New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter IV - Financial Condition Of Insurer and Reports to Superintendent
Subchapter D - Reinsurance
Part 128 - Commutation Of Reinsurance Agreements
Section 128.2 - Definitions

Universal Citation: 11 NY Comp Codes Rules and Regs ยง 128.2

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

As used in this Part, the following terms shall have the following meanings:

(a) Commutation means the elimination of all present and future obligations between an assuming insurer and a ceding insurer, arising from a reinsurance agreement, in exchange for a current consideration.

(b) Impaired or insolvent insurer means a domestic insurer or a United States branch of an alien insurer entered through this State which is insolvent pursuant to section 1309 of the Insurance Law or is impaired pursuant to section 1310, 1311 or 1312 of the Insurance Law.

(c) Obligations, as used in subdivision (a) of this section, shall mean:

(1) losses and loss adjustment expenses paid by the ceding insurer, but not recovered from the assuming insurer;

(2) reserves for losses reported and outstanding;

(3) reserves for losses incurred but not reported;

(4) reserves for loss adjustment expenses related to losses reported and outstanding and to losses incurred but not reported;

(5) reserves for unearned premiums; and

(6) any other balances due under the reinsurance agreement.

(d) Plan means any proposal submitted by an insurer which is intended to eliminate an impairment or insolvency.

(e) Retrocessionaire means any insurer which reinsures any or all of the business that the impaired or insolvent insurer has assumed from a ceding insurer pursuant to a reinsurance agreement proposed to be commuted.

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