New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter VI - AUTHORIZED INVESTMENTS
Part 178 - DERIVATIVE TRANSACTIONS
Section 178.0 - Purposes
Current through Register Vol. 46, No. 39, September 25, 2024
The purposes of this Part, with respect to derivative instruments used to engage in hedging, replication and certain limited income generation transactions, authorized pursuant to section 1410 of the Insurance Law, are to:
(a) define certain terms;
(b) establish the content of the derivative use plan to be submitted by an insurer to the superintendent;
(c) establish effective management oversight standards, including quarterly reporting to the board of directors or a committee thereof charged with the responsibility for supervising investments;
(d) require that the insurer establish adequate systems of internal control and reporting to ensure that derivative transactions are properly supervised and that transactions are in accordance with the insurer' s authorized policies and procedures;
(e) establish documentation and reporting requirements; and
(f) establish appropriate accounting standards.
