The New York State Insurance Department wants to encourage life insurers to sell riders that will keep life policies in force if policyholders lose their jobs.

The department has proposed regulations that would set minimum standards for unemployment lapse rider benefit levels and benefit eligibility and exclusions.

The proposed regulations also would require that the premium charged be reasonable in relation to the benefit provided, according to a department discussion of the proposed regulations.

The regulations would give insurers a choice of using rates proposed by the department or setting their own rates. Insurers that set their own rates would have to meet a 60% annual loss ratio requirement.

The 60% loss ratio requirement is included a consumer credit insurance model approved by the National Association of Insurance Commissioners, Kansas City, Mo., according to the New York department.

Links to the text of the proposed regulations and New York department discussion of the proposed regulations are on the Web at Document Link