New York State Change Could Cut Life and Annuity Costs
December 14, 2018 by Allison Bell
New York state says it will let its life and annuity issuers move toward a new, possibly more efficient approach to building the asset pools needed to meet obligations — principles-based reserving.
Gov. Andrew Cuomo last week signed S. 08978-A/A. 11116-A, a principles-based reserving bill for the state’s life and annuity issuers.
The New York State Department of Financial Services began rolling out the implementation regulations this week.
The new law will let an issuer rely mainly on the judgment of a qualified actuary, using modern risk measurement and risk forecasting methods, to determine how much the issuer needs to keep in the reserves supporting an individual life insurance policy, a group life policy or an annuity issued after a specified date.
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