.

New York State Seal

STATE OF NEW YORK
INSURANCE DEPARTMENT

160 WEST BROADWAY
NEW YORK, NEW YORK 10013

                                                                                                 

Circular Letter No. 10(1995)
August 1, 1995
TO: All Authorized Life Insurance Companies, Accredited Life Reinsurers, Fraternal Benefit Societies and Charitable Annuity Societies
Re: Maximum Reserve Valuation and MaximumLife Policy Nonforfeiture Interest Rates
   Attached hereto is an outline providing maximum reserve valuation and
   maximum life policy nonforfeiture interest rates for new issues, new
   purchases or changes in fund (as defined) for years 1982 through 1995
   (and other years where shown), under Sections 4217, 4218 and 4221(k) of
   the New York Insurance Law, as amended in 1982, 1983, 1985, 1986, 1987,
   1988, 1990, and 1994.

   Previous versions of this Circular Letter distinguished between
   companies submitting an acceptable Actuarial Opinion and Memorandum
   (AOM) and companies not doing so. This distinction was a consequence of
   Section 4217(c)(4)(B)(vi) of the Insurance Law. Section 4217 of the
   Insurance Law was amended in 1994. The distinction between maximum
   valuation interest rates with and without an acceptable AOM has been
   eliminated. This Circular Letter reflects such changes and no longer
   shows separate rates for companies submitting an acceptable AOM and for
   Companies not doing so.

   Regulation 126, in effect on December 31, 1993, contained provisions
   regarding the valuation of annuities, GICs, deposit funds, structured
   settlement annuities and single premium life policies. Such provisions
   were not incorporated into Regulation 126 promulgated December 1, 1994.
   It is expected that these provisions regarding annuities, GICs, deposit
   funds and structured settlement annuities will be incorporated in New
   York Regulation 150 by December 31, 1995. It is expected that Regulation
   147 will be amended to incorporate provisions regarding single premium
   life policies.

   This Circular Letter is to be used for informational purposes, as an
   aid in complying with the law.

   Should any person have any question or comment in regard to this
   matter, please contact Mr. Stuart Zamlong or Mr. John Karwatowski of the
   Actuarial Valuation Section of the Life and Health Bureau at (518)
   474-6605.

      
                                    PAGE 1

MAXIMUM RESERVE VALUATION AND MAXIMUM LIFE POLICYNONFORFEITURE INTEREST RATES
                       UNDER SECTIONS 4217, 4218 AND 4221(k) OF THE NEW YORKINSURANCE LAW
   The maximum valuation and nonforfeiture interest rates, prescribed by
   Sections 4217 and 4221(k) of the New York Insurance Law for future
   years, will vary from year to year depending on Moody's corporate bond
   yield averages.

      The maximum valuation interest rates for issues, purchases and
   changes-in-fund of years 1982 through 1995 (and other years where shown)
   are outlined below. The maximum valuation and nonforfeiture interest
   rates for Ordinary Life Insurance are shown in Category A of page 2,
   except for Single Premium Life Insurance (the kind referred to in
   Section 4217(c)(4)(B)(vi) as amended by Chapter 302 of the laws of 1987)
   the maximum valuation interest rates for which are shown in Category B
   on page 3.

                                    PAGE 2

      A. ORDINARY LIFE INSURANCE (Except as covered in B on page 3)

                                                                                        Maximum
                                                        ***Maximum Reserve           NonForfeiture
                                                        Valuation Interest          Interest Rate,
  *Issue Year  **Guarantee Duration                           Rate                    1980 CSO#

   1979- 1989   See Prior Circular Letter No. 8 (1990)

   1991         10 Years or less                               6.00%                     7.50%
                More than 10 years, up to 20                   6.00                      7.50
                More than 20 years                             5.50                      7.00

   1992         10 Years or less                               6.00%                     7.50%
                More than 10 years, up to 20                   6.00                      7.50
                More than 20 years                             5.50                      7.00

