New York Laws
Article 42 - Life Insurance Companies and Accident and Health Insurance Companies and Legal Services Insurance Companies
4218 - When Actual Premium Is Less Than Net Premium; Minimum Reserve.

(2) This section shall not authorize any such company to issue any
policy or contract in violation of any other provision of this chapter.
(b) (1) In the case of any life insurance policy issued on or after
January first, nineteen hundred eighty-six, for which the actual premium
in the first policy year exceeds that of the second year and for which
no comparable additional benefit is provided in the first year for such
excess and which provides an endowment benefit or a cash surrender value
or a combination thereof in an amount greater than such excess premium,
the foregoing provisions of subsection (a) hereof shall be applied as if
the method actually used in calculating the reserve for such policy were
the method described in paragraph six of subsection (c) of section four
thousand two hundred seventeen of this article, ignoring the proviso of
such paragraph.
(2) The minimum reserve at each policy anniversary of such a policy
shall be the greater of the minimum reserve calculated in accordance
with paragraph six of subsection (c) of section four thousand two
hundred seventeen of this article, including the proviso of that
paragraph, and the minimum reserve calculated in accordance with this
section.

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