UL Reserve Rule Will Stay
The New York Department of Insurance most likely will maintain its strict universal life reserves regulation until the National Association of Insurance Commissioners reaches a consensus on the issue. [@@]
Howard Mills, New York insurance superintendent, made that assertion during a recent UBS Investment Research investor conference call, according to a report on the call written by Andrew Kligerman, the lead life sector analyst at UBS.
New York tightened UL reserve rules earlier this year by adopting an emergency amendment to a key state insurance regulation, Regulation 147.
“Mr. Mills said that by issuing Regulation 147, New York state effectively compelled the life insurance industry to deal with the universal life secondary guarantee reserving issue and to seek a viable long-term solution,” Kligerman writes in his report.