Current through Register Vol. 46, No. 39, September 25, 2024
(a) The minimum
valuation standards specified by this Part are prior to reflecting any
reinsurance ceded.
(b) A credit for
reinsurance may be recognized for reinsurance agreements that comply with the
Insurance Law and this Title, including Insurance Law section 1308, Part 79
(Insurance Regulation 133), Part 125 (Insurance Regulation 20), Part 126
(Insurance Regulation 114), Part 83 (Insurance Regulation 172), and Part 127
(Insurance Regulation 102) of this Title, and any other applicable regulations,
as applicable.
(c) For each such
reinsurance agreement, the credit for reinsurance shall be the difference
between the reserve determined prior to reflecting such reinsurance and the
reserve determined after reflecting such reinsurance, where the reserve after
reflecting such reinsurance is calculated as follows:
(1) for individual term life insurance
policies and individual life certificates under a group term life contract
subject to section
103.4 of this Part, the greater
of:
(i) the amount determined pursuant to
section 103.4(c)(1) of
this Part reduced by the credit for reinsurance determined pursuant to the
Insurance Law and this Title, including Insurance Law section 1308, Part 79
(Insurance Regulation 133), Part 125 (Insurance Regulation 20), Part 126
(Insurance Regulation 114), Part 83 (Insurance Regulation 172), and Part 127
(Insurance Regulation 102) of this Title, and any other applicable regulations,
as applicable; and
(ii) the minimum
aggregate reserve after reflection of such reinsurance ceded calculated in
accordance with the methodology and assumptions prescribed by the valuation
manual;
(2) for the
policies, contracts, certificates, and benefits subject to section
103.5 of this Part, the greater
of:
(i) the amount determined pursuant to
section 103.5(d)(1) of
this Part reduced by the credit for reinsurance determined pursuant to the
Insurance Law and this Title, including Insurance Law section 1308, Part 79
(Insurance Regulation 133), Part 125 (Insurance Regulation 20), Part 126
(Insurance Regulation 114), Part 83 (Insurance Regulation 172), and Part 127
(Insurance Regulation 102) of this Title, and any other applicable regulations,
as applicable; and
(ii) the
minimum aggregate reserve after reflection of such reinsurance ceded calculated
in accordance with the methodology and assumptions prescribed by the valuation
manual;
(3) for variable
annuity contracts and policies subject to section
103.6 of this Part, the greater
of:
(i) the amount determined in section
103.6(d) or
section 103.6(e) of this
Part, as applicable, reduced by the credit for reinsurance determined pursuant
to the Insurance Law and this Title, including Insurance Law section 1308, Part
79 (Insurance Regulation 133), Part 125 (Insurance Regulation 20), Part 126
(Insurance Regulation 114), Part 83 (Insurance Regulation 172), and Part 127
(Insurance Regulation 102) of this Title, and any other applicable regulations,
as applicable; and
(ii) the minimum
aggregate reserve after reflection of such reinsurance ceded calculated in
accordance with the methodology and assumptions prescribed by the valuation
manual;
(4) for all
individual and group life insurance policies, annuity contracts, and accident
and health insurance contracts subject to section
103.7 of this Part, the greater
of:
(i) the amount determined in section
103.7(b)(1) or
section 103.7(c)(1) of
this Part, as applicable, reduced by the credit for reinsurance determined
pursuant to the Insurance Law and this Title, including Insurance Law section
1308, Part 79 (Insurance Regulation 133), Part 125 (Insurance Regulation 20),
Part 126 (Insurance Regulation 114), Part 83 (Insurance Regulation 172), and
Part 127 (Insurance Regulation 102) of this Title, and any other applicable
regulations, as applicable; and
(ii) the minimum aggregate reserve after
reflection of such reinsurance ceded calculated in accordance with the
methodology and assumptions prescribed by the valuation manual.
