BILL NUMBER:  S4767A

 TITLE OF BILL :  An act to amend the insurance law, in relation to
approval of certain insurance and annuity policy forms

 PURPOSE : This bill would amend the insurance law to permit the
Superintendent of Insurance to waive the re-approval of an amended
policy form when the amendment is due to a revision to a separate
account, so long as the revision has already been approved by the
Department as part of the separate account plan of operation. Under
those circumstances, such amended policy form would need to be filed
on an informational basis with the New York State Insurance
Department, within sixty days after approval of the amended separate
account plan. This amendment would also give the Superintendent the
discretion to waive other approvals of amended policy forms.

 SUMMARY OF PROVISIONS : This bill establishes a new paragraph (7) to

§3201(b) of the insurance law to authorize the Superintendent of
Insurance to waive the approval of an amended policy form, so long as
the amendment had already been re-approved by the Insurance Department
as part of a separate account plan of operation and so long as the
amended form is filed with the Insurance Department on an
informational basis, within sixty days after the revised separate
account plan is approved. Current law is being interpreted so as not
to allow the Department any discretion in waiving the re-approval of
              

these types of amended policy forms. This amendment would further give
the Superintendent the discretion to waive the approval of any type of
amendment to a policy form. Current law would not seem to allow the
Superintendent this discretion in this regard.

 JUSTIFICATION : Interpretation of the current law has led to the
conclusion by some that the Insurance Department has little discretion
when it comes to determining whether or not an amendment to a
previously-approved policy form rises to the level of needing
re-approval by the Insurance Department. This has become an impediment
when insurers need to make simple revisions to policies or contracts,
particularly variable life and annuity contracts that contain a
separate account. Separate accounts are mutual fund-type options that
are offered as an investment option under certain variable insurance
products. These accounts are administered by another company (such as
Fidelity or Magellan), which will routinely make fund revisions (such
as, a simple renaming of a fund). Revisions to a separate account
under a variable insurance contract are already required to be
reviewed and reapproved pursuant to the separate account plan of
operation required pursuant to §4240(e) of the Insurance Law.
Currently, the Insurance Department also requires that the amended
policy form itself must also be reviewed and approved, in addition to
the approval of the amended separate account plan of operation. This
dual-track, re-approval process unnecessarily slows down the ability
of insurers to turn around amended forms to the insurance marketplace.
This revision to the law would allow the Superintendent the discretion
to waive approvals of amended policy forms, specifically under the
circumstances described above, but also more generally, if the
Department determines any amendment is inconsequential enough so as to
not rise to the level of needing to be re-approved.

 PRIOR LEGISLATIVE HISTORY : None.

 FISCAL IMPLICATIONS : No known costs to the State are associated with
this bill.

 EFFECTIVE DATE : This act shall take effect sixty days after it shall
have become a law.

                                BILL NUMBER:S4767B

TITLE OF BILL:
An act to amend the insurance law, in relation to approval of certain
insurance and annuity policy forms

PURPOSE:
This bill would amend the insurance law to permit the Superintendent of
Insurance to waive the re-approval of an amended policy form when the
amendment is due to a revision to a separate account, so long as the
revision has already been approved by the Department as part of the
separate account plan of operation. Under those circumstances, such
amended policy form would need to be filed on an informational basis
with the.New York State Insurance Department, within sixty days after
approval of the amended separate account plan. This amendment would also
give the Superintendent the discretion to waive other approvals of
amended policy forms.

SUMMARY OF PROVISIONS:
This bill establishes a new paragraph (7) to §3201(b) of the insurance
law to authorize the Superintendent of Insurance to waive the approval
of an amended policy form, so long as the amendment had already been
re-approved by the Insurance Department as part of a separate account
plan of operation and so long as the amended form is filed with the
Insurance Department on an informational basis, within sixty days after
the revised separate account plan is approved. Current law is being
              

interpreted so as not to allow the Department any discretion in waiving
the re-approval of these types of amended policy forms. This amendment
would further give the Superintendent the discretion to waive the
approval of a class or classes of policy forms and only pursuant to
written published guidance. Current law would not seem to allow the
Superintendent this discretion in this regard.

JUSTIFICATION:
Interpretation of the current law has led to the conclusion by some·
that the Insurance Department has little discretion when it comes to
determining whether or not an amendment to a previously-approved policy
form rises to the level of needing re-approval by the Insurance Depart-
ment. This has become an impediment when insurers need to make simple
revisions to policies or contracts, particularly variable life and annu-
ity contracts that contain a separate account.· Separate accounts are
mutual fund-type options that are offered as an investment option under
certain variable insurance products. These accounts are administered by
another company (such as Fidelity or Magellan), which will routinely
make fund revisions (such as, a simple renaming of a fund). Revisions to
a separate account under a variable insurance contract are already
required to be reviewed and reapproved pursuant to the separate account
plan of operation required pursuant to §4240(e) of the Insurance Law.
Currently, the Insurance Department also requires that the amended poli-
cy form itself must also be reviewed and approved, in addition to the
approval of the amended separate account plan of operation. This dual-

track, re-approval process unnecessarily slows down the ability of
insurers to turn around amended forms to the insurance marketplace.
This revision to the law would allow the Superintendent the discretion
to waive approvals of amended policy forms, specifically under the
circumstances described above, but also more generally, if the Depart-
ment determines any amendment is inconsequential enough so as to not
rise to the level of needing to be re-approved.

PRIOR LEGISLATIVE HISTORY:
None.

FISCAL IMPLICATIONS:
No known costs to the State are associated with this bill.

EFFECTIVE DATE:
This act shall take effect sixty days after it shall have become a law.