   1993         10 Years or less                               6.00%                     7.50%
                More than 10 years, up to 20                   6.00                      7.50
                More than 20 years                             5.00           ##         6.25

   1994         10 Years or less                               5.50%          ##         7.00%
                More than 10 years, up to 20                   5.25           ##         6.50
                More than 20 years                             5.00           ##         6.25

   1995         10 Years or less                               5.50%                     7.00%
                More than 10 years, up to 20                   5.25                      6.50
                More than 20 years                             4.50           ##         5.75

   1996         10 Years or less                               5.50%                     7.00%
                More than 10 years, up to 20                   5.25                      6.50
                More than 20 years                             4.50                      5.75

      * See the paragraph at the top of page 11.

      ** The guarantee duration is the maximum number of years the life
   insurance can remain inforce on a basis guaranteed in the policy.

      *** The maximum reserve valuation interest rate will be the lesser of
   the rate as determined from the above table and the rate actually used
   in determining cash values. This applies to basic reserves under Section
   4217, not to the minimum reserve test under Section 4218.

      # Applicable on or after the operative date elected under Section
   4221(k)(12). (See the top paragraph on page 10). These rates do not
   apply to policies issued pursuant to Section 4221(n)(1).

      ## In accordance with Section 4221(k)(9)(B)(i) of the New York
   Insurance Law, the nonforfeiture interest rate used for a particular
   issue year may not exceed the higher of the applicable maximum
   nonforfeiture interest rate for such particular issue year and that for
   the immediately preceding issue year (e.g. 1994 issues may use the rate
   for 1993, 1995 issues may use the rate for 1994).

                                    PAGE 3

      B. Single Premium Life Insurance of the kind referred to in Section
   4217(c)(4)(B)(vi) of the New York Insurance Laws (as amended by Chapter
   302 of the laws of 1987).#

                                                                       *Maximum
                                                                   Reserve Valuation
                                                                     Interest Rate
                                                            Issue Year      Change-In-Fund
   Issue Year     Guarantee Duration**                        Basis              Basis

   1982- 1990     See Prior Circular Letter No. 8 (1990)

   1991           10 Years or less                            6.75%              7.00%
                  More than 10 yrs, up to 20                   6.25              6.75
                  More than 20 years                           5.50              6.00

   1992           10 Years or less                            6.25%              6.50%
                  More than 10 yrs, up to 20                   6.00              6.25
                  More than 20 years                           5.25              5.75

   1993           10 Years or less                            5.75%              6.00%
                  More than 10 yrs, up to 20                   5.50              5.75
                  More than 20 years                           5.00              5.25

   1994           10 Years or less                            5.50%              5.75%
                  More than 10 yrs, up to 20                   5.25              5.50
                  More than 20 years                           4.75              5.00

   1995           10 Years or less                            6.00%              6.25%
                  More than 10 yrs, up to 20                   5.50              6.00
                  More than 20 years                           5.00              5.50

      * See page 11.

      ** The guarantee duration is the number of years for which interest
   rates provided in, or declared pursuant to, a single premium life
   insurance policy of the kind referred to in Section 4217(c)(4)(B)(vi)
   are guaranteed to exceed the greater of (1) 6% and (2) the calendar year
   statutory valuation interest rate for life insurance policies (other
   than such single premium policy) with guarantee duration's in excess of
   20 years.

      # Said Chapter 302 amendment became effective, on a mandatory basis,
   on January 1, 1989. Any company could have filed a written notice of
   prior election.

                                    PAGE 4

      C. Single Premium Immediate Annuities and annuity benefits arising
   from life insurance policies and annuity and guaranteed interest
   contracts with cash settlement options.

   Issued of or
      Purchases       Maximum Reserve Valuation
       During               Interest Rate

       1982                     13.25%
       1983                     11.25
       1984                     11.25
       1985                     11.00
       1986                      9.25
       1987                      8.00
       1988                      8.75
       1989                      8.75
       1990                      8.25
       1991                      8.25
       1992                      7.75
       1993                      7.00
       1994                      6.50
       1995                      7.25

                                    PAGE 5

      D. Other Annuities and Guaranteed Interest Contracts, with cash
   settlement options and with interest rate guarantees on future
   considerations, valued on the "Issue Year" basis.

