2023 New York Laws › ISC - Insurance › Article 11 - Licensing of Insurers › 1115 - Limitation of Risk, in General.

§  1115.  Limitation  of  risk,  in  general.  (a) Except as otherwise
provided in this chapter, no insurer doing business in this state  shall
expose  itself  to  any  loss on any one risk in an amount exceeding ten
percent of its surplus to policyholders. In determining  the  amount  of
risk, any portion reinsured in an assuming insurer authorized to do such
business  in  this  state  or  in an accredited reinsurer, as defined in
subsection (a) of section one hundred seven of this  chapter,  shall  be
deducted.  In  determining the limitation of risk under any provision of
this  chapter,  "surplus  to  policyholders"  shall  include   voluntary
reserves,  or  any  part thereof, not required by law, and be determined
from the insurer's last sworn statement on file with the superintendent,
or the last report on examination filed by the superintendent, whichever
is more recent at  the  time  the  risk  is  assumed.  In  applying  the
limitation  under  any provision of this chapter to alien insurers, such
provision shall be deemed to refer to the exposure to risk  and  to  the
surplus  to  policyholders  of  the  United  States branch of such alien
insurer.
(b) This section shall not apply to the  insurance  of  marine  risks,
marine protection and indemnity risks, workers' compensation, employers'
liability  risks,  mortgage  guaranty  risks,  financial guaranty risks,
risks insured for any dollar level  of  first  party  benefits  provided
pursuant  to  article  fifty-one of this chapter, certificates of title,
guaranties of title or policies of title insurance,  or  those  insurers
subject  to  the  provisions  of  subsection (c) of section two thousand
three hundred forty-three of this chapter.
(c) (1) An insurer, selling residual value  insurance  in  this  state
must  at  all  times  maintain surplus to policyholders in the aggregate
amount of no less than: (i) 0.3333 percent or 1/300th of  the  aggregate
net  liability  under  guaranties of commercial real estate; (ii) 0.6666
percent or 1/150th of the aggregate net liability  under  guaranties  of
commercial  transportation,  to  include, but not inclusively, aircraft,
helicopters, vessels and railcars; (iii) one percent or 1/100th  of  the
aggregate  net  liability  under  guaranties  of  commercial  industrial
equipment; (iv) with regard to all other residual value guarantees, four
percent or 1/25th of the aggregate net liability under such  guarantees.
For  purposes  of  subparagraphs  (i)  through  (iv)  of  this paragraph
residual value is defined  as  set  forth  in  paragraph  twenty-two  of
subsection  (a)  of  section  one  thousand one hundred thirteen of this
article   including   financial   transactions   demonstrated   to   the
satisfaction  of  the  superintendent  to  be  the functional equivalent
thereof.
(2) An insurer, selling residual value insurance in this  state  shall
limit its exposure on any one risk, net of collateral and reinsurance to
an  amount  not  to exceed ten percent of the aggregate of the insurer's
surplus to policyholders. For the purposes of this  section  reinsurance
must  be  placed  with an authorized or accredited reinsurer in New York
state. The credit for collateral shall not exceed fifty percent  of  the
appraised  value  of the underlying asset at the date in the future that
the value of the property is guaranteed.