New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter IV - Financial Condition Of Insurer and Reports to Superintendent
Subchapter B - Life Insurers
Part 98 - Valuation Of Life Insurance Reserves
Section 98.10 - Minimum reserves for credit life insurance
Universal Citation: 11 NY Comp Codes Rules and Regs ยง 98.10
Current through Register Vol. 46, No. 39, September 25, 2024
(a) For the purposes of this section, the following terms shall have the following meanings:
(1) Credit life insurance means insurance on
the life of a debtor in connection with a specific loan or other credit
transaction in this State to provide payment to a creditor in the event of the
death of the debtor. Credit life insurance does not include:
(i) insurance written in connection with a
credit transaction that is:
(a) secured by a
first mortgage or deed of trust; and
(b) made to finance the purchase of real
property or the construction of a dwelling thereon, or to refinance a prior
credit transaction made for such a purpose;
(ii) insurance sold as an isolated
transaction on the part of the insurer and not related to an agreement or a
plan for insuring debtors of the creditor;
(iii) insurance for which no identifiable
charge is made to the debtor; and
(iv) insurance on accounts
receivable.
(2) Creditor
has the meaning contained in section
185.1(d) of this
Title (Regulation 27-A).
(3) Debtor
has the meaning contained in section
185.1(e) of this
Title (Regulation 27-A).
(b) Minimum mortality standards.
(1) The following minimum mortality standards
may be used for policies issued on or after January 1, 2004, and shall be used
for policies issued on or after January 1, 2009:
(i) the minimum standard for both male and
female insureds shall be the 2001 CSO Male Composite Ultimate Mortality Table,
as defined in Part 100 of this Title (Regulation 179); and
(ii) where the credit life insurance policy
or certificate insures two lives, the minimum standard shall be twice the
mortality in the 2001 CSO Male Composite Ultimate Mortality Table based on the
age of the older insured.
(2) For other policies, the minimum mortality
standard is as stated in section
4217
(c)(2) of the Insurance Law.
(c) Minimum standards.
(1) The interest rates used in determining
the minimum standard for valuation shall be the calendar year statutory
valuation interest rates as defined in section
4217
(c)(4) of the Insurance Law.
(2) The method used in determining the
minimum standard for valuation for any policy shall be the greater of:
(i) the commissioners reserve valuation
method; or
(ii) cash surrender
value or premium refund.
(3) In applying the commissioners reserve
valuation method, consideration should be given to the period of time for which
renewability of benefits is guaranteed under the contract. If benefits are
guaranteed for less than one year, the method produces a reserve equal to the
mortality cost from the valuation date to the premium "paid-to" date.
Disclaimer: These regulations may not be the most recent version. New York may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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