reglab/statecodes huggingface dataset:
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter D - Reinsurance › Part 126 - Trust Agreements › Section 126.3 - Required conditions

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The
				  agreement must be in the form of a trust agreement made and entered into among
				  the beneficiary, the grantor and a bank. The bank must be either a member of
				  the Federal Reserve System, or a New York State-chartered bank or trust
				  company. Such bank shall be designated the trustee and shall not be a parent,
				  subsidiary or affiliate of the grantor or the beneficiary.
(b) The trust agreement must create a trust
				  account into which assets shall be deposited.
(c) All assets in the trust account must be
				  held by the trustee at the trustee's office in the United States, except that a
				  bank may apply for the superintendent's permission to use a foreign branch
				  office of such bank as trustee for trust agreements established pursuant to
				  subdivision (k) of this section. If the superintendent approves the use of such
				  foreign branch office as trustee, then its use must be approved in writing by
				  the beneficiary and the trust agreement must provide that the written notice
				  described in paragraph (d)(1) of this section must also be presentable, as a
				  matter of legal right, at the trustee's principal office in the United
				  States.
(d) The trust agreement
				  must be clean and unconditional, in that:
(1)
				  the trust agreement must stipulate that the beneficiary shall have the right to
				  withdraw assets from the trust account at any time, without notice to the
				  grantor, subject only to written notice from the beneficiary to the
				  trustee;
(2) no other statement or
				  document need be presented in order to withdraw assets, except the beneficiary
				  may be required to acknowledge receipt of withdrawn assets;
(3) the trust agreement must indicate that it
				  is not subject to any conditions or qualifications outside of the trust
				  agreement;
(4) the trust agreement
				  cannot contain references to any other agreements or documents; and
(5) no reference shall be made to the fact
				  that these funds may represent reinsurance premiums or that such funds have
				  been deposited for any specific purpose.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter D - Reinsurance › Part 126 - Trust Agreements › Section 126.4 - Permitted conditions

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The
				  trust agreement may provide that the trustee may resign upon delivery of a
				  written notice of resignation, effective not less than 90 days after receipt by
				  the beneficiary and grantor of the notice and that the trustee may be removed
				  by the grantor by delivery to the trustee and the beneficiary of a written
				  notice of removal, effective not less than 90 days after receipt by the trustee
				  and the beneficiary of the notice, provided that no such resignation or removal
				  shall be effective until a successor trustee has been duly appointed and
				  approved by the beneficiary and the grantor and all assets in the trust have
				  been duly transferred to the new trustee.
(b) The grantor may have the full and
				  unqualified right to vote any shares of stock in the trust account and to
				  receive from time to time payments of any dividends or interest upon any shares
				  of stock or obligations included in the trust account. Any such interest or
				  dividends shall be either forwarded promptly upon receipt to the grantor or
				  deposited in a separate account established in the grantor's name.
(c) The trustee may be given authority to
				  invest and accept substitutions of any funds in the account, provided that no
				  such investment or substitution shall be made without prior approval of the
				  beneficiary, unless the trust agreement specifies categories of investments
				  acceptable to the beneficiary and authorizes the trustee to invest such funds
				  and to accept such substitutions which the trustee determines are at least
				  equal in market value to the assets withdrawn. Such categories shall be
				  consistent with the restrictions in section
				  126.5(a)(2) 
				  of this Part.
(d) The trust
				  agreement may provide that the beneficiary may at any time designate a party to
				  which all or part of the trust assets are to be transferred. Such transfer may
				  be conditioned upon the trustee receiving, simultaneously, other specified
				  assets.
(e) The trust agreement may
				  provide that, upon termination of the trust account, all assets not previously
				  withdrawn by the beneficiary shall, with written approval by the beneficiary,
				  be delivered over to the grantor.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter D - Reinsurance › Part 126 - Trust Agreements › Section 126.6 - Financial reporting

Current through Register Vol. 46, No. 28, July 10, 2024
Funds withheld pursuant to a trust agreement may not be
					 used to reduce any liability for reinsurance ceded to an unauthorized reinsurer
					 in financial statements required to be filed with this department, unless a
					 trust account in compliance with the provisions of this Part, has been
					 established on or before the "as of date" of the financial statement of the
					 ceding insurer. Further, the reduction for the existence of an acceptable trust
					 account may be up to the current fair market value of acceptable assets
					 available to be withdrawn from the trust account at that time, but such
					 reduction shall be no greater than the specific obligations under the
					 reinsurance agreement that the trust account was established to secure or, as
					 respects reinsurance agreements covering life, annuity and accident and health
					 risks, the amount of reinsurance recoverables permitted in accordance with
					 section
					 125.5 
					 of this Title (Regulation No. 20).
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter D - Reinsurance › Part 126 - Trust Agreements › Section 126.7 - Existing agreements

