New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter IV - Financial Condition Of Insurer and Reports to Superintendent
Subchapter C - Fire, Marine, Casualty And Surety Insurers
Part 112 - Loss Portfolio Transfers
Section 112.4 - Affiliated transactions or transactions where the transferer is insolvent or impaired

Universal Citation: 11 NY Comp Codes Rules and Regs ยง 112.4

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

(a) No domestic insurer that is impaired, as defined in section 1310, 1311 or 1312 of the Insurance Law, or insolvent, as defined in section 1309 of the Insurance Law, shall enter into a loss portfolio transfer unless it has received the prior written approval of the superintendent. The loss portfolio transfer shall not be approved unless, in conjunction with any other component of a plan submitted by the insurer, it eliminates the impairment or insolvency and, if done between affiliates or members of the same holding company system, is fair and equitable to both insurers.

(b) Except where subdivision (a) of this section is applicable, a loss portfolio transfer entered into between a domestic insurer and an insurer that is an affiliate or is an insurer in the same holding company system, within the meaning of section 107 or 1501 of the Insurance Law, shall be subject to the following:

(1) A domestic controlled insurer, within the meaning of section 1501 of the Insurance Law, shall not enter into a loss portfolio transfer except in accordance with the provisions of section 1505 of the Insurance Law. In applying the provisions of section 1505 of the Insurance Law, a loss portfolio transfer shall be considered a reinsurance agreement.

(2) A domestic insurer, other than an insurer subject to paragraph (1) of this subdivision, that enters into a loss portfolio transfer shall:
(i) include language in the agreement providing that, should the superintendent find the agreement not fair and equitable, the insurer shall cancel the agreement, ab initio, within 30 days of the superintendent's written notice;

(ii) submit the agreement to the superintendent within 15 days after entering into it; and

(iii) where the superintendent finds that the agreement is not fair and equitable, cancel the agreement, ab initio, within 30 days of written notice from the superintendent. The superintendent shall make such a determination within 30 days of the receipt of the submitted agreement, except that this 30- day period may be extended in the event additional information is necessary to make a determination. The superintendent shall provide written notice of the extension to the insurer.

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