New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter III - Policy and Certificate Provisions
Subchapter A - Life, Accident and Health Insurance
Part 54 - Variable Life Insurance
Section 54.4 - Investment policy
Universal Citation: 11 NY Comp Codes Rules and Regs ยง 54.4
Current through Register Vol. 46, No. 39, September 25, 2024
(a)
(1) No material change in the investment
policy of a separate account established pursuant to section
4240 of the
Insurance Law shall be made unless the insurer has notified the superintendent,
in writing, of its intention to make such change at least 60 days prior to
submitting it for any other authorization as may be required, or such shorter
period as the superintendent may permit, and he has not disapproved it within
such period.
(2) No material change
in the investment policy of a separate account established by a foreign or
alien insurer, pursuant to the section of the insurance law of such insurer's
state of domicile which corresponds to section 4240, shall be made unless the
insurer has filed such change with the superintendent, in writing, at least 60
days prior to submitting for any other authorization as may be required, or
such shorter period as the superintendent may permit.
(b) Such material change in the investment policy of a separate account shall be disapproved if such material change is deemed to be detrimental to the interests of the policyholders in such separate account or render the insurer's operations hazardous to the public or its policyholders in this State.
(c)
(1) Any policyholder objecting to a proposed
material change in the investment policy of a separate account, which change
subsequently becomes effective, shall be given the option to convert within 60
days after the effective date of such change or the receipt of a notice of the
options available, whichever is later, without evidence of insurability, under
one of the following options, to a general account life insurance policy issued
by the insurer, or a subsidiary of the insurer, its parent, or an affiliate
licensed to do a life insurance business in this State:
(i) If the policy is a scheduled premium
policy, as defined by section
54.1(l) of this
Part and is in force on a premium-paying basis, an insurer may offer either or
both of the following options:
(a) conversion
as of the original issue age to a substantially comparable form of general
account life insurance, based on the insurer's premium rate for a general
account life insurance policy at the original issue age for an amount of
insurance not exceeding the death benefit of the variable life insurance policy
on the date of conversion;
(b)
conversion as of the attained age to a substantially comparable form of general
account life insurance for an amount of insurance not exceeding the excess of
the death benefit of the variable life insurance policy on the date of
conversion over:
(1) its net cash surrender
value on the date of conversion if the policyholder elects to surrender the
variable life policy for its net cash surrender value; or
(2) the death benefit payable under any
paid-up insurance option if the policyholder elects such nonforfeiture option
under the variable life policy.
(ii) If the policy is in force as paid-up
variable life insurance, then conversion will be to a substantially comparable
paid-up general account life insurance policy for an amount of insurance not
exceeding the death benefit of the variable life insurance policy on the date
of conversion.
(iii) If the policy
is a flexible premium policy as defined by section
54.1(m) of this
Part and is in force, an insurer must offer a conversion to a substantially
comparable flexible premium general account life insurance policy for an amount
of insurance not exceeding the death benefit of the variable life insurance
policy on the date of conversion.
(2) If conversion is made pursuant to clause
(i)(a) of this paragraph or subparagraph (1)(ii) of this subdivision, such
conversion shall be made in accordance with rules filed with the superintendent
not less than 30 days prior to their implementation.
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