NY 4228

[mjb]

[begin rant]
NY Section 4228 sucks. It is officially the worst section on any syllabus from any exam I've written. Plus, I'm writing the Canadian version of this exam so why did they include it on my syllabus!
[end rant]
Whew. Glad I got that out. Maybe a bit overstated but that's how I feel about it at this precise moment in time.:crazy:

[LifeAct]

I am pretty much ignoring most of this. There are alot of tedious numbers to remember. The only thing that I am trying to memorize is the expenses that are restricted under 4228.

I belive that Another fact to remember is that it effects every policy issued by any company that does business in NY. Some companies don't sell in NY because they don't want to have to comply with this on business sold in other states. Some companies have subsidiaries that sell in NY to get around this law.

[mjb]

I am pretty much ignoring most of this. There are alot of tedious numbers to remember. The only thing that I am trying to memorize is the expenses that are restricted under 4228.

I belive that Another fact to remember is that it effects every policy issued by any company that does business in NY. Some companies don't sell in NY because they don't want to have to comply with this on business sold in other states. Some companies have subsidiaries that sell in NY to get around this law.
Yeah, Im certainly going to dwell on it. It's also at the end of the Marketing for Actuaries book which I find to be a poor book in general, so I think I was already in a bad mood. :-)

[Hachover]

I am pretty much ignoring most of this. There are alot of tedious numbers to remember. The only thing that I am trying to memorize is the expenses that are restricted under 4228.

I belive that Another fact to remember is that it effects every policy issued by any company that does business in NY. Some companies don't sell in NY because they don't want to have to comply with this on business sold in other states. Some companies have subsidiaries that sell in NY to get around this law.


What expenses are limited? Only selling expenses. Define selling expenses.

[LifeAct]

What expenses are limited? Only selling expenses. Define selling expenses.

It also includes agent bonuses, awards and prizes, security benefits. Sure, these are all selling expenses, but they aren't the first things that I think of. My point was that the entire statute is a bunch of tedious values. X% of premiums, you can substitute Y% of account value for every Z% of premiums. If a gift is less than W, it does not need to be counted. I'm not going to waste my time trying to remember all of that crap. If they happen to ask the values for Y and Z, then I will miss out on those 3 points.

[wat?]

It also includes agent bonuses, awards and prizes, security benefits. Sure, these are all selling expenses, but they aren't the first things that I think of. My point was that the entire statute is a bunch of tedious values. X% of premiums, you can substitute Y% of account value for every Z% of premiums. If a gift is less than W, it does not need to be counted. I'm not going to waste my time trying to remember all of that crap. If they happen to ask the values for Y and Z, then I will miss out on those 3 points.

You can probably wave your hand at it and still get full credit.

"... based on a %age of premiums or a %age of account value (as a substitute for % of premiums) ... "