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 99.9 - Special considerations for valuing reserves for separate account contracts and single premium policies
Current through Register Vol. 46, No. 39, September 25, 2024
(a) Some separate account contracts do not guarantee principal and interest but do have some guarantees as to mortality and expense. The assets are valued at market and the liabilities are approximately equal to the value of the assets with due recognition of the guarantees of mortality and expense. The reserves for such contracts and single premium policies are covered in part by Part 50 and Part 54 of this Title, unless otherwise defined in this section. Reserves for such a contract shall be calculated based on the annuity reserve valuation methods described in section 99.4 of this Part. However, for the variable portion of such contract future benefits shall be based on the account value projected at the valuation rate less contractual charges, including guaranteed mortality and expense charges. The present value shall be determined using plan type A, B or C provided the same valuation rate is used for projecting and discounting. The plan type for the fixed account portion of such contracts shall be the plan type that would be applicable if such portion were a fixed account contract.
(b) Some separate account contracts have guarantees as to principal and interest and have assets meeting the requirements for general account assets with assets valued in the same manner as for the general account. The reserves for the corresponding liabilities are governed in part by this section and sections 99.4, 99.5, 99.6 and 99.8 of this Part.
(c) In the case of modified guaranteed annuities, the reserve requirements are specified in section 99.4(a)(5) of this Part.
(d) In the case of variable annuities and other contracts involving certain guaranteed benefits similar to those offered with variable annuities, standards for the valuation of reserves are governed by section 83.3 of this Title.