                                                                 Maximum Reserve
                                                             Valuation Interest Rate
                                                           *Plan Type

     Issue
     Year        Guarantee Duration#                       A         B         C

   1982- 1990    See Prior Circular Letter No. 8 (1990)

   1991          5 Years or less                           8.25%     7.00%     6.25%
                 More than 5 yrs, up to 10                 8.00      7.00      6.25
                 More than 10 yrs, up to 20                7.00      6.25      5.75
                 More than 20 years                        5.75      5.25      5.25

   1992          5 Years or less                           7.75%     6.50%     6.00%
                 More than 5 yrs, up to 10                 7.50      6.50      6.00
                 More than 10 yrs, up to 20                6.75      6.00      5.75
                 More than 20 years                        5.75      5.00      5.00

   1993          5 Years or less                           7.00%     6.00%     5.50%
                 More than 5 yrs, up to 10                 6.75      6.00      5.50
                 More than 10 yrs, up to 20                6.25      5.50      5.25
                 More than 20 years                        5.25      4.75      4.75

   1994          5 Years or less                           6.50%     5.75%     5.25%
                 More than 5 yrs, up to 10                 6.50      5.75      5.25
                 More than 10 yrs, up to 20                6.00      5.25      5.00
                 More than 20 years                        5.00      4.50      4.50

   1995          5 Years or less                           7.25%     6.25%     5.75%
                 More than 5 yrs, up to 10                 7.00      6.25      5.75
                 More than 10 yrs, up to 20                6.25      5.50      5.25
                 More than 20 years                        5.25      4.75      4.75

      # See definition of guarantee duration for Categories D, E, G and H
   on page 10.

      * See descriptions of plan types on page 10.

                                    PAGE 6

      E. Other Annuities and Guaranteed Interest Contracts, with cash
   settlement options but without interest rate guarantees on future
   considerations, valued on the "Issue Year" basis.

                                                                 Maximum Reserve
                                                             Valuation Interest Rate
                                                                   *Plan Type

   Issue Year    Guarantee Duration#                       A         B         C

   1982- 1990    See Prior Circular Letter No. 8 (1990)

   1991          5 Years or less                           8.75%     7.25%     6.75%
                 More than 5 yrs, up to 10                 8.25      7.25      6.75
                 More than 10 yrs, up to 20                7.50      6.50      6.25
                 More than 20 years                        6.25      5.50      5.50

   1992          5 Years or less                           8.00%     6.75%     6.25%
                 More than 5 yrs, up to 10                 7.75      6.75      6.25
                 More than 10 yrs, up to 20                7.00      6.25      6.00
                 More than 20 years                        6.00      5.25      5.25

   1993          5 Years or less                           7.25%     6.25%     5.75%
                 More than 5 yrs, up to 10                 7.00      6.25      5.75
                 More than 10 yrs, up to 20                6.50      5.75      5.50
                 More than 20 years                        5.50      5.00      5.00

   1994          5 Years or less                           6.75%     6.00%     5.50%
                 More than 5 yrs, up to 10                 6.50      6.00      5.50
                 More than 10 yrs, up to 20                6.25      5.50      5.25
                 More than 20 years                        5.25      4.75      4.75

   1995          5 Years or less                           7.50%     6.50%     6.00%
                 More than 5 yrs, up to 10                 7.25      6.50      6.00
                 More than 10 yrs, up to 20                6.50      5.75      5.50
                 More than 20 years                        5.50      5.00      5.00

      # See definition of guarantee duration for Categories D, E, G and H
   on page 10.

      * See descriptions of plan types on page 10.

                                    PAGE 7

      F. Other Annuities and Guaranteed Interest Contracts, without cash
   settlement options, valued on the "Issue Year" basis.

