N.Y. Comp. Codes R. & Regs. tit. 11 § 125.1

Current through Register Vol. 46, No. 19, May 8, 2024

Section 125.1 - Preamble and applicability

(a)

(1) This Part sets forth the rules governing the admitted asset status of reinsurance recoverable by domestic insurers. Most significant in this regard are rules permitting credit for reinsurance for cessions to certified assuming insurers and reciprocal jurisdiction assuming insurers. The covered agreements between the United States and the European Union and between the United States and the United Kingdom mandate credit for reinsurance ceded to certain reciprocal jurisdiction assuming insurers. These covered agreements also eliminate security requirements on certain European Union-domiciled and United Kingdom-domiciled assuming insurers that reinsure business from United States-domiciled ceding insurers provided that certain regulatory criteria are met.

(2) This Part implements a reciprocal jurisdiction assuming insurer framework. In connection with a reciprocal jurisdiction assuming insurer framework, the NAIC publishes a list of jurisdictions for consideration by the states as reciprocal jurisdictions. The superintendent will publish a list of jurisdictions that are reciprocal jurisdictions under this Part and in so doing will include a jurisdiction that is a reciprocal jurisdiction as defined in section 125.2(n)(1) and (2) of this Part and will consider including any jurisdiction on the NAIC's list. The superintendent may also approve a jurisdiction that does not appear on the NAIC list by taking into consideration criteria published by the NAIC. The superintendent may remove a jurisdiction that is not a reciprocal jurisdiction from the superintendent's list upon a determination that the jurisdiction no longer meets one or more of the requirements, except the superintendent will not remove a jurisdiction that is a reciprocal jurisdiction as defined in section 125.2(n)(1) and (2) of this Part. Upon removal of a jurisdiction from the superintendent's list, credit for reinsurance ceded to an assuming insurer domiciled in that jurisdiction shall be allowed if otherwise allowed pursuant to section 125.4(c), (d), (g), (h) and section 125.5(a) of this Part.

(3) The superintendent also will publish a list of assuming insurers that have satisfied the conditions set forth in section 125.4(i)(2) of this Part and to which cessions shall be granted credit in accordance with section 125.4 of this Part. If an NAIC-accredited jurisdiction has determined that the conditions set forth in section 125.4(i)(2) of this Part have been met, then the superintendent may defer to that NAIC-accredited jurisdiction's determination and add such assuming insurer to the list of assuming insurers to which cessions shall be granted credit in accordance with section 125.4(i) of this Part. The superintendent may accept financial documentation filed with another NAIC-accredited jurisdiction or with the NAIC in satisfaction of the requirements of section 125.4(i)(2) of this Part. When requesting that the superintendent defer to another NAIC-accredited jurisdiction's determination, an assuming insurer shall submit the form prescribed by the superintendent pursuant to section 125.4(i)(2)(iv) of this Part and any additional information that the superintendent may require. Notwithstanding the foregoing, the superintendent will not impose any requirement that conflicts with an applicable covered agreement.

(b) This Part shall apply to insurers authorized to do business in this State, provided that if the state of domicile of an authorized ceding insurer is an NAIC-accredited jurisdiction , a qualified jurisdiction, or a reciprocal jurisdiction , then the authorized ceding insurer may take credit for the reinsurance.

N.Y. Comp. Codes R. & Regs. Tit. 11 § 125.1

Amended New York State Register September 29, 2021/Volume XLIII, Issue 39, eff. 9/29/2021