NYSID Announces Approval of Substandard Annuities
The NYSID has concluded that substandard immediate annuities can be written on a basis "similar to that permitted for structured settlements annuities." In the 2006 Annual Report, www.ins.state.ny.us/downpdf.htm#annrpt, at page 41, the Life Bureau states that: "As with structured settlements annuities, substandard underwriting for annuities must be limited to individually underwritten cases and to individuals with serious health impairments based upon medical information submitted to the insurer and an evaluation of a person's medical condition and life expectancy by an underwriter of the insurer. Substandard annuitants must have demonstrable health problems that can result in shorter life expectancy. Underwriters can either 'age-rate' up the applicant's age or adjust the mortality factors according to the impaired risk based on the applicant's medical records." (footnote omitted).
