NY Ins L § 1301 (2021)
2021 New York Laws ISC - Insurance Article 13 - Assets and Deposits 1301 - Admitted Assets.

§ 1301. Admitted assets. (a) In determining the financial condition of a  domestic  or  foreign insurer or the United States branch of an alien insurer for the purposes of  this  chapter,  there  may  be  allowed  as admitted  assets of such insurer, unless otherwise specifically provided in this chapter, only the following assets owned by such insurer  (1) Cash, including legal tender or the equivalent in  any  office  of such insurer or in transit under its control and the true balance of any deposit in a solvent bank, trust company or thrift institution.  (2)  Investments  acquired  or  held in accordance with the applicable provisions of this chapter,  and  the  income  due  or  accrued  thereon subject to paragraphs three and four of this subsection as to dividends, interest, rents and accrued taxes paid.  (3)  Declared  and  unpaid  dividends on shares, unless the amount has otherwise been allowed as an admitted asset.  (4) Investment income due and accrued. Such amounts shall be  assessed for collectibility. If it is probable that the investment income due and accrued  balance  is  uncollectible, the amount shall be written off and shall  be  charged  against  investment  income  in  the   period   such determination  is  made. Any remaining investment income due and accrued (i.e., amounts considered probable of  collection)  representing  either (i)  amounts  that  are  over  ninety  days  past  due (generated by any invested asset except  mortgage  loans  in  default),  or  (ii)  amounts otherwise  designated as nonadmitted shall be considered nonadmitted. If a mortgage loan in default has interest one hundred eighty days past due that has been assessed as collectible, all interest shall be  considered a  nonadmitted  asset.  Such  nonadmitted  amounts  shall  be subject to continuing assessments  of  collectibility  and,  if  determined  to  be uncollectible,  a  write-off  shall  be  recorded  in  the  period  such determination is made. For purposes of this paragraph, "probable"  shall mean that the future event or events are likely to occur.  (5)  Premium  notes, policy loans and other policy assets and liens on policies, contracts or certificates  of  a  life  insurance  company  or fraternal  benefit society, in an amount not exceeding the legal reserve and other policy liabilities carried on each  individual  contract;  the net  amount  of  uncollected  and  deferred  premiums, considerations or assessments of a life  insurance  company  or  of  a  fraternal  benefit society  which  carries  the  full mean tabular reserve liability; for a fraternal benefit society which does not carry such  reserve  liability, the net amount of uncollected premiums.  (6)  Premiums  in  course  of  collection,  other  than life insurance premiums, not more than ninety days past due, less  commissions  payable thereon. The foregoing limitation of ninety days shall not apply to: (i) premiums  payable directly or indirectly by the United States government or any of its instrumentalities, (ii) reinsurance  premiums  payable  by ceding  insurers  authorized to transact such business in this state, or (iii) reinsurance premiums  payable  which  may  be  offset  by  amounts carried  by  the  assuming insurer as liabilities for amounts due to the ceding  insurer  for  unpaid  losses  or  other  mutual  debts.  However reinsurance premiums more than ninety days past due shall not be allowed in  excess of ten per centum of the reinsurer's total admitted assets as shown on its most recent annual statement on file in the office  of  the superintendent pursuant to section three hundred seven of this chapter.  (7)  Instalment  premiums,  other  than  life  insurance  premiums, as prescribed by regulation.  (8) Notes and like  written  obligations,  not  past  due,  taken  for premiums other than life insurance premiums, on policies permitted to be issued  on  such  basis,  to the extent of the unearned premium reserves carried thereon except as otherwise prescribed by regulation.  (9) Reinsurance recoverable by a ceding insurer: (i) from  an  insurer authorized  to  transact  such  business  in  this  state, except from a captive insurance company licensed pursuant to the provisions of article seventy of this chapter, in  the  full  amount  thereof;  (ii)  from  an accredited  reinsurer,  as  defined  in  subsection  (a)  of section one hundred  seven  of  this  chapter,  to  the  extent   allowed   by   the superintendent  on  the  basis  of  the  insurer's  compliance  with the conditions of any applicable regulation; or (iii) from an insurer not so authorized or accredited or from a captive  insurance  company  licensed pursuant  to  the  provisions  of article seventy of this chapter, in an amount not exceeding the liabilities carried by the ceding  insurer  for amounts  withheld  under  a  reinsurance  treaty  with such unauthorized insurer or captive insurance company licensed pursuant to the provisions of article seventy of this  chapter  as  security  for  the  payment  of obligations  thereunder if such funds are held subject to withdrawal by, and under the control of, the ceding insurer. Notwithstanding any  other provision   of  this  chapter,  the  superintendent  may  by  regulation prescribe the conditions under which a ceding  insurer  may  be  allowed credit,  as  an  asset  or as a deduction from loss and unearned premium reserves, for reinsurance recoverable from an accredited  reinsurer,  an insurer  not  authorized  in  this  state or a captive insurance company licensed pursuant to the provisions of article seventy of this chapter.  (10) Amounts receivable by an assuming insurer for funds withheld by a ceding insurer under a reinsurance treaty,  not  exceeding  the  amounts carried  by  such  assuming insurer as liabilities for unpaid losses and reserves under such contracts.  (11) Amounts receivable under a funding agreement issued  pursuant  to section three thousand two hundred twenty-two of this chapter.  (12)  Deposits or equities recoverable from underwriting associations, syndicates  and   reinsurance   funds,   or   from   suspended   banking institutions,  to  the extent deemed by the superintendent available for the payment of losses and claims and at values determined by him.  (13) (A) Electronic data processing apparatus  and  related  equipment constituting a data processing, record keeping, or accounting system and operating  system  software,  provided  that such assets shall be deemed admitted, subject to such regulations  as  may  be  promulgated  by  the superintendent in an amount not to exceed three percent of the insurer's capital  and surplus, or such other amount that the superintendent, in a regulation, determines to be appropriate in specified circumstances,  as required  to  be  shown  on  its  statutory  balance  sheet for its most recently filed statement with the superintendent adjusted to exclude any net positive goodwill, electronic data processing apparatus and  related equipment,  operating  system  software  and  net  deferred  tax assets, provided that electronic data processing apparatus and related equipment and operating system software shall be amortized over the lesser of  its useful  life  or  three  years.  Nonoperating  system  software shall be nonadmitted and depreciated over the lesser of its useful life  or  five years.  (B)  Notwithstanding  the  provisions  of  subparagraph  (A)  of  this paragraph, until December thirty-first, two thousand eleven,  electronic data  processing  apparatus  and  related  equipment constituting a data processing, record keeping, or accounting system  and  operating  system software  of  article  forty-three  corporations  and  public health law article forty-four health maintenance organizations, integrated delivery systems, prepaid health service plans and  comprehensive  special  needs plans  may be allowed as admitted assets if the cost of each such system is fifty thousand dollars or more and provided that such cost  shall  be amortized  over  a  period  not  to  exceed ten years. Effective January  first, two thousand twelve, the provisions of subparagraph (A)  of  this paragraph  shall  apply  to  article forty-three corporations and public health  law  article  forty-four   health   maintenance   organizations, integrated   delivery   systems,   prepaid   health  service  plans  and comprehensive special needs plans.  (14) Positive goodwill, provided  that  such  asset  shall  be  deemed admitted,  subject  to such limitations and conditions in regulations as may be promulgated by the superintendent in an amount not to exceed  ten percent  of the insurer's capital and surplus as required to be shown on its statutory balance sheet for its most recently filed  statement  with the  superintendent  adjusted  to  exclude  any  net  positive goodwill, electronic data processing apparatus and  related  equipment,  operating system  software  and net deferred tax assets, and provided further that such positive goodwill shall be amortized in full  over  the  period  in which  the  insurer benefits economically, not to exceed ten years. When negative goodwill exists, it shall be recorded as a contra-asset.  (15)  Amounts  payable  to  the  insurer  from  the  property/casualty insurance  security  fund on behalf of insureds with medical malpractice insurance claims-made policies pursuant to subparagraph (G) of paragraph one of subsection (a) of section seven thousand  six  hundred  three  of this chapter.  (16)  Gross  deferred  tax  assets, provided that such assets shall be deemed admitted to the extent provided by regulations promulgated by the superintendent in an amount not to exceed the sum of:  (A) federal income taxes paid in prior years  that  can  be  recovered through  loss carrybacks for existing temporary differences that reverse by the end of the subsequent calendar year;  (B) the lesser of:  (i) the amount of gross deferred tax assets after the  application  of subparagraph  (A)  of  this paragraph expected to be realized within one year of the balance sheet date; or  (ii) ten percent of the insurer's statutory  capital  and  surplus  as required  to  be  shown  on  its  statutory  balance  sheet for its most recently filed statement with the superintendent adjusted to exclude any net positive goodwill, electronic data processing apparatus and  related equipment, operating system software and net deferred tax assets; and  (C)  the  amount  of  gross  deferred  tax assets after application of subparagraphs (A) and (B) of this paragraph that can be  offset  against existing gross deferred tax liabilities.  (17)  Other  assets,  not  inconsistent with the foregoing provisions, deemed by the superintendent available for the  payment  of  losses  and claims, at values determined by the superintendent.  (18)  The superintendent may, be regulation, modify any requirement of this subsection to conform to any subsequent amendment to the accounting practices and procedures manual as adopted from  time  to  time  by  the national association of insurance commissioners.  (b)  Admitted  assets  may be allowed as deductions from corresponding liabilities, liabilities may be charged as deductions from  assets,  and deductions from assets may be charged as liabilities, in accordance with the form of annual statement applicable to such insurer as prescribed by the superintendent, or otherwise in his discretion.  (c)  The superintendent may by regulation prescribe the application of the provisions of this section.