New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter III - Policy and Certificate Provisions
Subchapter A - Life, Accident and Health Insurance
Part 57 - Smoker/nonsmoker Mortality Tables And Underwriting Classifications
Section 57.4 - Conditions

Universal Citation: 11 NY Comp Codes Rules and Regs ยง 57.4

Current through Register Vol. 46, No. 39, September 25, 2024

(a) For each plan of insurance with separate premium rates for smokers and nonsmokers, an insurer may:

(1) use composite mortality tables to determine minimum cash surrender values, minimum amounts and minimum periods of paid-up nonforfeiture benefits and minimum reserve liabilities.

(2) use smoker and nonsmoker mortality tables to determine the valuation net premiums and additional minimum reserves, if any, required by Insurance Law section 4218, and use composite mortality tables to determine minimum cash surrender values, and minimum amounts and minimum period of paid-up nonforfeiture benefits and basic minimum reserve liabilities; or

(3) use smoker and nonsmoker mortality tables to determine minimum cash surrender values, minimum amounts and minimum periods of paid-up nonforfeiture benefits and minimum reserve liabilities.

(b) Once an insurer has selected a method as described in paragraph (a)(1), (2) or (3) of this section to apply to a specific series of issues of a particular plan of insurance, that method must be continued for that block of business unless the superintendent approves a request for a change in method.

(c) For policies with separate premium rates for smokers and nonsmokers, delivered or issued for delivery in this State prior to September 19, 1984, with nonforfeiture values based upon 1980 CSO and 1980 CET composite mortality tables, aggregate basic reserve liabilities (exclusive of any additional minimum reserves required by Insurance Law section 4218 must not be less than aggregate minimum basic reserves according to the same composite mortality tables. For such policies, the insurer may use 1980 CSO and 1980 CET smoker and nonsmoker mortality tables to determine the valuation net premiums and additional minimum reserves, if any, required by Insurance Law section 4218.

(d) The reserve actually held for each policy (including any additional minimum reserve required by Insurance Law section 4218) must not be less than the cash surrender value of such policy at the same duration.

(e) In accordance with section 57.5(e) of this Part, an insurer may use composite mortality tables when a policy is issued to any individual up to an age identified in the policy between ages 15 and 18, inclusive, and smoker/nonsmoker mortality tables when the policy is issued to any individual over that age.

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