Bill > S05308

This bill requires life insurance companies to ensure that their life insurance policies and annuity contracts are financially self-supporting, meaning the premiums and expected returns should reasonably cover the costs and potential payouts. Specifically, the bill mandates that insurance companies cannot offer policy forms that do not appear viable based on reasonable assumptions about interest rates, mortality rates, policy persistence, taxes, agent expenses, and other related costs. To demonstrate compliance, each policy form must be accompanied by a signed statement from a qualified actuary (a professional who analyzes financial risks using mathematical and statistical methods) who is a member of the American Academy of Actuaries. This actuary must provide a detailed demonstration supporting the policy's financial viability, which must be kept in the company's home office for six years and made available for inspection by the state superintendent. The bill repeals an existing section of insurance law and will take effect on the first day of January following its enactment, applying to all life insurance policies, annuity contracts, and debit life insurance policies entered into on or after that date. The goal is to protect consumers by ensuring that insurance products are financially sound and sustainable.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S5308