New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter D - Reinsurance › Part 125 - Credit For Reinsurance › Section 125.1 - Preamble and applicability

Current through Register Vol. 46, No. 28, July 10, 2024
(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.