References to charges that do not apply
In a recent discussion with attorneys in NY's Life Bureau, I was advised that in post-approval reviews the NYSID is seeing - and not liking! - policy forms that refer generally to charges, but in other places within the form note that they do not apply. I believe that in many cases the general reference is an attempt to use generic, national pages and the specific reference is often a NY-specific provision making clear that a certain charge does not apply in NY. For example, one reference might say that "charges, if any, will be deducted" in a particular situation. In another location within the policy form there would be an explanation of the specific charges and when they do and do not apply. If no charges would in fact be deducted in NY at the time the general statement refers to, the attorneys are now very likely to object on PAR.
The basis for the objection is likely to be one of the catch-all statutes, 3201(c), unjust, unfair or inequitable. Of course new and broad applications of that section are very difficult, if not impossible, to predict in advance when the certified filing is made. Interpretations are often moving targets and this again highlights the risks associated with the certified process and the costs associated with launching a product filed via certification. We can all do our very best to review the laws, regulations and circular letters, and even the outlines and website guidance in good faith and a genuine desire to do everything correctly, but we can't read minds. As long as new interpretations of general statutes are fair game in post-approval reviews, we can, unfortunately, expect changes to approved forms on PAR.
