New York Life Insurance Compliance Lawyer & Attorney : Currin Law Office : Annuity Compliance & Insurance Regulation

I have written before about the confusion over the post-approval review ("PAR") process -  more recently, about the process of getting a form revised via the PAR approved.  This week, some of my concerns came to fruition when I received an objection letter from the actuarial unit on a policy that was submitted at the NYSID's request for full prior approval upon completion of a PAR. 

This form is very similar to the one that was approved on a CL-6 basis but has the usual minor language tweaks that result from a post-approval review.  Both the Department actuaries and lawyers reviewed those revisions and the legal unit issued a letter indicating the PAR file was being closed and the revised form should be submitted for full prior approval.  The company and I (mistakenly) thought that meant the NYSID had signed off on the changes we made during the PAR.  It seems to defy logic that they would review changes but be dissatisfied and yet still close the file.  But now the actuarial objection letter asks for further revisions to the exact language that was the subject of revision in the PAR.    

In addition, a brand new issue was raised that is more significant to the product design than any that was raised in the PAR.  As we continue to make our way through this process looking for some finality at some point, it seems there must be a better way! 

• Email This
• Print
• Comments
• Trackbacks

On August 20, 2007, the NYSID posted 13 new OGC opinions.  Included in these was a new Reg 60 opinion.  Two questions were presented and the Department's position on the first was not really a surprise to me, but their position on the second could lead to some difficult decisions in the future.  The question was:  "If an annuitant surrenders or otherwise terminates an individual annuity contract before its maturity date, and at a later time purchases a new individual life insurance policy, which is delivered or issued for delivery in New York State by an authorized insurer, is there a replacement as defined by section 51.2(a)(1) of Regulation 60?"   The response was "It depends on the facts.  If the producer and the annuitant had a plan that an a new individual life insurance policy would be purchased from the same producer at a later time after the annuity contract was surrendered or otherwise terminated, then there is a replacement within the meaning of section 51.2(a)(1) of Regulation 60."  www.ins.state.ny.us/ogco2007/rg070712.htm, Continue Reading...

• Email This
• Print
• Comments
• Trackbacks

I have now had a couple experiences with the new process of submitting revised  forms for prior approval after a post-approval review ("PAR")  is complete.  In addition to the issues raised here previously about this, one question that has come up is the status of forms that are not revised in the PAR. 

For example, an original submission had 10 true policy forms and each had variable material.  The hypothetical PAR is complete and there were no violations of law, regulation or circular letter found, but the examiner requested a variety of minor changes in the review - but only on 3 of those forms and on 1 Statement of Variability.   Under the new procedure, a closing letter would be issued on the post-approval and a request made for a new prior approval submission. 

In my experience the request for a full prior approval submission would be for the 3 forms and 1 SOV as those were the only forms from the original submission that were revised during the review process.   But what then is the status of the other forms in the original submission?   The SOVs for the 3 true policy forms would have to be re-submitted because the 3 forms will need new form numbers so the original SOVs won't line up any longer.    The other forms were approved on a CL6 basis and apparently reviewed, but no comments were made on them and no revisions requested in the PAR.  The revised forms that have to be re-submitted will be returned with a full "Approved" stamp.  But what of those others?  Shouldn't all the forms that receive a full review by the examiners, even if it is in the context of a PAR, receive that "Approved" stamp?   Under this new process, a single original CL6 submission package could ultimately have several different dispositions after a PAR and resubmission on a prior approval basis.   This adds yet another level of complexity to already difficult product filing decisions.    

• Email This
• Print
• Comments
• Trackbacks