NY A11116

Amends insurance law to implement the NAIC valuation manual (adopted December 2, 2012, as amended) for individual and group life insurance policies and annuity contracts issued on or after January 1, 2019, subject to superintendent approval.

Requires companies to establish reserves using principle-based valuation that quantifies benefits, guarantees, and risks at appropriate levels of conservatism and incorporates company experience or other relevant statistical data.

Mandates companies establish corporate governance procedures, provide annual internal control certifications to the superintendent and board of directors, and submit mortality, morbidity, and policyholder behavior data annually.

Permits the superintendent to deviate from valuation manual standards through regulation but prohibits deviations that result in reserves lower than the manual's minimum standards, and allows exemptions for domestic companies licensed only in New York.

Requires the Department of Financial Services to study the valuation manual's impact on reserves, premiums, consumer costs, risk-based capital, and departmental oversight, with reports due in years 2, 5, and 7 after the manual's operative date; the act expires 10 years after enactment.