N.Y. ISC Law § 1115 — New York Code / Act ISC / Article 11 / Section 1115
Limitation of risk, in general
Status: in_force

§ 1115. Limitation of risk, in general. (a) Except as otherwise\nprovided in this chapter, no insurer doing business in this state shall\nexpose itself to any loss on any one risk in an amount exceeding ten\npercent of its surplus to policyholders. In determining the amount of\nrisk, any portion reinsured in an assuming insurer authorized to do such\nbusiness in this state or in an accredited reinsurer, as defined in\nsubsection (a) of section one hundred seven of this chapter, shall be\ndeducted. In determining the limitation of risk under any provision of\nthis chapter, "surplus to policyholders" shall include voluntary\nreserves, or any part thereof, not required by law, and be determined\nfrom the insurer's last sworn statement on file with the superintendent,\nor the last report on examination filed by the superintendent, whichever\nis more recent at the time the risk is assumed. In applying the\nlimitation under any provision of this chapter to alien insurers, such\nprovision shall be deemed to refer to the exposure to risk and to the\nsurplus to policyholders of the United States branch of such alien\ninsurer.\n  (b) This section shall not apply to the insurance of marine risks,\nmarine protection and indemnity risks, workers' compensation, employers'\nliability risks, mortgage guaranty risks, financial guaranty risks,\nrisks insured for any dollar level of first party benefits provided\npursuant to article fifty-one of this chapter, certificates of title,\nguaranties of title or policies of title insurance, or those insurers\nsubject to the provisions of subsection (c) of section two thousand\nthree hundred forty-three of this chapter.\n  (c) (1) An insurer, selling residual value insurance in this state\nmust at all times maintain surplus to policyholders in the aggregate\namount of no less than: (i) 0.3333 percent or 1/300th of the aggregate\nnet liability under guaranties of commercial real estate; (ii) 0.6666\npercent or 1/150th of the aggregate net liability under guaranties of\ncommercial transportation, to include, but not inclusively, aircraft,\nhelicopters, vessels and railcars; (iii) one percent or 1/100th of the\naggregate net liability under guaranties of commercial industrial\nequipment; (iv) with regard to all other residual value guarantees, four\npercent or 1/25th of the aggregate net liability under such guarantees.\nFor purposes of subparagraphs (i) through (iv) of this paragraph\nresidual value is defined as set forth in paragraph twenty-two of\nsubsection (a) of section one thousand one hundred thirteen of this\narticle including financial transactions demonstrated to the\nsatisfaction of the superintendent to be the functional equivalent\nthereof.\n  (2) An insurer, selling residual value insurance in this state shall\nlimit its exposure on any one risk, net of collateral and reinsurance to\nan amount not to exceed ten percent of the aggregate of the insurer's\nsurplus to policyholders. For the purposes of this section reinsurance\nmust be placed with an authorized or accredited reinsurer in New York\nstate. The credit for collateral shall not exceed fifty percent of the\nappraised value of the underlying asset at the date in the future that\nthe value of the property is guaranteed.\n