Department of Financial Services

NOTICE OF ADOPTION

Principle-Based Reserving

I.D. No. DFS-43-19-00017-A

Filing No. 250

Filing Date: 2021-03-11

Effective Date: 2021-03-31

PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following action:

Action taken: Amendment of Part 103 (Regulation 213) of Title 11 NYCRR.

Statutory authority: Financial Services Law, sections 202, 302; Insurance Law, sections 301, 308, 4217 and 4517

Subject: Principle-Based Reserving.

Purpose: To prescribe minimum principle-based valuation standards.

Text or summary was published in the October 23, 2019 issue of the Register, I.D. No. DFS-43-19-00017-P.

Final rule as compared with last published rule: No changes.

Text of rule and any required statements and analyses may be obtained from: Amanda Fenwick, Department of Financial Services, One Commerce Plaza, Albany, New York 12257, (518) 474-7929, email: Amanda.Fenwick@dfs.ny.gov

Initial Review of Rule

As a rule that requires a RFA, RAFA or JIS, this rule will be initially reviewed in the calendar year 2024, which is no later than the 3rd year after the year in which this rule is being adopted.

Assessment of Public Comment

The New York State Department of Financial Services ("DFS") received public comments from an association of life insurers ("association").

Comment: The association requested that DFS apprise insurers on how to make a filing pursuant to section 103.5(c)(1) of the regulation, which allows insurers to apply the same maximum valuation interest rate applicable to the base contract to value the payment stream if the insurer obtains prior approval from the Superintendent of Financial Services.

Response: DFS will work with insurers who wish to make a filing pursuant to section 103.5(c)(1). DFS did not make any changes in response to this comment because this comment seeks advice rather than an amendment to the regulation.

Comment: The association requested that DFS commit to continue to work with its members on future amendments to relieve administrative burdens and improve upon consistency with the National Association of Insurance Commissioners' valuation manual.

Response: DFS is committed to continuing to work with the association and its members on future amendments. This comment does not address any specific changes to the regulation. Therefore, DFS did not make any changes in response to this comment.