                                                                Maximum Reserve
                                                               Valuation Interest
                                                                      Rate

   Issue Year     Guarantee Duration**                            *Plan Type A

   1982- 1990     See Prior Circular Letter No. 8 (1990)

   1991           5 Years or less                                    8.25%
                  More than 5 yrs, up to 10                           8.00
                  More than 10 yrs, up to 20                          7.25
                  More than 20 years                                  6.00

   1992           5 Years or less                                    7.75%
                  More than 5 yrs, up to 10                           7.50
                  More than 10 yrs, up to 20                          6.75
                  More than 20 years                                  5.75

   1993           5 Years or less                                    7.00%
                  More than 5 yrs, up to 10                           6.75
                  More than 10 yrs, up to 20                          6.25
                  More than 20 years                                  5.25

   1994           5 Years or less                                    6.50%
                  More than 5 yrs, up to 10                           6.50
                  More than 10 yrs, up to 20                          6.00
                  More than 20 years                                  5.00

   1995           5 Years or less                                    7.25%
                  More than 5 yrs, up to 10                           7.00
                  More than 10 yrs, up to 20                          6.50
                  More than 20 years                                  5.50

      * See descriptions of plan types on page 10.

      ** The guarantee duration for other annuities and guaranteed interest
   contracts without cash settlement options, is the number of years from
   the date of issue or date of purchase to the date annuity benefits are
   scheduled to commence.

                                    PAGE 8

      G. Other Annuities and Guaranteed Interest Contracts, with cash
   settlement options and with interest rate guarantees on future
   considerations, valued on the "Change-in-Fund" basis.

                                                                 Maximum Reserve
                                                             Valuation Interest Rate
                                                           *Plan Type

   Change in
   Fund During
   Year          Guarantee Duration#                       A         B         C

   1982- 1990    See Prior Circular Letter No. 8 (1990)

   1991          5 Years or less                           9.25%     8.75%     6.75%
                 More than 5 yrs, up to 10                 9.00      8.75      6.75
                 More than 10 yrs, up to 20                8.25      8.00      6.25
                 More than 20 years                        7.00      7.00      5.75

   1992          5 Years or less                           8.50%     8.00%     6.25%
                 More than 5 yrs, up to 10                 8.25      8.00      6.25
                 More than 10 yrs, up to 20                7.75      7.50      6.00
                 More than 20 years                        6.50      6.50      5.25

   1993          5 Years or less                           7.75%     7.25%     5.75%
                 More than 5 yrs, up to 10                 7.50      7.25      5.75
                 More than 10 yrs, up to 20                7.00      6.75      5.50
                 More than 20 years                        6.00      6.00      5.00

   1994          5 Years or less                           7.25%     6.75%     5.50%
                 More than 5 yrs, up to 10                 7.00      6.75      5.50
                 More than 10 yrs, up to 20                6.50      6.50      5.25
                 More than 20 years                        5.75      5.75      4.75

   1995          5 Years or less                           8.25%     7.50%     6.00%
                 More than 5 yrs, up to 10                 8.00      7.50      6.00
                 More than 10 yrs, up to 20                7.25      7.00      5.75
                 More than 20 years                        6.25      6.25      5.25

      # See definition of guarantee duration for Categories D, E, G and H
   on page 10.

      * See descriptions of plan types on page 10.

                                    PAGE 9

      H. Other Annuities and Guaranteed Interest Contracts, with cash
   settlement options and without interest rate guarantees on future
   considerations, valued on the "Change-in-Fund" basis.

