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 125.2 - Definitions

Universal Citation: 11 NY Comp Codes Rules and Regs ยง 125.2

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

(a) Alien group of insurers means a group of insurers located outside the United States whose members consist of individual incorporated assuming insurers that are not engaged in any business other than underwriting as a member of the group and individual unincorporated assuming insurers, provided that all the members are subject to the same level of solvency regulation and control by the group's domiciliary regulator, or a group of individual incorporated assuming insurers located outside the United States.

(b) Article 16 system means an authorized domestic insurer registered or required to register under Insurance Law article 16 and all of the insurer's subsidiaries.

(c) Article 17 system means a parent corporation registered or required to register under Insurance Law article 17 and all of the parent corporation's subsidiaries.

(d) Catastrophic loss means an event designated as a catastrophe by the property claims service, or an equivalent organization as determined by the superintendent, or any successor organization and covering losses related to a natural event including wind, hail, hurricane, earthquake, winter storms (snow, ice, freezing), fire, tsunami, or flood.

(e) Covered agreement means an agreement entered into pursuant to 31 U.S.C. sections 313 and 314 that is currently in effect or in a period of provisional application and addresses the elimination, under specified conditions, of security requirements as a condition for entering into any reinsurance agreement with a ceding insurer domiciled in this State or for allowing the ceding insurer to recognize credit for reinsurance.

(f) GAAP means generally accepted accounting principles.

(g) Head office means the insurer's headquarters from which the insurer's high-level officers direct, control, and coordinate the insurer's business activities.

(h) Holding company shall have the meaning set forth in Insurance Law section 1501(a)(3).

(i) Holding company system shall have the meaning set forth in Insurance Law section 1501(a)(6).

(j) IFRS means international financial reporting standards.

(k) Jurisdiction means any foreign country or self-governing political subdivision thereof, the United States, or any state, territory, or commonwealth of the United States.

(l) NAIC means the National Association of Insurance Commissioners.

(m) NAIC-accredited jurisdiction means any state, territory, or commonwealth of the United States that meets the requirements for accreditation under the NAIC financial standards and accreditation program.

(n) Reciprocal jurisdiction means a jurisdiction, designated by the superintendent, that is:

(1) a non-United States jurisdiction that is subject to an in-force covered agreement with the United States, each within its legal authority, or, in the case of a covered agreement between the United States and the European Union, a member state of the European Union;

(2) an NAIC-accredited jurisdiction; or

(3) a qualified jurisdiction, as determined by the superintendent pursuant to section 125.4(h)(8) of this Part, that is not otherwise described in paragraphs (1) or (2) of this subdivision and that the superintendent determines meets each of the following additional requirements:
(i) provides that an insurer that has its head office or is domiciled in such qualified jurisdiction shall receive credit for reinsurance ceded to a United States-domiciled assuming insurer in the same manner as credit for reinsurance is received for reinsurance assumed by insurers domiciled in such qualified jurisdiction;

(ii) does not require a United States-domiciled assuming insurer to establish or maintain a local presence as a condition for entering into a reinsurance agreement with any ceding insurer subject to regulation by the non-United States jurisdiction or as a condition to allow the ceding insurer to recognize credit for such reinsurance;

(iii) recognizes the United States' state regulatory approach to group supervision and group capital, by providing written confirmation by a relevant regulatory authority in such qualified jurisdiction that insurers that are domiciled or maintain their headquarters in this State or another NAIC-accredited jurisdiction shall be subject only to group supervision, including group governance, solvency and capital, and reporting, as applicable, by the superintendent or the commissioner of the domiciliary state and will not be subject to group supervision at the level of the ultimate parent of the holding company system by the qualified jurisdiction; and

(iv) provides written confirmation by the relevant regulatory authority in such qualified jurisdiction that information regarding insurers and their parent, subsidiary, or affiliated entities, if applicable, shall be provided to the superintendent pursuant to a memorandum of understanding or similar document between the superintendent and such qualified jurisdiction, including the international association of insurance supervisors multilateral memorandum of understanding or other multilateral memorandum of understanding.

(o) Solvent scheme of arrangement means a foreign or alien statutory or regulatory compromise procedure subject to requisite majority creditor approval and judicial sanction in the assuming insurer's domiciliary jurisdiction either to finally commute liabilities of duly noticed class members or creditors of a solvent debtor, or to reorganize or restructure the debts and obligations of a solvent debtor on a final basis, and that may be subject to judicial recognition and enforcement of the arrangement by a governing authority outside the ceding insurer's domiciliary jurisdiction.

(p) Statutory or regulatory compromise procedure means a judicial method prescribed by statute or regulation whereby a debtor may settle its obligations to creditors.

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