Section 98.4(b)(5)(ii) is amended by adding clause (c) to allow for mortality improvement to be used in the application of the X factors for varying premium term life insurance policies issued on or after January 1, 2015.

Section 98.4(b)(5)(iii) is deleted and new section 98.4(b)(5)(iii)(a) and (b) is added to separate the requirements for policies issued prior to January 1, 2015 and varying premium term life insurance policies issued on or after January 1, 2015. For varying premium term life insurance policies issued on or after January 1, 2015, mortality improvement may be recognized in the application of the X factors.

Section 98.4(b)(5)(vii)(b) is amended to separate the opinion requirements for policies issued prior to January 1, 2015 and varying premium term life insurance policies issued on or after January 1, 2015.

Section 98.6(a) is amended by dividing paragraph (1) into two subparagraphs, and adding new paragraphs (7) through (12), which provide the reserve methodology to be followed for varying premium term life insurance policies issued on or after January 1, 2015.

Section 98.6(b)(1) is amended by renumbering that section to 98.6(b)(1)(i) and adding a new subparagraph (ii) to address the deficiency reserve requirements for varying premium term life insurance policies issued on or after January 1, 2015.

Section 98.6(b)(2) is amended to specify reserve methodology requirements for the calculation of deficiency reserves for varying premium term life insurance policies issued on or after January 1, 2015.

Section 100.1 is amended by adding a new subdivision (c), which recognizes and permits the use of mortality improvement scale LT for varying premium term life insurance.

Section 100.2 is amended by changing the applicability section and clarifying that new section 100.11 applies only to varying premium term life insurance policies.

Section 100.3 is amended by re-lettering existing definitions for technical purposes and adding the new definitions: “mortality improvement scale LT” and “varying premium term life insurance”.

Section 100.6(a)(2) is amended to recognize mortality improvement in the calculation of basic reserves for varying premium term life insurance policies issued on or after January 1, 2015.

Section 100.6(a)(3) is amended to recognize mortality improvement in the calculation of deficiency reserves for varying premium term life insurance policies issued on or after January 1, 2015.

Section 100.6(a)(7) is amended to recognize mortality improvement in the calculation of segmented basic reserves for varying premium term life insurance policies issued on or after January 1, 2015.

Section 100.6(b)(8) is amended to recognize mortality improvement in the calculation of segmented deficiency reserves for varying premium term life insurance policies issued on or after January 1, 2015.

Section 100.11 (“Severability”) is re-numbered as section 100.12, and a new section 100.11 (“Varying Premium Term Life Insurance Mortality Improvement”) is added to provide the mortality improvement factors and formulas for varying premium term life insurance and includes a numerical example for applying the mortality improvement factors and formulas.

The minor revisions made to the adopted rulemaking from the revised proposed version were made for the purpose of clarification and to correct typographical errors. Therefore, the changes made to the last published rulemaking do not necessitate revision to the previously published RIS.

The minor revisions made to the adopted rulemaking from the revised proposed version were made for the purpose of clarification and to correct typographical errors. Therefore, the changes made to the last published rulemaking do not necessitate revision to the previously published RFA.

The minor revisions made to the adopted rulemaking from the revised proposed version were made for the purpose of clarification and to correct typographical errors. Therefore, the changes made to the last published rulemaking do not necessitate revision to the previously published RAFA.

The minor revisions made to the adopted rulemaking from the revised proposed version were made for the purpose of clarification and to correct typographical errors. Therefore, the changes made to the last published rulemaking do not necessitate revision to the previously published JIS.

As a rule that requires a RFA, RAFA or JIS, this rule will be initially reviewed in the calendar year 2017, which is no later than the 3rd year after the year in which this rule is being adopted.

Fifth Amendment to Insurance Regulation 147 (11 NYCRR 98)

The Department of Financial Services (“Department”) received public comments on its revised proposed fifth amendment to 11 NYCRR 98 (Insurance Regulation 147). One commentator noted an inconsistency between the definitions of segmented method for varying premium term life insurance in section 98.3(m) and varying premium term life insurance in section 98.3(t). The Department agreed with this comment and amended the wording in section 98.3(t) to agree with the wording used in section 98.3(m).

A commentator recommended removing the text “followed by increasing varying premiums thereafter” from section 98.3(t). Insurance Law § 4217(c)(6)(C) specifically allows for reserves to be calculated based on a method consistent with the principles of section 4217 for life insurance policies that provide for a varying amount of insurance or the payment of varying premiums. Removing the text would be inconsistent with the requirements of section 4217(c)(6)(C); therefore the Department did not revise section 98.3(t) as recommended.

Another commentator noted that section 98.6(a)(1)(ii) contained a typographical error with respect to the referenced date of January 15, 2015. The Department agreed that the date included a typographical error, and amended the date to read January 1, 2015.

Third Amendment to Insurance Regulation 179 (11 NYCRR 100)

The Department received public comments on its revised proposed third amendment to 11 NYCRR 100 (Insurance Regulation 179). One commentator noted an inconsistency between the definitions of segmented method for varying premium term life insurance in section 98.3(m) and varying premium term life insurance in section 100.3(v). The Department agreed with this comment and amended the wording in section 100.3(v) to agree with the wording used in section 98.3(m).