Maximum Reserve Valuation and Maximum Life Policy Nonforfeiture Interest Rates

The maximum reserve valuation and nonforfeiture interest rates, prescribed by Sections 4217 and 4221(k) of the New York Insurance Law, are specified in "Table A through Table H Rates" noted below. Such rates vary from year to year based on Moody’s corporate bond yield averages for 12 and 36 months ending on June 30, and weighting factors prescribed by Section 4217. The Moody’s averages are provided for years 1981 to present in the attached Appendix.

Notice Regarding Payout Annuity Valuation Interest Rate Changes

Pursuant to Section 4217(g) of the New York State Insurance Law, the maximum valuation interest rates for payout annuities with premium determination dates on or after January 1, 2019 are prescribed in Section 103.5 of 11 NYCRR 103 (Insurance Regulation No. 213).

Payout Annuity Maximum Valuation Interest Rates for Premiums Received after 2019:

For the policies, contracts, certificates, and benefits with premium determination dates on or after January 1, 2020, the maximum valuation interest rates prescribed by Section 103.5 of Regulation 213 are specified in the following file: 2020 Payout Annuity MVIR (XLSX)

Payout Annuity Maximum Valuation Interest Rates for Premiums Received during 2019:

For the policies, contracts, certificates, and benefits with premium determination dates on or after January 1, 2019 and prior to January 1, 2020, the maximum valuation interest rates prescribed in Section 103.5(c)(2) of Regulation 213 and Section 103.5(c)(3) of Regulation 213 are specified in the following file: 2019 Payout Annuity MVIR (XLSX)

Notice Regarding Maximum Valuation Interest Rates for Jumbo Contracts:

The Department intends to amend Section 103.5(c)(3)(i)(b)(1) of Regulation 213 such that the difference between the valuation interest rates for jumbo contracts prescribed by this subclause and the daily statutory maximum valuation interest rates prescribed by VM-22 of the NAIC’s Valuation Manual shall equal the difference between the valuation interest rates for non-jumbo contracts prescribed by Section 103.5(c)(3)(i)(a) of Regulation 213 and the quarterly statutory maximum valuation interest rates prescribed by VM-22 of the NAIC’s Valuation Manual for each respective quarter and valuation rate bucket. Note that the maximum daily valuation rates prescribed by Section 103.5(c)(3)(i)(b)(2) of Regulation 213 are expected to remain unchanged.

Clarification on Fixed Annuity Reserves Interest Rates

We note that there has been some concern over the appropriate maximum valuation interest rate for flexible premium deferred annuities (FPDA). Section 4217(c)(4)(D)(iii) of the New York Insurance Law does not allow the use of the additional .05 weighting factor for annuities that guarantee interest rates on future considerations received more than twelve months beyond the valuation date. Accordingly, for flexible premium deferred annuities the weighting factors shown in Section 4217(c)(4)(D)(iii)(I) or 4217(c)(4)(D)(iii)(II) should be used. For convenience, maximum valuation interest rates for such FPDAs are shown in Table D (issue year basis) and Table G (change in fund basis). The rates shown in Table E and Table H are not appropriate for FPDAs.