                                                                 Maximum Reserve
                                                             Valuation Interest Rate
                                                           *Plan Type

   Change in
   Fund During
   Year          Guarantee Duration#                       A         B         C

   1982- 1990    See Prior Circular Letter No. 8 (1990)

   1991          5 Years or less                           9.75%     9.00%     7.00%
                 More than 5 yrs, up to 10                 9.25      9.00      7.00
                 More than 10 yrs, up to 20                8.75      8.25      6.75
                 More than 20 years                        7.25      7.25      6.00

   1992          5 Years or less                           9.00%     8.25%     6.50
                 More than 5 yrs, up to 10                 8.50      8.25      6.50
                 More than 10 yrs, up to 20                8.00      7.75      6.25
                 More than 20 years                        6.75      6.75      5.75

   1993          5 Years or less                           8.25%     7.50%     6.00%
                 More than 5 yrs, up to 10                 7.75      7.50      6.00
                 More than 10 yrs, up to 20                7.25      7.00      5.75
                 More than 20 years                        6.25      6.25      5.25

   1994          5 Years or less                           7.50%     7.00%     5.75%
                 More than 5 yrs, up to 10                 7.25      7.00      5.75
                 More than 10 yrs, up to 20                6.75      6.50      5.50
                 More than 20 years                        6.00      6.00      5.00

   1995          5 Years or less                           8.50%     8.00%     6.25%
                 More than 5 yrs, up to 10                 8.25      8.00      6.25
                 More than 10 yrs, up to 20                7.50      7.25      6.00
                 More than 20 years                        6.50      6.50      5.50

      # See definition of guarantee duration for Categories D, E, G and H
   on page 10.

      * See descriptions of plan types on page 10.

                                   PAGE 10

      Said Section 4221(k)(12) was amended by Chapter 81 of the Laws of
   1983 to permit a company to elect to comply with the new provisions of
   Section 4221 on a plan-by-plan basis, with the proviso that the entire
   portfolio must be converted to the new provisions on or before January 1
   of the third calendar year following the calendar year of compliance for
   the first plan so converted, but not, in any event, later than January
   1, 1989.

      Plan types, as used in the above tables, are defined as follows:

      Plan Type A: The policyholder may withdraw funds only (1) with an
   adjustment to reflect changes in interest rates or asset values since
   receipt of the funds by the insurance company, or (2) without such
   adjustment but in installments over five years or more, or (3) as an
   immediate life annuity.

      Plan Type B: The policyholder may not withdraw funds before the
   expiration of the interest rate guarantee or, if withdrawals are
   permitted, before the expiration of such guarantee, may withdraw funds
   only (1) with an adjustment to reflect changes in interest rates or
   asset values since receipt of the funds by the insurance company, or (2)
   without such adjustment but in installments over five years or more. At
   the end of the interest rate guarantee, funds may be withdrawn without
   such adjustment in a single sum or in installments over less than five
   years.

      Plan Type C: The policyholder may withdraw funds before the
   expiration of the interest rate guarantee in a single sum or
   installments over less than five years either (1) without adjustment to
   reflect changes in interest rates or asset values since receipt of the
   funds by the insurance company, or (2) subject only to a fixed surrender
   charge stipulated in the contract as a percentage of the fund.

      (The most popular plan type, in the group annuity area, for current
   issues, is plan type B; while the most popular plan type, in the
   individual annuity area, for current issues, is plan type C.)

      The guarantee duration, for other annuities and guaranteed interest
   contracts with cash settlement options, generally is the number of years
   for which the contract guarantees interest rates in excess of the
   calendar year statutory valuation interest rate for life insurance
   policies (covered in A on page 2) with a guarantee duration of more than
   twenty years (See D, E, G and H herein).

      The guarantee duration, for other annuities and guaranteed interest
   contracts without cash settlement options, is the number of years from
   the date of issue or date of purchase to the date annuity benefits are
   scheduled to commence.

      Other annuities and guaranteed interest contracts, without cash
   settlement options, may be valued only on an "Issue Year" basis.

      For structured settlement annuities with lump sum payments, see
   Section 95.12 of Regulation 126 in effect on December 31, 1993. As
   stated in Mr. Callahan's December 12, 1994 distribution letter for
   Regulation 126, it is expected that a final regulation will be effective
   by December 31, 1995, based on proposed Regulation 150, distributed by
   Mr. Callahan on November 16, 1994.

