N.Y. Comp. Codes R. & Regs. tit. 11 § 44.4

Current through Register Vol. 46, No. 45, November 2, 2024

Section 44.4 - Withdrawal charge formula

(a) A withdrawal charge, conforming to section 44.3(w) of this Part, may be assessed as a flat dollar charge, as a fixed percentage of the premium received or of the accumulation value, or as a variable amount subject to a market-value adjustment formula which may result in charges but need not result in credits provided the total withdrawal charge does not exceed the maximum in section 44.3(w) of this Part.

(b) A withdrawal charge, conforming to section 44.3(w)(1) of this Part:

(1) may be assessed at all times against the accumulation value, including at guaranteed benefit dates and at the annuity commencement date;

(2) may be waived at the option of the company, in whole or in part, at specified times such as at guaranteed benefit dates and then reimposed in part or in full for a subsequent time such as a new guarantee rate for a new specified time interval; and

(3) may be waived at the option of the company, for contracts providing guaranteed rates for a short specified time interval such as one year, if the company fails to declare a new rate for a new specified time interval, at least equal to a specified rate which rate shall be at least 0.5 percent lower than the initially declared rate.

(c) If a contract provides for both market-value adjustments and withdrawal charges, the withdrawal charge must be reduced to zero over several years in accordance with the maximum charges under section 44.3(w)(2) of this Part. In the case of flexible premium contracts, the withdrawal charge may be calculated separately for each premium or the first premium in a series of premiums.

(d) The contract shall contain a description of any withdrawal charge formula, including:

(1) the provisions of the formula, a description of each of the elements of the formula and identification of the source or publication where any data used in the formula may be found;

(2) a statement of the frequency with which adjustments made in accordance with the formula will be made;

(3) a statement of the points in time when contract values are available without application of the formula, and for how long they are available on an unadjusted basis;

(4) a description of any waivers of the withdrawal charge;

(5) a description of the application to additional premiums under flexible premium contracts; and

(6) the period over which withdrawal charges in accordance with section 44.3(w)(2) of this Part may be assessed or may be recovered from the date the premium or the first premium in a series of premiums is received.

N.Y. Comp. Codes R. & Regs. Tit. 11 § 44.4