New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter IV - Financial Condition Of Insurer and Reports to Superintendent
Subchapter E - Property/casualty Insurance Security Fund
Part 130 - Property/casualty Insurance Security Fund; Contributions To Fund And Applicability Of Income Of Fund
Section 130.3 - Contributions to fund
Current through Register Vol. 46, No. 39, September 25, 2024
Companies which choose to make their contribution to the fund in the form of securities rather than cash shall adhere to the following rules:
(a) Only "full faith and credit obligations" issued by the United States, the State of New York or any political subdivision of the State of New York.
(b) Such securities must be registered in the name of the Commissioner of Taxation and Finance, State of New York, in trust for the Property/Casualty Insurance Security Fund. Coupon or bearer securities will not be accepted.
(c) The market value at the time of contribution of securities with a maturity date of five years or more from the date of contribution will be used to determine the amount submitted. Both cash and securities may be submitted at the same time in order to produce the amount of contribution required. Satisfactory proof of market value must be submitted with the securities at the time of the contribution. Such proof would ordinarily consist of evidence indicating the purchase price within the month immediately preceding the date of contribution. However, with respect to securities with a maturity date of less than five years from the date of contribution, the value thereof for the purposes of contribution shall be the amortized value thereof as shown for annual statement purposes.
(d) Upon application to the superintendent and his approval, the exchange or substitution of securities contributed to this fund shall be allowed. Upon maturity of contributed securities, the superintendent will reinvest the proceeds in securities selected by the company making the original contribution, provided the company notifies him in writing that it wishes to reinvest the proceeds in specifically indicated securities. Such notification should be made at least 20 days before the maturity date of the security and should be signed by an officer. The security selected for reinvestment, exchange or substitution should conform in all respects to the requirements herein described for initial contribution and shall have a market value at least equal to that of the security being replaced.
