New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter IV - Financial Condition Of Insurer and Reports to Superintendent
Subchapter B - Life Insurers
Part 99 - VALUATION OF ANNUITY, SINGLE PREMIUM LIFE INSURANCE, GUARANTEED INTEREST CONTRACT AND OTHER DEPOSIT RESERVES
Section 99.7 - Special considerations for valuing reserves for single premium policies
Current through Register Vol. 46, No. 39, September 25, 2024
(a) For single premium policies issued on or after 1982 (other than market value separate account policies providing for a cash surrender value adjusted for changes in interest rates prior to the date on which an unadjusted cash surrender value is guaranteed), the minimum reserve standard shall not be less than the greater of the reserve for death and endowment benefits or the greatest present value (discounting with interest only) of projected guaranteed cash surrender values if there are meaningful surrender charges (unadjusted by any market-value formula for any general account or book value separate account product).
(b) For single premium policies (other than market-value separate account policies providing for a cash surrender value adjusted for changes in prevailing interest rates prior to the date on which an unadjusted cash surrender value is guaranteed and other than policies valued on a year of issue basis with guarantee durations in excess of 10 years), for each year of issue separately, the valuation interest rate for the period specified in subdivision (c) of this section commencing on the valuation date shall be determined by the annuity valuation formula and thereafter the valuation interest rate shall be determined by the life insurance valuation formula. The weighting factors used in such formulas shall be the single premium policy weighting factors for policies providing guaranteed cash surrender values without adjustment and the annuity weighting factors (plan type B) for policies providing guaranteed cash surrender values at periodic dates with adjustment for changes in prevailing interest rates for surrender prior to such dates.
(c) The specified period referred to in subdivision (b) of this section shall be 10 years less the number of years elapsed since the year of issue.
(d) Single premium policies are also subject to Part 98 of this Title.
