STATE OF NEW YORK
25 BEAVER STREET
NEW YORK, NEW YORK 10004
NOTE: WITHDRAWN EFFECTIVE SEPTEMBER 1, 2004
See Circular Letter No. 6 (2004)
|Circular Letter No. 27 (2000)
August 21, 2000
|TO:||All Insurers Authorized to Write Life Insurance and Annuities, Including Life Insurers, Fraternal Benefit Societies, Charitable Annuity Societies and All Licensed Viatical Settlement Companies|
|RE:||Procedural Changes in the Approval Process and Recommended Changes|
|As part of the Departments
initiative to improve the "speed to market" objective for life insurance and
annuity products in the expanding financial services market, the Department has developed
an optional prior approval procedure. The new procedure involves the use of product
checklists, a certification of compliance, underlining (or highlighting) changes made to
previously approved forms and expanded submission letters. The Department anticipates that
this new procedure will assist in streamlining the current review and approval process as
we continue our efforts toward establishing a timeframe that is responsive to the needs of
the changing marketplace. The current prior approval procedure and the alternative
approval procedure under Section 3201(b)(1) and (6), respectively, remain in effect.
The product outlines available on the Department website at http://www.ins.state.ny.us will be modified to include new product checklists. The checklists will identify required and optional provisions and provide space to specify the location in the policy form where the complying language or provisions may be found. In addition to completing the checklist, an appropriate certification of compliance in the form prescribed by the Department (see Attachment 1) must be completed by the insurer. The certification of compliance will serve to ensure that the policy submissions have been developed and reviewed for compliance with New York law, regulations and circular letters. The completed certification and checklist will permit the Department, to expedite reviews of the policy forms. If it is determined that a certification of compliance is inaccurate, the company and certifying officer will be advised of the inaccuracy and of the need to take corrective action.
All submissions made under the new procedure that revise a previously approved form, other than a complete revision of the form, must underline (or highlight) the changes being made. The submission letter must clearly set forth an explanation as to the reason(s) for such changes. Any innovative or unique product or product features must be identified in the submission letter. In general, an innovative or unique product or feature would include one that has not been previously approved by the Department for the insurer or is new to the marketplace in New York. In addition, the submission letter or an attachment thereto must include a description of the material financial risks, including any asset/liability matching and liquidity risks, associated with the product, and a description of how such risks will be managed.
Policy form submissions which are accompanied by properly completed product checklists, the certification of compliance, are properly underlined (or highlighted) when necessary, identify any innovative or unique product or product features, identify the material financial risks and explain how such risks will be managed will be given priority in the processing of submissions. Insurers choosing to use this new procedure must include a statement in bold print in the submission letter clearly indicating that the insurer has chosen the "PRIOR APPROVAL WITH CERTIFICATION" procedure.
In addition to the above new filing option for policy form submissions, the Department strongly encourages for all available filing options that insurers interested in streamlining the review process for their product submissions utilize the following practices:
The Departments prior Circular Letters, including Circular Letter No. 14 (1997), Circular Letter No. 7 (1999), Circular Letter No. 8 (1999), Circular Letter No. 21 (1999) and Circular Letter No. 22 (1999), which brought to insurers attention procedures utilized by the Department in the review of policy form and rate filings, remain in effect. These procedures include the following:
Correspondence regarding this circular letter should be addressed to Kathleen Nelligan, Chief Insurance Policy Examiner, New York State Insurance Department, Agency Building One, Seventh Floor, Empire State Plaza, Albany, NY 12257.
|Very truly yours,
Policy Form Compliance Certification
Policy Form Compliance Certification - Word Format
Policy Form Compliance Certification - PDF Format