New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter IV - Financial Condition Of Insurer and Reports to Superintendent
Subchapter A - Rules of General Application
Part 79 - Letters Of Credit
Section 79.6 - Reinsurance reporting requirements
Universal Citation: 11 NY Comp Codes Rules and Regs ยง 79.6
Current through Register Vol. 46, No. 39, September 25, 2024
(a) A letter of credit may not be used to reduce any liability for reinsurance ceded to an unauthorized reinsurer in financial statements required to be filed with this department unless:
(1) a letter of credit, in compliance with
the provisions of this Part with the filing ceding insurer as beneficiary, has
been issued on or before the "as of" date of the financial statement of the
ceding insurer; and
(2) the letter
of credit, or a copy thereof, is in the possession of the beneficiary within 30
days of its issue date.
(b) The reduction for the letter of credit shall be the lesser of:
(1) the amount
available under the letter of credit;
(2) the amount of reinsurance recoverables
under the reinsurance agreement which the letter of credit was obtained in
conjunction with; or
(3) as
respects reinsurance agreements covering life, annuity and accident and health
risks, the amount of reinsurance recoverables permitted in accordance with
section 125.5 of this Title (Regulation
20).
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