The New York Insurance Department has issued guidance for insurers filing policy forms for equity-indexed products.
Empire State officials say they are starting to get a “number of policy form submissions” for equity-indexed annuities and life insurance policies.
One general rule is that “the product must comply with all the usual nonforfeiture requirements associated with the particular product,” New York department officials write in the guidance. “There may be no loss of value in the product solely based on changes in the equity index.”
The contract must include a clear description of any limits–such as 50% of the change in the S&P 500 stock index–on how much product owners can share in any index gains, officials write.