The New York Department of Financial Services (Department) recently revised New York Insurance Regulation 147 by adopting the revisions to Actuarial Guideline 38, which were outlined in our October 2012 Alert, NAIC Adopts Revisions to Actuarial Guideline 38.
These revisions require insurers to provide two certifications to the Department in any submission of a universal life insurance policy form having secondary guarantees. On March 8, 2013, the Department issued a Notice announcing the new filing procedures to be implemented by insurers submitting these types of forms for approval.
Summary of the New Procedures
- All universal life policy form filings must indicate whether the form has a secondary guarantee.
- If the form has a secondary guarantee, the policy design methodology must be identified.
- All certifications required based on policy design methodology must be included in the filing.
New form submissions that do not comply with requirements found in the Notice will be considered incomplete and may be rejected by the Department.
Important: Certifications must also be submitted as to previously approved universal life insurance policies with secondary guarantees if these policy forms are to be used after December 31, 2012.