      The maximum reserve valuation interest rates, for annuities and
   guaranteed interest contracts and for single premium life insurance
   policies of the kind referred to in Section 4217(c)(4)(B)(vi), are based
   on Moody's Corporate Bond Yield Averages for a one or three year period
   ending in June of the year of issue, purchase, or change in fund.
   Consequently, we are not able to compute such rates applicable to 1996
   at this time.

      The attached Appendix describes the method of calculating the maximum
   reserve valuation interest rates, in accordance with the specifications
   of Section 4217 of the New York Insurance Law, as amended.

                                   PAGE 11

      Section 4217, as amended by Chapter 749 of the Laws of 1983, permits
   the dynamic interest rates (under the 1982 amendments) to be used for
   issues of January 1, 1982 and later, independent of a company's election
   or non-election under Section 4221(k)(12). Thus, the new dynamic
   interest rates may be used either with 1958 CSO issues of January 1,
   1982 through December 31, 1988 or with 1980 CSO issues of January 1,
   1982 and later, for valuation purposes.

      The reserve for a Single Premium Life Insurance policy, of the kind
   referred to in Section 4217(c)(4)(B)(vi) of the New York Insurance Law,
   must not be less than its cash value. See Section 95.14 of Regulation
   126 in effect on December 31, 1993. It is expected that Regulation 147
   will be amended to incorporate provisions regarding single premium life
   policies.

                                   APPENDIX

      The maximum reserve valuation interest rates are based on reference
   interest rates, which are averages of corporate bond earnings published
   by Moody's Investors Service, Inc., and weighting factors prescribed by
   Section 4217.

      The weighting factors do not vary from year to year. None of the
   weighting factors given in Table 1 below will change unless Section 4217
   is revised by new legislation. The following formulas are used to
   compute the maximum reserve valuation interest rates:

      I = 3.00% + W(R1- 3.00)% + W/2(R2 - 9.00)%, (Formula 1, called "Life
          Insurance Formula")

   or

      1 = 3.00% + W(R- 3.00)%, (Formula 2, called "Annuity Formula")

    Where:
    I =     Maximum calendar year statutory valuation interest rate, rounded to the nearer 1/4%.
    R =     Reference interest rate, derived from Moody's corporate bond monthly yield averages, rounded to the nearer basis
            point (.01 of 1%).
    R1 =    Lesser of R and 9.00%.
    R2 =    Greater of R and 9.00%.
    W =     Weighting factor.

      The third term of Formula 1 is dropped whenever the reference
   interest rate falls below 9.00%. The weighting factors vary by type of
   benefit, guarantee duration, and valuation basis (i.e. `issue year'
   basis or `change-in-fund' basis). An asterisk (*), where shown with the
   weighting factor in Table 1, indicates that Formula 2 may optionally be
   used with a given factor if an acceptable actuarial opinion and
   memorandum are provided, as required by Section 4217(c)(4)(B)(vi).

   TABLE 1

    Benefit Category       Guarantee Duration   Valuation Basis      Reference Interest
    (in this Circular      (Where duration t,                               Rate           Weighting
          Letter)            in years, is)                         (Column from Table 2)   Factor

            A             = or < 10             Issue Year                  (3)            .50
                          > 10, = or <20                                                   .45
                          > 20                                                             .35

            B             = or < 10             Issue Year                  (1)            .55*
                          > 10, = or < 20       Issue Year                  (3)            .50
                          > 20                  Issue Year                  (3)            .40

            B             = or < 10             Change-in-Fund              (1)            .60*
                          > 10, = or < 20       Change-in-Fund              (1)            .55*
                          > 20                  Change-in-Fund              (1)            .45*

            C             Not Applicable        Issue or Purchase           (1)
                                                Year                                       .80*

  Benefit Category       Guarantee       Valuation   Reference Interest
 (in this Circular       Duration          Basis            Rate               Weighting
       Letter)        (Where duration                (Column from Table         Factor
                     t, in years, is)                        2)
                                                                            Varies By Plan

                                                                                 Type
                                                                              A      B      C
         D           = or < 5           Issue       (1)                    .80*   .60*   .50*
                     > 5, = or < 10     Year        (1)                    .75*    .60   .50*
                     > 10, = or < 20                (3)                     .65    .50    .45
                     < 20                           (3)                     .45    .35    .35

