New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter IV - Financial Condition Of Insurer and Reports to Superintendent
Subchapter B - Life Insurers
Part 94 - Valuation Of Individual And Group Accident And Health Insurance Reserves
Section 94.8 - Reserves for waiver of premium on accident and health policies
Current through Register Vol. 46, No. 39, September 25, 2024
The morbidity tables required by this Part are based on exposures that include contracts on premium waiver as in-force contracts. Hence, contract reserves based on these tables are not reserves on "active lives" but rather reserves on contracts "in force." This is true for the 1964 Commissioners Disability Table Volume III Committee Recommendation and Basic Tables pp. i, iii, and 1 through 16[FN5] (64CDT) and for both the 1985 Commissioners Individual Disability Tables A found in Report of the Committee to Recommend New Disability Tables for Valuation Transactions of Society of Actuaries 1985, Volume XXXVII, pp. 449 through 466[FN5] (85CIDA) and 1985 Commissioners Individual Disability Tables B found in APPENDIX to Report of October 18, 1984 to National Association of Insurance Commissioners (NAIC) Life, Health and Accident Standing Technical Actuarial (EX5) Task Force concerning Proposed New Minimum Valuation Standards for Loss of Time (Disability Income) Benefits NAIC Proceedings - 1985 Vol. I, pp. 486 through 540[FN5] (85CIDB). Copies of such documents, as adopted by the Health Insurance Association of America, 1201 F Street, NW, Suite 500, Washington, DC 20004-1204, in 1965, the Society of Actuaries, 475 N. Martingale Road, Suite 800, Schaumburg, IL 60173-2226, in 1986, and the National Association of Insurance Commissioners, 2301 McGee Street, Suite 800, Kansas City, MO 64108-2662, in 1983, respectively, are available for public inspection at the Insurance Department offices at One Commerce Plaza, Albany, NY 12257 and at 25 Beaver Street, New York, NY 10004. Accordingly, tabular reserves using any of these tables should value reserves on the following basis:
(a) Claim reserves should include reserves for premiums expected to be waived, valuing as a minimum the valuation net premium being waived.
(b) Premium reserves should include contracts on premium waiver as in-force contracts, valuing as a minimum the unearned modal valuation net premium being waived.
(c) Contract reserves should include recognition of the waiver of premium benefit in addition to other contract benefits provided for, valuing as a minimum the valuation net premium to be waived.
[FN3] 1964 COMMISSIONERS DISABILITY TABLE Copyright 1965 by Health Insurance Association of America, in Washington, DC.
[FN4] TRANSACTIONS OF SOCIETY OF ACTUARIES 1985, VOLUME XXXVII Copyright 1986 by Society of Actuaries, in Schaumburg, Illinois.
[FN5] NAIC PROCEEDINGS - 1985 VOL. I Copyright 1985 by National Association of Insurance Commissioners, in Kansas City, Missouri.
