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 98.3 - Definitions
Current through Register Vol. 46, No. 39, September 25, 2024
As used in this Part, the following terms shall have the following meanings:
(a) Basic reserves means reserves calculated in accordance with the principles of section 4217 of the Insurance Law, as interpreted by this Part.
(b) Commissioners reserve valuation method means the method defined in section 4217 (c)(6) of the Insurance Law or, in the case of policies subject to section 98.6 of this Part, as set forth in section 98.6 of this Part, based on section 4217 (c)(6)(C) of the Insurance Law.
(c) Contract segmentation method shall have the meaning set forth in section 98.5 of this Part.
(d) Deficiency reserves means the excess of minimum reserves calculated in accordance with the principles of section 4218 of the Insurance Law, as interpreted by this Part, over basic reserves.
(e) Gross premium means the premium for life insurance and endowment benefits, and does not include the premium for policy riders such as accidental death benefits.
(f) Guaranteed gross premiums means the premiums under a policy of life insurance that are guaranteed and determined at issue.
(g) Indeterminate premium policy means a life insurance policy other than a universal life insurance policy, whether participating or nonparticipating, which provides for future premium determination, the amounts of which are to be determined by the insurance company based on then estimates of future experience, and which provides a schedule of guaranteed gross premiums and a schedule of current gross premiums. Unless otherwise stated, for the purpose of applying this Part, the guaranteed gross premiums shall be considered the gross premiums.
(h) Initial current gross premium scale for an indeterminate premium policy means the schedule of gross premiums, based on current assumptions at time of policy issue, that would be payable if there were no subsequent prospective readjustments to the rate of premiums.
(i) Insurer means a life insurance company, fraternal benefit society or an accredited reinsurer that reinsures life insurance, whether within or outside the State, or writes life insurance outside the State.
(j) Maximum valuation interest rates means the interest rates, defined in section 4217 (c)(4) of the Insurance Law, allowed as the maximum permissible rates for the valuation of life insurance policies. The guarantee duration is the maximum number of years the life insurance can remain in force on a basis guaranteed in the policy or under options to convert to plans of life insurance with premium rates or nonforfeiture values or both which are guaranteed in the original policy.
(k) Minimum mortality standards means the standards prescribed in section 4217 (c)(2)(A) of the Insurance Law and in regulations, including this Part, promulgated pursuant to such section.
(l) Policy means an individual life insurance policy or a group life insurance certificate.
(m) Segmented method for varying premium term life insurance means the standards prescribed in section 98.6(a)(7) of this Part and applying to policies with varying premiums with an initial level premium rate guaranteed for up to 30 years ending at or before age 80, followed by increasing guaranteed premiums thereafter.
(n) Segmented reserves shall have the meaning set forth in section 98.6 of this Part.
(o) Superintendent means the Superintendent of Financial Services of the State of New York.
(p) Unitary reserves means the present value of all future guaranteed life insurance and endowment benefits to the mandatory expiry date of the policy less the present value of all future modified net premiums to such date, where:
(q) Universal life insurance policy means a policy, other than a variable life insurance policy, which provides that in addition to any minimum benefits guaranteed or based on the guaranteed factors in the policy, additional amounts are credited to the policy as determined by the insurance company based on then estimates of future experience. Additional amounts means interest credits which are higher than guaranteed in the policy and/or mortality charges which are lower than guaranteed in the policy and/or expense charges which are lower than guaranteed in the policy.
(r) Variable life insurance policy means a policy in which part of the policy provides benefits, the amount or duration of which varies according to the investment experience of any separate account or accounts.
(s) Variable universal life insurance policy means a variable life insurance policy which provides that in addition to any minimum benefits guaranteed or based on the guaranteed factors in the policy, additional amounts are credited to the policy as determined by the insurance company based on then estimates of future experience. Additional amounts means interest credits which are higher than guaranteed in the policy and/or mortality charges which are lower than guaranteed in the policy and/or expense charges which are lower than guaranteed in the policy.
(t) Varying premium term life insurance means a policy with an initial level premium rate guaranteed for up to 30 years ending at or before age 80, followed by increasing guaranteed premiums thereafter.
(u) 1980 CSO table with or without 10-year select mortality factors means that mortality table incorporated into the 1980 amendments to the NAIC Standard Valuation Law, referred to as "the commissioners 1980 standard ordinary mortality table with or without 10-year selection factors," as well as variations of such table adopted by the superintendent in Parts 47 and 57 of this Title.