         E           = or < 5           Issue       (1)                    .85*   .65*   .55*
                     > 5, = or < 10     Year        (1)                    .80*   .65*   .55*
                     > 10, = or < 20                (3)                     .70    .55    .50
                     > 20                           (3)                     .50    .40    .40

         F           = or < 5           Issue       (1)                    .80*
                     > 5, = or < 10     Year        (1)                    .75*
                     > 10, = or < 20                (1)                    .65*
                     > 20                           (1)                    .45*

         G           = or < 5           Change      (1)                    .95*   .85*   .55*
                     > 5, = or < 10     In          (1)                    .90*   .85*   .55*
                     > 10, = or < 20    Fund        (1)                    .80*   .75*   .50*
                     > 20                           (1)                    .60*   .60*   .40*

         H           = or < 5           Change      (1)                   1.00*   .90*   .60*
                     > 5, = or < 10     In          (1)                    .95*   .90*   .60*
                     > 10, = or < 20    Fund        (1)                    .85*   .80*   .55*
                     > 20                           (1)                    .65*   .65*   .45*

      The reference interest rates are based on the average corporate bond
   earnings published by Moody's Investors Service, Inc.

      Section 4217 defines running averages of the published monthly yield
   rates for 12-month and 36-month periods.

      The year of issue, of purchase or of change-in-fund, applicable to
   the running yield average ending in the current year, is the next
   following year for Life Insurance other than single premium life
   insurance of the kind referred to in Section 4217(c)(4)(B)(vi) (i.e.
   Category A in the Circular Letter) and the current year for all other
   business (i.e. Categories B through H in the Circular Letter).

      The following table shows Moody's yield averages for recent years:

                            TABLE 2

                      12-Month      36-Month
  For Period Ending   Running       Running       Lesser of
    June 30 of Year   Average       Average       Two Averages

                      (1)           (2)           (3)

        1981          13.71%        11.57%        11.57%
        1982          15.70         13.64         13.64

        1983          13.39%        14.26%        13.39%
        1984          13.22         14.10         13.22

        1985          13.01%        13.21%        13.01%
        1986          10.75         12.33         10.75

        1987          9.40%         11.05%        9.40%
        1988          10.32         10.15         10.15

        1989          10.09%        9.93%         9.93%
        1990          9.52          9.97          9.52

        1991          9.63%         9.74%         9.63%
        1992          8.88          9.34          8.88

        1993          8.13%         8.88%         8.13%
        1994          7.52          8.18          7.52

        1995          8.42%         8.03%         8.03%

      The maximum nonforfeiture interest rate for Life Insurance, under
   Section 4221(k), for a particular issue year, is equal to 125% of the
   maximum reserve valuation interest rate for the same issue year, rounded
   to the nearer 1/4%.

      Should the computed maximum reserve valuation interest rate for Life
   Insurance (other than Single Premium Life Insurance covered in Category
   B on page 3 of the Circular Letter) for a particular issue year be
   different from the actual maximum reserve valuation interest rate for
   the next previous issue year by less than 1/2%, then the maximum reserve
   valuation interest rate for such particular issue year will be the same
   as that for such next previous issue year.

 CROSS REFERENCE  INS. LAW  4217; INS. LAW  4218; INS. LAW  4221

 DATE NEW     1995

 SUBJECT CATEGORY  020 - Life insurance / insurers
                   040 - Annuities
                   300 - The policy
                   560 - Finance and investments

 INDEX
   Policy reserves and Valuation methods and Life insurance
   Interest rates and Valuation methods and Policy reserves
   Nonforfeiture benefits and Valuation methods and Interest rates
   Annuities and Policy reserves and Valuation methods
   Single premium policies and Policy reserves and Valuation methods

 INFORMATION TYPE  TEXT;CHARTS/TABLES

 DOCUMENT ID  NY MISC BC Circular Letter 1995-10