S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7535

                            I N  S E N A T E

                               May 9, 2016
                               ___________

Introduced  by  Sen.  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 the valuation of  life
  insurance policies and contracts

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph 1 of subsection (a) of section 4217 of the insur-
ance law, as amended by chapter 22 of the laws of 1994,  is  amended  to
read as follows:
  (1)  The  superintendent  shall  annually [value, or] cause EVERY LIFE
INSURANCE COMPANY DOING BUSINESS IN THIS STATE to [be valued,] VALUE the
reserve liabilities (hereinafter called reserves) for all ITS  outstand-
ing  insurance  policies  and contracts [of every life insurance company
doing business in this state], except that, in  the  case  of  an  alien
company, such valuation shall be limited to its United States business[,
and  may].  THE  SUPERINTENDENT  SHALL  certify  the  amount of any such
reserves, specifying the mortality table or tables,  rate  or  rates  of
interest  and  methods  (net  level premium method or other) used in the
calculation of such reserves, UNLESS THE SUPERINTENDENT DETERMINES  THAT
THE MEMORANDUM PREPARED PURSUANT TO PARAGRAPH THREE OF SUBSECTION (E) OF
THIS  SECTION  TO  SUPPORT THE ACTUARIAL OPINION OF RESERVES REQUIRED BY
PARAGRAPH ONE OF SUBSECTION (E) OF THIS SECTION FAILS TO MEET THE STAND-
ARDS PRESCRIBED BY REGULATION.    In  calculating  such  reserves,  [the
superintendent]  LIFE  INSURANCE  COMPANIES  may  use  group methods and
approximate averages for fractions of a year or otherwise.
  S 2. Paragraph 1 of subsection (e) of section 4217  of  the  insurance
law,  as  added by chapter 22 of the laws of 1994, is amended to read as
follows:
  (1) General. Every life insurance company doing business in this state
shall annually submit the opinion of a qualified actuary as  to  whether
the reserves and related actuarial items held in support of the policies
and contracts specified by the superintendent by regulation are computed
appropriately,  are  based  on  assumptions  which  satisfy  contractual
provisions, are consistent with prior reported amounts and  comply  with

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD15288-01-6

S. 7535                             2

applicable  laws of this state. The superintendent [by regulation] shall
define the specifics of this opinion and add any other items  deemed  to
be necessary to its scope SOLELY BY REGULATION.
  S 3. Subparagraph (C) of paragraph 4 of subsection (e) of section 4217
of  the  insurance  law,  as added by chapter 22 of the laws of 1994, is
amended to read as follows:
  (C) The opinion shall be based on standards adopted from time to  time
by the Actuarial Standards Board and on such additional standards as the
superintendent  may  by regulation prescribe.   THE SUPERINTENDENT SHALL
NOT PRESCRIBE ANY ASSUMPTIONS OR OTHER ADDITIONAL STANDARDS TO  BE  USED
BY   THE  QUALIFIED  ACTUARY  WHEN  FORMING  THE  OPINION  BEYOND  THOSE
PRESCRIBED BY REGULATION.
  S 4. Paragraph 4 of subsection (f) of section 4217  of  the  insurance
law,  as  added by chapter 22 of the laws of 1994, is amended to read as
follows:
  (4) [Without the specific approval of the  superintendent  subject  to
such  conditions  as  he may prescribe and as provided by regulation, an
insurer shall not] AN INSURER MAY aggregate the reserves referred to  in
[two  or  more  of paragraph] PARAGRAPHS one, two [or] AND three of this
subsection. [Such regulation may prescribe the  conditions  under  which
the  valuation  of  two  or more classes of business of insurance or the
valuation of all of its insurance business to which this section applies
may be combined.] THE SUPERINTENDENT MAY, SOLELY BY REGULATION,  REQUIRE
INSURERS  TO  SHOW  THE  RESULTS  OF  ASSET  ADEQUACY ANALYSIS AS TO THE
ADEQUACY OF RESERVES REFERRED TO IN PARAGRAPHS ONE,  TWO  AND  THREE  OF
THIS SUBSECTION SEPARATELY IN THE ACTUARIAL MEMORANDUM PREPARED PURSUANT
TO  PARAGRAPH  THREE  OF  SUBSECTION  (E)  OF  THIS SECTION, BUT MAY NOT
PROHIBIT INSURERS FROM AGGREGATING THE RESERVES  REFERRED  TO  IN  PARA-
GRAPHS ONE, TWO AND THREE OF THIS SUBSECTION FOR THE PURPOSES OF MEETING
THE  MINIMUM  STANDARDS  FOR  THE  VALUATION OF LIFE INSURANCE POLICIES,
ANNUITIES AND GUARANTEED INVESTMENT CONTRACTS, AND INDIVIDUAL AND  GROUP
ACCIDENT AND HEALTH INSURANCE POLICIES.
  S 5. This act shall take effect immediately.