Current through Register Vol. 46, No. 39, September 25, 2024
In addition to the conditions specified in sections
125.4 and
125.5 of this Part:
(a) Where a ceding insurer obtains
reinsurance through a "reinsurance intermediary," as defined in section
2101
(f) of the Insurance Law, from an assuming
insurer which is neither licensed in this State nor has placed funds with the
ceding insurer pursuant to section
1301
(a)(9) of the Insurance Law, the ceding
insurer shall not be allowed credit unless:
(1) the reinsurance agreement includes a
provision whereby the reinsurer assumes all credit risks of the intermediary
related to payments to the intermediary; and
(2) in the case of a reinsurance intermediary
acting outside this State, the ceding insurer obtains a written agreement from
the reinsurance intermediary that the intermediary will comply with all of the
provisions of Part 32 of this Title (Regulation No. 98) and the intermediary
agrees to be subject to examination by the superintendent as often as the
superintendent may deem it expedient; except such intermediary may deposit
funds received in a bank or banks not authorized to do business in this State,
if:
(i) such bank is chartered within the
United States; or
(ii) such bank,
as designated by a non-United States reinsurance intermediary, is located
outside of the United States; provided written consent is obtained from the
ceding insurer.
(b) Other than as permitted pursuant to
sections 125.4(e), (f) and
(g) for risks other than life, annuity and
accident and health, or section
125.4(h) and (i)
of this Part, credit taken by a ceding insurer for reinsurance ceded to an
unauthorized assuming insurer, which is not an accredited, certified, or
reciprocal jurisdiction assuming insurer, shall not exceed the amounts withheld
under a reinsurance treaty with such unauthorized insurer as security for the
payment of obligations thereunder, provided such funds are held subject to
withdrawal by, and under the control of, the ceding insurer. Amounts withheld
include:
(1) For reinsurance treaties other
than those entered into on or after January 1, 2015 ceding term life insurance
or universal life insurance with secondary guarantees or those entered into
prior to January 1, 2015 ceding term life insurance or universal life insurance
with secondary guarantees issued on or after January 1, 2015:
(i) funds withheld for which the ceding
insurer has set up a liability;
(ii) letters of credit complying with Part 79
of this Title (Insurance Regulation 133); and
(iii) funds deposited in trust agreements
complying with Part 126 of this Title (Insurance Regulation 114);
and
(2) For a reinsurance
treaty entered into on or after January 1, 2015 ceding term life insurance or
universal life insurance with secondary guarantees or a reinsurance treaty
entered into prior to January 1, 2015 ceding term life insurance or universal
life insurance with secondary guarantees issued on or after January 1, 2015,
any security listed in paragraph (1) of this subdivision that meets the
requirements of the National Association of Insurance Commissioners' Actuarial
Guideline XLVIII.1