Current through Register Vol. 46, No. 28, July 10, 2024
Notwithstanding the effective date of this Part, any trust
					 agreement or underlying reinsurance agreement in existence prior to April 6,
					 1988, which had previously been acceptable to this department:
(a) will continue to be acceptable, provided
				  no new business is ceded under the reinsurance agreement; or
(b) will continue to be acceptable until
				  January 1, 1989, at which time the agreements will have to be in full
				  compliance with this Part for the trust agreement to be acceptable. The failure
				  of the trust agreement to specifically identify the beneficiary, as defined in
				  section
				  126.2(a) 
				  of this Part, shall not be construed to affect any actions or rights which the
				  superintendent may take or possess pursuant to the provisions of the Insurance
				  Law or any other applicable statute.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter D - Reinsurance › Part 126 - Trust Agreements › Section 126.8 - Exemptions

Current through Register Vol. 46, No. 28, July 10, 2024
The required conditions contained in this Part shall not
					 apply to trust agreements:
(a)
				  established by an alien insurer pursuant to the provisions of section 1315 of
				  the New York Insurance Law; or
(b)
				  entered into by unauthorized insurers pursuant to the provisions of:
(1) sections
				  27.14  and
				  section
				  27.15  of
				  this Title (Regulation No. 41);
(2)
				  section
				  125.4 
				  of this Title (Regulation No. 20); or
(3) section
				  79.5 
				  of this Title (Regulation No. 133).
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter D - Reinsurance › Part 127 - Reinsurance Transactions By Authorized Life Insurers And Certain Other Authorized Insurers › Section 127.0 - Preamble

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The Insurance
				  Department recognizes that authorized insurers routinely enter into reinsurance
				  agreements that yield legitimate relief to ceding insurers from strain to
				  surplus.
(b) However, it is
				  improper for an authorized insurer, in the capacity of ceding insurer, to enter
				  into reinsurance agreements for the principal purpose of producing significant
				  surplus aid for the ceding insurer, while not transferring all the significant
				  risks inherent in the insurance policies being reinsured. In substance or
				  effect, the expected potential liability to the ceding insurer remains
				  basically unchanged by the reinsurance transaction, notwithstanding certain
				  risk elements in the reinsurance agreement, such as catastrophic mortality or
				  extraordinary survival.
(c) It is
				  the department's position that, except as provided in section
				  127.3  of this
				  Part, if an authorized ceding insurer takes reserve credit by reducing
				  liabilities or establishing assets for reinsurance ceded under the type of
				  reinsurance agreements referred to in subdivision (b) of this section and
				  described in section
				  127.2  of
				  this Part, that ceding insurer would:
(1)
				  violate section 1308 (c)  of the Insurance
				  Law;
(2) violate section 307 (a)  of the Insurance Law
				  by distorting its financial statements and not properly reflecting its
				  financial condition in accordance with sections 4217, 4218, 4221 and
				  4223  of the Insurance Law; and
(3) create a situation that may be hazardous
				  to policyholders and the people of this State.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter D - Reinsurance › Part 127 - Reinsurance Transactions By Authorized Life Insurers And Certain Other Authorized Insurers › Section 127.1 - Scope

Current through Register Vol. 46, No. 28, July 10, 2024
This Part shall apply to every authorized life and accident
					 and health insurer, and to every authorized property/casualty insurer with
					 respect to its accident and health insurance policies. This Part shall not
					 apply to assumption reinsurance, yearly renewable term reinsurance or
					 nonproportional reinsurance which is, or is substantially similar to, stop loss
					 or catastrophe reinsurance.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter D - Reinsurance › Part 127 - Reinsurance Transactions By Authorized Life Insurers And Certain Other Authorized Insurers › Section 127.3 - Written agreements

