New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter IV - Financial Condition Of Insurer and Reports to Superintendent
Subchapter D - Reinsurance
Part 125 - Credit For Reinsurance
Section 125.1 - Preamble and applicability
Universal Citation: 11 NY Comp Codes Rules and Regs ยง 125.1
Current through Register Vol. 46, No. 12, March 20, 2024
(a)
(1)
This Part sets forth the rules governing the admitted asset status of
reinsurance recoverable by domestic insurers. Most significant in this regard
are rules permitting credit for reinsurance for cessions to certified assuming
insurers and reciprocal jurisdiction assuming insurers. The covered agreements
between the United States and the European Union and between the United States
and the United Kingdom mandate credit for reinsurance ceded to certain
reciprocal jurisdiction assuming insurers. These covered agreements also
eliminate security requirements on certain European Union-domiciled and United
Kingdom-domiciled assuming insurers that reinsure business from United
States-domiciled ceding insurers provided that certain regulatory criteria are
met.
(2) This Part implements a
reciprocal jurisdiction assuming insurer framework. In connection with a
reciprocal jurisdiction assuming insurer framework, the NAIC publishes a list
of jurisdictions for consideration by the states as reciprocal jurisdictions.
The superintendent will publish a list of jurisdictions that are reciprocal
jurisdictions under this Part and in so doing will include a jurisdiction that
is a reciprocal jurisdiction as defined in section
125.2(n)(1) and
(2) of this Part and will consider including
any jurisdiction on the NAIC's list. The superintendent may also approve a
jurisdiction that does not appear on the NAIC list by taking into consideration
criteria published by the NAIC. The superintendent may remove a jurisdiction
that is not a reciprocal jurisdiction from the superintendent's list upon a
determination that the jurisdiction no longer meets one or more of the
requirements, except the superintendent will not remove a jurisdiction that is
a reciprocal jurisdiction as defined in section
125.2(n)(1) and
(2) of this Part. Upon removal of a
jurisdiction from the superintendent's list, credit for reinsurance ceded to an
assuming insurer domiciled in that jurisdiction shall be allowed if otherwise
allowed pursuant to section
125.4(c),
(d), (g), (h) and section
125.5(a)
of this Part.
(3) The
superintendent also will publish a list of assuming insurers that have
satisfied the conditions set forth in section
125.4(i)(2)
of this Part and to which cessions shall be granted credit in accordance with
section
125.4
of this Part. If an NAIC-accredited jurisdiction has determined that the
conditions set forth in section
125.4(i)(2)
of this Part have been met, then the superintendent may defer to that
NAIC-accredited jurisdiction's determination and add such assuming insurer to
the list of assuming insurers to which cessions shall be granted credit in
accordance with section
125.4(i)
of this Part. The superintendent may accept financial documentation filed with
another NAIC-accredited jurisdiction or with the NAIC in satisfaction of the
requirements of section
125.4(i)(2)
of this Part. When requesting that the superintendent defer to another
NAIC-accredited jurisdiction's determination, an assuming insurer shall submit
the form prescribed by the superintendent pursuant to section
125.4(i)(2)(iv)
of this Part and any additional information that the superintendent may
require. Notwithstanding the foregoing, the superintendent will not impose any
requirement that conflicts with an applicable covered
agreement.
(b) This Part shall apply to insurers authorized to do business in this State, provided that if the state of domicile of an authorized ceding insurer is an NAIC-accredited jurisdiction , a qualified jurisdiction, or a reciprocal jurisdiction , then the authorized ceding insurer may take credit for the reinsurance.
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