NY Puts Foot Down On New Reserve Rules For Life Insurers

Law360, New York (September 12, 2013, 2:28 PM EDT) -- New York will drop out of a new system for calculating the reserves life insurers must set aside to pay claims, the state’s top insurance regulator said Wednesday, calling the system a "recipe for disaster" that could undermine state insurance regulation.

In a sharply-worded letter to the National Association of Insurance Commissioners, Superintendent of Financial Services Benjamin Lawsky said that transitioning from a formula-based reserving regime to a principles-based reserving method has done little to quell “gamesmanship and abuses” by life insurers that want to avoid...
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