New York State

Insurance

Department

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LIFE BUREAU

FILING GUIDANCE NOTE

Kermitt J. Brooks    Acting Superintendent of Insurance 
25 Beaver Street  New York, N.Y. 10004

GUIDANCE DATE: 08/12/2009FOR IMMEDIATE RELEASE

Guaranteed Separate Account Products Utilizing One or More Non-Pooled Separate Accounts or Unallocated Group Annuity or Funding Agreement Products with an Initial Deposit in Excess of $50 million.

Guaranteed separate account products utilizing one or more non-pooled separate accounts or unallocated group annuity or funding agreement products with an initial deposit in excess of $50 million may not be filed under the Circular Letter No. 6 (2004) procedure without the Department's permission.

It has come to the Department's attention that certain innovative group annuity and funding agreement policy forms have been submitted under the certified filing process of Circular Letter No. 6 (2004). Because the issuance of such forms may be prejudicial to the interests of the insurer's policyholders in general, the Department has determined that the Circular Letter No. 6 (2004) certification process may not be appropriate for (1) guaranteed separate account products utilizing one or more non-pooled separate accounts, or (2) unallocated group annuity or funding agreement products with an initial deposit in excess of $50 million.

Such products must be submitted for prior approval under Section 3201(b)(1) or (6) of the Insurance Law, unless the Department has granted permission for the company to file under the Circular Letter No. 6 (2004) process. In addition, guaranteed separate account products utilizing one or more non-pooled separate accounts must be submitted on a one case basis so that the actual policy terms and identity of the contract or funding agreement holder are specified in the forms. Prior approval submissions will be given priority. Please note that pre-filings pursuant to Circular Letter No. 1 of 1964 may still be made for these products. Products that have already received an approval under Circular Letter No. 6 (2004) prior to the posting of this guidance are not affected.

Companies requesting permission to use the Circular Letter No. 6 (2004) certified filing process must first explain the features of the product(s) and resolve, to the Department's satisfaction, any concerns identified.


Policy Forms Subject to Section 4221(l) of the Insurance Law.

For some plans of life insurance, the minimum no forfeiture values cannot be determined by usual methods specified in Section 4221. In these instances, Section 4221 requires that the Superintendent make a determination that nonforfeiture values are substantially as favorable to policyholders and insureds as the minimum benefits otherwise required by Section 4221. In making such a determination, Section 4221(l) requires the Superintendent to be satisfied that the values provided are substantially as favorable to policyholders and insureds as the minimum benefits otherwise required by Section 4221, and that the benefits and the pattern of premiums of the plan are not such as to mislead prospective policyholders or insureds.

Since the Superintendent must make such determinations, life insurance policy forms for which the minimum nonforfeiture values are to be determined under Section 4421(l) may not be filed under the Circular Letter No.6 (2004) procedure without the Department's permission. Such products must be submitted for prior approval under Section 3201(b)(1) or (6) of the Insurance Law, unless the Department has granted permission to use the Circular Letter No. 6 certified filing process. Prior approval submissions will be given priority.

Companies requesting permission to use the Circular Letter No. 6 (2004) certified filing process must first explain, to the Department's satisfaction, how a product's nonforfeiture values are substantially as favorable to policyholders and insureds as the minimum benefits otherwise required by Section 4221 of the Insurance Law.

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