S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2586
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 20, 2017
                                ___________
 
 Introduced by M. of A. BRINDISI -- read once and referred to the Commit-
   tee 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.
   §  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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01966-01-7

 A. 2586                             2
 
 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
 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.
   § 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.
   § 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.
   § 5. This act shall take effect immediately.