N.Y. ISC Law § 4218

§ 4218. When actual premium is less than net premium; minimum reserve.\n(a) (1) When the actual premium or consideration charged for life\ninsurance under any life insurance policy, issued by any life insurance\ncompany doing business in this state, is less than the modified net\npremium calculated on the basis of the commissioners reserve valuation\nmethod as defined in paragraph six of subsection (c) of section four\nthousand two hundred seventeen of this article and using the rate of\ninterest and mortality tables contained in the minimum valuation\nstandards in paragraphs two and four of such subsection, or in the case\nof future renewals under a renewable term insurance policy issued prior\nto the operative date of subsection (k) of section four thousand two\nhundred twenty-one of this article, the Modern CSO Mortality Table\npublished in the Transactions of the Society of Actuaries, Vol. XXVII\n(1975), the minimum reserve required for such policy shall be the\ngreater of either the reserve calculated according to the mortality\ntable, rate of interest, and method actually used for such policy, or\nthe reserve calculated by the commissioners reserve valuation method as\ndefined in paragraph six of subsection (c) of section four thousand two\nhundred seventeen of this article and using the mortality table and rate\nof interest prescribed in this section for calculating the commissioners\nreserve valuation method modified net premium and replacing such\nmodified net premium by the actual premium charged for the policy in\neach contract year for which such modified net premium exceeds the\nactual premium.\n (2) This section shall not authorize any such company to issue any\npolicy or contract in violation of any other provision of this chapter.\n (b) (1) In the case of any life insurance policy issued on or after\nJanuary first, nineteen hundred eighty-six, for which the actual premium\nin the first policy year exceeds that of the second year and for which\nno comparable additional benefit is provided in the first year for such\nexcess and which provides an endowment benefit or a cash surrender value\nor a combination thereof in an amount greater than such excess premium,\nthe foregoing provisions of subsection (a) hereof shall be applied as if\nthe method actually used in calculating the reserve for such policy were\nthe method described in paragraph six of subsection (c) of section four\nthousand two hundred seventeen of this article, ignoring the proviso of\nsuch paragraph.\n (2) The minimum reserve at each policy anniversary of such a policy\nshall be the greater of the minimum reserve calculated in accordance\nwith paragraph six of subsection (c) of section four thousand two\nhundred seventeen of this article, including the proviso of that\nparagraph, and the minimum reserve calculated in accordance with this\nsection.\n