Introduction to LawTamer: NY

©2009 Paul Margus, FSA, MAAA
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Because the insurance business is inherently complex, insurance statutes are difficult to read and interpret, even in the best of circumstances. New York Statutes are especially daunting. Many of them deal with unique subjects. Section 4228 (Limitations of Expenses for Life Insurance and Annuities) is a noteworthy example.

The LawTamer is a reformatted version of the NY Insurance Statutes. Although the essential content is completely unchanged, it is far easier to read.
Following is a side-by-side comparison of a part of Section 4228 in its original form with the LawTamer Format.

Statute as Written
Statute in LawTamer Format
     
(4) The total selling expense limit shall be the sum of the amounts determined pursuant to subparagraphs (A), (B), (C), (D), (E), (F), (G), (H), (I) and (J) of this paragraph, except as any of those subparagraphs may be adjusted pursuant to the provisions of subparagraph (K) of this paragraph.

§4228(c)(4)

(4) The total selling expense limit shall be the sum of the amounts determined pursuant to subparagraphs (this ¶)(A) , (this ¶)(B) , (this ¶)(C) , (this ¶)(D) , (this ¶) (E) , (this ¶)(F) , (this ¶)(G) , (this ¶)(H) , (this ¶)(I) and (this ¶)(J) ,except as any of those may be adjusted pursuant to the provisions of subparagraph (this ¶)(K) .

(A) For each life insurance policy, fifty-five percent of the qualifying first year premium.

§4228(c)(4)(A)

(A) For each life insurance policy, 55% of the qualifying 1st year premium.

(B) Five percent of excess premiums, single premiums and all considerations.

§4228(c)(4)(B)

(B) 5% of excess premiums, single premiums and all considerations.

(C) One hundred ten percent of the sum of the amount determined pursuant to subparagraphs (A) and (B) of this paragraph.

§4228(c)(4)(C)

(C) 110% of the sum of the amount determined pursuant to subparagraphs (this ¶)(A) and (this ¶)(B) .

(D) For all new life insurance paid for during the year, other than term insurance for less than one year, for which any premium is paid during the year, one dollar for each one thousand dollars of such insurance. New life insurance paid for shall include:

§4228(c)(4)(D)

(D) For all new life insurance paid for during the year, other than term insurance for less than 1 year, for which any premium is paid during the year, $1.00 for each $1,000 of such insurance. New life insurance paid for shall include:

(i) life insurance on new policies paid for during the calendar year;

§4228(c)(4)(D)(i)

(i) life insurance on new policies paid for during the calendar year;

(ii) life insurance on term conversions during the calendar year to permanent life insurance;

§4228(c)(4)(D)(ii)

(ii) life insurance on term conversions during the calendar year to permanent life insurance;

(iii) life insurance on policies which were renewed under more favorable terms than those guaranteed in the policy, subject to new underwriting requirements and new contestable period; and

§4228(c)(4)(D)(iii)

(iii) life insurance on policies which were renewed under more favorable terms than those guaranteed in the policy, subject to new underwriting requirements and new contestable period; and

(iv) increases in the death benefit of life insurance during the calendar year, other than those provided for in the policy, on policies in force.

§4228(c)(4)(D)(iv)

(iv) increases in the death benefit of life insurance during the calendar year, other than those provided for in the policy, on policies in force.

(E) Seventy dollars for each new policy, other than policies for term insurance for less than one year, and for each new contract paid for during such year. For purposes of this subparagraph, riders will not be considered as separate policies or contracts. New policies paid for during the year shall include policies referred to in items (i), (ii) and (iii) of subparagraph (D) of this paragraph.

§4228(c)(4)(E)

(E) $70 for each new policy, other than policies for term insurance for less than 1 year, and for each new contract paid for during such year. For purposes of (this sub¶) ,riders will not be considered as separate policies or contracts. New policies paid for during the year shall include policies referred to in items (this ¶)(D)(i) , (this ¶)(D)(ii) and (this ¶)(D)(iii) .

(F) Twelve percent of renewal premiums.

§4228(c)(4)(F)

(F) 12% of renewal premiums.

(G) Fifteen cents for each one thousand dollars of face amount of policies in force at the end of such year.

§4228(c)(4)(G)

(G) $0.15 for each $1,000 of face amount of policies in force at the end of such year.

(H) The sum of the amounts below:

§4228(c)(4)(H)

(H) The sum of the amounts below:

(i) one dollar for each one thousand dollars of the first one billion dollars of life insurance in force;

§4228(c)(4)(H)(i)

(i) $1.00 for each $1,000 of the 1st $1,000,000,000 of life insurance in force;

(ii) fifty cents for each one thousand dollars of the next one billion dollars of life insurance in force;

§4228(c)(4)(H)(ii)

(ii) $0.50 for each $1,000 of the next $1,000,000,000 of life insurance in force;

(iii) five one-hundredths of one percent of the first one billion dollars of annuity reserves; and

§4228(c)(4)(H)(iii)

(iii) 0.05% of the 1st $1,000,000,000 of annuity reserves; and

(iv) two and one-half of one hundredths of one percent of the next one billion dollars of annuity reserves.

§4228(c)(4)(H)(iv)

(iv) 0.025% of the next $1,000,000,000 of annuity reserves.


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