STATE OF NEW YORK
INSURANCE DEPARTMENT
160 WEST BROADWAY
NEW YORK, NEW YORK 10013

NOTE: WITHDRAWN EFFECTIVE OCTOBER 11, 2002

                                              Circular Letter No. 11 (1997)
                                              June 24, 1997
        
TO:     All licensed life insurers, fraternal benefit societies, 
        charitable and segregated gift annuity societies, employee welfare 
        funds, retirement systems, viatical settlement companies, 
        governmental supplemental annuity funds, savings bank life 
        insurance departments, accredited life reinsurers, 
        property/casualty insurers, co-operative property/casualty 
        insurers, financial guaranty insurers, mortgage insurers, 
        reciprocal insurers, accident and health insurers,Article 43
        Corporations, Public Health Law Article 44 health maintenance 
        organizations, title insurers, the State Insurance Fund, the 
        Medical Malpractice Insurance Association and accredited
        property/casualty reinsurers; all hereinafter referred to as 
        "licensees".

RE:     Impact of Year 2000 on the Insurance Industry

For many licensees the Year 2000 will present a number of computer
problems, many of which, if not adequately addressed, could impair the 
ability to fulfill contractual obligations and disrupt the insurance market.  
As such, the Insurance Department wants to confirm that all licensees under 
its jurisdiction have assessed the situation and have started to address the
potential problems presented by Year 2000.

The purpose of this Circular Letter is to determine which licensees 
be vulnerable to the Year 2000 problem and also to determine whether such 
licensees have assessed the Year 2000 problem and its financial impact.  

Please respond to the following questions and provide the 
information requested:

1. Does your organization have a written plan to ensure that your/your 
vendor's information processing (hardware and software) and delivery (voice 
and data communications) systems are Year 2000 compliant?  Does the plan 
provide for regular reporting to and monitoring by senior management?  
Please provide an overview of this plan including key milestones and target 
dates and the name of a person we can contact for follow up.  If your 
organization does not have such a plan, please explain.

2. Has your organization/your vendor established a budget for the 
Year 2000 effort and have you/your vendor determined whether you have 
sufficient resources (hardware, people and dollars) necessary to ensure 
Year 2000 processing capabilities?  Please provide a breakdown of the 
expected cost components.  If your organization has not budgeted for 
Year 2000 compliance, please explain.    

All responses to this Circular Letter are to be made to the 
Department by July 31, 1997. 

All licensed life insurers, fraternal benefit societies, charitable 
and segregated gift annuity societies, employee welfare funds, retirement 
systems, viatical settlement companies, governmental supplemental annuity
funds, savings bank life insurance departments and accredited life 
reinsurers are to direct their responses and any questions relating to this 
Circular Letter to:

                        Mr. Michael Maffei, Principal Insurance Examiner
                        New York State Insurance Department
                        Financial Condition Life Bureau
                        160 West Broadway
                        New York, New York 10013
                        Telephone (212) 602-0309       

All licensed property/casualty insurers, co-operative
property/casualty insurers, financial guaranty insurers, mortgage 
guaranty insurers, title insurers, reciprocal insurers, accident and 
health insurers, Article 43 Corporations, Public Health Law Article 44 
health maintenance organizations, the State Insurance Fund, the 
Medical Malpractice Insurance Association and accredited 
and casualty reinsurers are to direct their responses and any questions
relating to this Circular Letter to:

                        Mr. Leroy Kaalund, Associate Insurance Examiner
                        New York State Insurance Department
                        Financial Condition Property/Casualty Bureau
                        160 West Broadway
                        New York, New York 10013
                        Telephone (212) 602-0243



________________________                ________________________
Martin F. Carus                         Vincent Laurenzano
Assistant Deputy Superintendent         Assistant Deputy Superintendent
and Chief Examiner                      and Chief Examiner
Financial Condition Life Bureau         Financial Condition Property /
                                        Casualty Bureau

Year 2000 Information