NEW YORK STATE
INSURANCE DEPARTMENT

1ST AMENDMENT TO REGULATION 47
(11 NYCRR 50)

SEPARATE ACCOUNTS AND SEPARATE ACCOUNT ANNUITIES

           I, Neil D. Levin, Superintendent of Insurance of the State of New York, pursuant to the authority granted by Sections 201, 301, 3201, 4240 and 4527 of the Insurance Law, do hereby promulgate the following first amendment to Part 50 of Title 11 of the Official Compilation of Codes, Rules and Regulations of the State of New York (Regulation 47), to take effect upon publication in the State Register.

(MATTER UNDERLINED IS NEW; MATTER IN BRACKETS IS DELETED)

Paragraph one of subsection (a) of Section 50.6 is amended to read as follows:

            (1) Each variable annuity contract delivered or issued for delivery in this state shall provide that neither expenses actually incurred, other than taxes on the investment returns, nor mortality actually experienced, shall adversely affect the dollar amount of variable annuity payments to any annuitant for whom variable annuity payments have commenced. Where a group variable annuity contract provides that the scale of charges to be made against the assets of a separate account may be changed without the consent of the participants for whom variable annuity payments have commenced, the contract shall provide that such changes may not adversely affect the dollar amount of variable annuity payments which have commenced. The method of computing the dollar amount of variable annuity payments shall be such that, if the annual rate of investment return of the separate account, as defined in section 50.1(a) (7) hereinabove, were six and one-half percent at all times from the issue of the contract, such amounts would not decrease. The superintendent may authorize the use of other methods or rates in computing the dollar amount of variable annuity payments where such methods or rates are determined by the superintendent to be fair, equitable, reasonable and not less favorable to the participants or annuitants.

Subsection (b) of the Section 50.6 is amended to read as follows:

            Every individual variable annuity contract delivered or issued for delivery in this state, and every certificate or other writing furnished by the insurer to an employee in this state under a group variable annuity contract in connection with the election of a variable annuity shall contain on its first page, in addition to the required provisions of Section [227.1(i)] 4240(a)(11) of the Insurance Law, a statement which (i) discloses the smallest annual rate of investment return which would have to be earned on the assets of the separate account so that the dollar amount of variable annuity payments will not decrease or (ii) sets forth the conditions under which the dollar amount of variable annuity payments will not decrease, and a statement of any explicit charges against the assets of the separate account.

            I, Neil D. Levin, Superintendent of Insurance of the State of New York, do hereby certify that the foregoing is the first amendment to 11 NYCRR 50, promulgated by me on April 5, 2000, pursuant to the authority granted by Sections 201, 301, 3201, 4240 and 4527 of the Insurance Law, to take effect upon publication in the State Register.

Pursuant to the provisions of the State Administrative Procedure Act, prior notice of the proposed amendment was published in the State Register on January 26, 2000. No other publication or prior notice is required by statute.

 

__________________________
Neil D. Levin
Superintendent of Insurance
 
Dated: April 5, 2000