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 85 - Allowance Of Aircraft As An Admitted Asset
Section 85.2 - Showing of reasonable need

Universal Citation: 11 NY Comp Codes Rules and Regs ยง 85.2

Current through Register Vol. 46, No. 39, September 25, 2024

There shall be a showing of reasonable need for the aircraft based upon a study prepared by the company or a consultant or both. Such study shall take the following factors into account, among others:

(a) the past use of air travel by those who will make use of the aircraft;

(b) a projection of normal future use, specifying those persons who will use the aircraft and their normal point of departure and destination;

(c) a comparison of the estimated cost of acquisition and maintenance of the proposed aircraft with the cost of use of alternate modes of transportation, such as scheduled, chartered or leased aircraft. The following factors should be considered, among others:

(1) the availability and cost of commercial air service, based on current schedules;

(2) the availability and cost of the combined use of owned aircraft and scheduled, chartered or leased aircraft;

(3) the estimated loss in investment income resulting from the capital expenditure; and

(4) the projected cost and/or loss of executive time by other means of transportation than the proposed aircraft; and

(d) any additional factors which the superintendent, in his discretion, considers pertinent.

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