New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter IV - Financial Condition Of Insurer and Reports to Superintendent
Subchapter B - Life Insurers
Part 96 - Surplus Management Account
Section 96.0 - Preamble
Current through Register Vol. 46, No. 39, September 25, 2024
(a) Section 4231 of the Insurance Law provides that a life insurance company issuing participating insurance policies and annuity contracts may set aside such sums as may be deemed advisable for the accumulation of surplus. It is necessary and appropriate that these companies establish a financial accounting system whereby the funds so accumulated can be readily identified and managed in a manner that preserves equity among all classes of policyholders.
(b) This Part permits mutual life insurers, and stock life insurers issuing participating insurance policies and annuity contracts, to establish a surplus management account and allocate funds thereto in an equitable manner for the purposes set forth in this Part, all pursuant to a plan filed with and approved by the superintendent. The establishment and maintenance of such an account should permit life insurers to embody in their account systems recognized financial management practices that shall not alter established policyholder dividend distribution practices.
