STATE OF NEW YORK ________________________________________________________________________ 3633 2019-2020 Regular Sessions IN SENATE February 11, 2019 ___________ Introduced by Sens. BRESLIN, SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance AN ACT to amend the insurance law, in relation to principle based reserves The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 4217 of the insurance law is amended by adding a 2 new subsection (h) to read as follows: 3 (h) (1) This subsection shall apply only to individual and group life 4 insurance policies and annuity contracts issued on or after January 5 first, two thousand twenty. 6 (2) For purposes of this subsection, "valuation manual" means the 7 valuation manual adopted by the National Association of Insurance 8 Commissioners on December second, two thousand twelve, as subsequently 9 amended on June eighth, two thousand fifteen, November twenty-second, 10 two thousand fifteen, April sixth, two thousand sixteen, and August 11 twenty-ninth, two thousand sixteen. 12 (3) Notwithstanding subsection (c) of this section and section four 13 thousand two hundred eighteen of this article, the minimum reserve 14 requirements and the minimum standard for the valuation of all individ- 15 ual and group life insurance policies and annuity contracts issued on or 16 after January first, two thousand twenty shall be the superintendent's 17 principle based valuation method defined in paragraph four of this 18 subsection and all regulations promulgated thereunder. Nothing 19 contained within this subsection shall lessen the superintendent's 20 powers under any other provisions of this chapter or the financial 21 services law, including, without limitation, the superintendent's powers 22 and obligations to ensure the solvency and fiscal health of insurers and 23 to protect policyholders. 24 (4) (A) The superintendent's principle based valuation method shall be 25 the reserve standards, valuation methods, assumptions, and related EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD09799-01-9

S. 3633 2 1 requirements set forth in regulations to be promulgated by the super- 2 intendent. 3 (B) Subject to subparagraphs (C) and (D) of this paragraph, the regu- 4 lations establishing the superintendent's principle based valuation 5 method shall utilize the reserve standards, valuation methods, and 6 related requirements in the valuation manual. 7 (C) The regulations establishing the superintendent's principle based 8 valuation method may deviate from any of the reserve standards, valu- 9 ation methods, assumptions, and related requirements in the valuation 10 manual if the superintendent determines that an alternative reserve 11 standard, valuation method, assumption, and/or related requirement is 12 reasonably necessary to protect policyholders or the people of this 13 state. 14 (D) The regulations establishing the superintendent's principle based 15 valuation method may deviate from the reserve standards, valuation meth- 16 ods, and related requirements in the valuation manual if the superinten- 17 dent determines that an amendment to the valuation manual adopted by the 18 National Association of Insurance Commissioners after August twenty- 19 ninth, two thousand sixteen, is reasonably necessary to protect policy- 20 holders or the people of this state and should be incorporated into the 21 superintendent's principle based valuation method. 22 § 2. This act shall take effect immediately.

Relates to principle based reserves

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