 4217 of the Insurance Law, as amended, and in accordance with actuarial procedures that recognize the variable nature of the benefits provided and their dependence on the net investment return of the separate account or accounts. With respect to individual variable annuities, the mortality table used in calculating the reserve liability shall be:

(3) Except as otherwise permitted by the superintendent, each authorized insurance company issuing variable annuity contracts shall accumulate an annuitant mortality fluctuation fund or funds over and above the required contract reserves and liabilities, pursuant to a plan for such accumulation which specifies reasonable maximum targets for such fund or funds and is approved by the superintendent as otherwise reasonable. Losses arising from mortality actually experienced shall first be charged against such mortality fluctuation fund or funds until such fund or funds are exhausted and shall then be charged against the special contingent reserve fund.

(1) discloses the smallest annual rate of investment return which would have to be earned on the assets of the separate account so that the dollar amount of variable annuity payments will not decrease; or

(2) sets forth the conditions under which the dollar amount of variable annuity payments will not decrease, and a statement of any explicit charges against the assets of the separate account.