Sec. 103.8. Reinsurance

(a) The minimum valuation standards specified by this Part are prior to reflecting any reinsurance ceded.

(b) A credit for reinsurance may be recognized for reinsurance agreements that comply with the Insurance Law and this Title, including Insurance Law section 1308, Part 79 (Insurance Regulation 133), Part 125 (Insurance Regulation 20), Part 126 (Insurance Regulation 114), Part 83 (Insurance Regulation 172), and Part 127 (Insurance Regulation 102) of this Title, and any other applicable regulations, as applicable.

(c) For each such reinsurance agreement, the credit for reinsurance shall be the difference between the reserve determined prior to reflecting such reinsurance and the reserve determined after reflecting such reinsurance, where the reserve after reflecting such reinsurance is calculated as follows:

(1) for individual term life insurance policies subject to section 103.4 of this Part, the greater of:

(i) the amount determined pursuant to section 103.4(c)(1) of this Part reduced by the credit for reinsurance determined pursuant to the Insurance Law and this Title, including Insurance Law section 1308, Part 79 (Insurance Regulation 133), Part 125 (Insurance Regulation 20), Part 126 (Insurance Regulation 114), Part 83 (Insurance Regulation 172), and Part 127 (Insurance Regulation 102) of this Title, and any other applicable regulations, as applicable; and

(ii) the minimum aggregate reserve after reflection of such reinsurance ceded calculated in accordance with the methodology and assumptions prescribed by the valuation manual;

(2) for the policies, contracts, certificates, and benefits subject to section 103.5 of this Part, the greater of:

(i) the amount determined pursuant to section 103.5(d)(1) of this Part reduced by the credit for reinsurance determined pursuant to the Insurance Law and this Title, including Insurance Law section 1308, Part 79 (Insurance Regulation 133), Part 125 (Insurance Regulation 20), Part 126 (Insurance Regulation 114), Part 83 (Insurance Regulation 172), and Part 127 (Insurance Regulation 102) of this Title, and any other applicable regulations, as applicable; and

(ii) the minimum aggregate reserve after reflection of such reinsurance ceded calculated in accordance with the methodology and assumptions prescribed by the valuation manual;

(3) for variable annuity contracts and policies subject to section 103.6 of this Part, the greater of:

(i) the amount determined in section 103.6(b)(2)(i)(a) or section 103.6(b)(3)(i) of this Part, as applicable, reduced by the credit for reinsurance determined pursuant to the Insurance Law and this Title, including Insurance Law section 1308, Part 79 (Insurance Regulation 133), Part 125 (Insurance Regulation 20), Part 126 (Insurance Regulation 114), Part 83 (Insurance Regulation 172), and Part 127 (Insurance Regulation 102) of this Title, and any other applicable regulations, as applicable; and

(ii) the minimum aggregate reserve after reflection of such reinsurance ceded calculated in accordance with the methodology and assumptions prescribed by the valuation manual;

(4) for all individual and group life insurance policies, annuity contracts, and accident and health insurance contracts subject to section 103.7 of this Part, the greater of:

(i) the amount determined in section 103.7(b)(1) or section 103.8(c)(1) of this Part, as applicable, reduced by the credit for reinsurance determined pursuant to the Insurance Law and this Title, including Insurance Law section 1308, Part 79 (Insurance Regulation 133), Part 125 (Insurance Regulation 20), Part 126 (Insurance Regulation 114), Part 83 (Insurance Regulation 172), and Part 127 (Insurance Regulation 102) of this Title, and any other applicable regulations, as applicable; and

(ii) the minimum aggregate reserve after reflection of such reinsurance ceded calculated in accordance with the methodology and assumptions prescribed by the valuation manual.