NY Posts Guidance on Max Reserve Valuation and Non-Forfeiture Interest Rates

On Friday, September 10, 2010, the NY Insurance Department posted a “Clarification on Fixed Annuity Reserves Interest Rates”. The posting indicates that there has been some concern over the maximum valuation interest rate for FPDAs and it refers to section 4217(c)(4)(D)(iii). The notice indicates that this provision prohibits the use of an additional .05 weighting factor when annuities guarantee interest rates on future considerations more than 12 months beyond the valuation date.

The notice includes three PDF documents: General Information, Table A through Table H Rates and an Appendix of Moody’s Averages.