N.Y. ISC Law § 4232

§ 4232. Amounts credited on certain contracts or life insurance\npolicies. (a) (1) If any contract subject to section four thousand two\nhundred twenty-three of this article, provides for additional amounts to\nbe credited to the contract during any period in accordance with the\nprovisions of paragraph one of subsection (g) of section four thousand\ntwo hundred thirty-one of this article, then any additional amounts to\nbe so credited must be determined for each year during such period.\nExcept as otherwise provided in the contract in accordance with section\nfour thousand two hundred twenty-three of this article, the total amount\nso credited shall be available to the contract holder upon surrender of\nthe contract for its cash surrender benefits.\n (2) No such additional amounts shall be guaranteed or credited except\nupon: (i) reasonable assumptions as to investment income, mortality, and\nexpenses; (ii) a basis equitable to all contract holders of a given\nclass; and (iii) written criteria approved by the board of directors of\nthe company or a committee thereof.\n (3) Any such additional amounts credited under a group annuity\ncontract for which certificates are subject to section four thousand two\nhundred twenty-three of this article shall be credited to such\ncertificates.\n (b) (1) Any individual life insurance policy may provide that in\naddition to any minimum benefits guaranteed in the policy, additional\namounts may be credited to the policy.\n (2) No such additional amounts shall be guaranteed or credited except\nupon reasonable assumptions as to investment income, mortality,\npersistency, and expenses. The declaration of such additional amounts by\nan insurer must be made prospectively; no such additional amounts shall\nbe credited retroactively to apply to any period prior to such\ndeclaration.\n (3) Such additional amounts are required to be credited to any policy,\nproviding for the crediting of additional amounts, while continued under\na reduced paid-up insurance option, with respect to the period after the\ntermination or lapse of such policy by reason of default in payment of\nany premium, installment or interest on any policy loan and before the\nreinstatement of such policy, if it is reinstated. However, an insurer\nmay use reasonable assumptions as to investment income, mortality,\npersistency, and expenses which differ from the assumptions used for\npolicies in force on a premium paying basis.\n (4) Any such additional amounts shall be credited on a basis equitable\nto all policyholders of a given class and shall be based on written\ncriteria approved by the board of directors of the company or a\ncommittee thereof.\n