Current through Register Vol. 46, No. 28, July 10, 2024
(a) No
				  reinsurance agreement or amendment to an agreement may be used to take reserve
				  credit by reducing a liability or by establishing an asset in any financial
				  statement filed with the superintendent, unless the agreement, amendment or a
				  binding letter of intent has been duly executed by both parties no later than
				  the "as of date" of the financial statement.
(b) No credit shall be granted for
				  reinsurance ceded under a letter of intent unless a reinsurance agreement or an
				  amendment to a reinsurance agreement is executed within 90 days from the
				  execution date of the letter of intent.
(c) The reinsurance agreement shall provide
				  that:
(1) the agreement shall constitute the
				  entire agreement between the parties with respect to the insurance policies or
				  contracts reinsured and that there are no understandings between the parties
				  other than as expressed in the agreement; and
(2) any change or modification to the
				  agreement shall be null and void unless made by amendment to the agreement and
				  signed by both parties.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter D - Reinsurance › Part 127 - Reinsurance Transactions By Authorized Life Insurers And Certain Other Authorized Insurers › Section 127.4 - Existing agreements

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The
				  reduction of a liability or establishment of an asset with respect to a
				  reinsurance agreement entered into prior to the effective date of this Part
				  [September 1, 1993], which was in compliance with this Part in effect
				  immediately preceding the effective date of this Part, shall be reduced to zero
				  by December 31, 1993 in all financial statements filed with the superintendent
				  by the insurer, if under the provisions of this Part, the reduction of any
				  liability or establishment of any asset is no longer permitted.
(b) Section
				  127.2(a)(12) 
				  of this Part shall not apply until December 31, 1995 to any agreement in effect
				  on December 31, 1992 provided that:
(1) the
				  agreement has not been amended after December 31, 1992 to cover additional
				  policy forms or additional amounts of insurance;
(2) the agreement has not been amended after
				  December 31, 1992 with respect to any of the items of reimbursement specified
				  in section
				  127.2(a)(12) 
				  of this Part; and
(3) the approval
				  of the superintendent is not otherwise required pursuant to section
				  127.2(b) 
				  of this Part.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter D - Reinsurance › Part 128 - Commutation Of Reinsurance Agreements › Section 128.0 - Purpose

Current through Register Vol. 46, No. 28, July 10, 2024
Section 1321  of the Insurance Law authorizes the
					 Superintendent of Financial Services to permit an impaired or insolvent
					 domestic insurer or an impaired or insolvent United States branch of an alien
					 insurer entered through this state to commute reinsurance agreements as a means
					 of eliminating such an impairment or insolvency. This Part sets forth
					 applicable standards that the superintendent will use in determining whether
					 such commutations will be approved.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter D - Reinsurance › Part 128 - Commutation Of Reinsurance Agreements › Section 128.1 - Applicability

Current through Register Vol. 46, No. 28, July 10, 2024
This Part shall be applicable to any domestic insurer or
					 United States branch of an alien insurer entered through this state, other than
					 a life insurance company as defined in section 107 (a)(28)  of the Insurance
					 Law.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter D - Reinsurance › Part 128 - Commutation Of Reinsurance Agreements › Section 128.2 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
As used in this Part, the following terms shall have the
					 following meanings:
(a) Commutation
				  means the elimination of all present and future obligations between an assuming
				  insurer and a ceding insurer, arising from a reinsurance agreement, in exchange
				  for a current consideration.
(b)
				  Impaired or insolvent insurer means a domestic insurer or a United States
				  branch of an alien insurer entered through this State which is insolvent
				  pursuant to section 1309  of the Insurance Law or is impaired
				  pursuant to section 1310, 1311 or
				  1312  of the Insurance Law.
(c) Obligations, as used in subdivision (a)
				  of this section, shall mean:
(1) losses and
				  loss adjustment expenses paid by the ceding insurer, but not recovered from the
				  assuming insurer;
(2) reserves for
				  losses reported and outstanding;
(3) reserves for losses incurred but not
				  reported;
(4) reserves for loss
				  adjustment expenses related to losses reported and outstanding and to losses
				  incurred but not reported;
(5)
				  reserves for unearned premiums; and
(6) any other balances due under the
				  reinsurance agreement.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter D - Reinsurance › Part 128 - Commutation Of Reinsurance Agreements › Section 128.3 - General provisions

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
				  Nothing in this Part shall require the superintendent to give prior
				  consideration to a plan which contains the commutation of reinsurance
				  agreements in lieu of taking any other action against an impaired or insolvent
				  insurer in accordance with the Insurance Law, including proceeding against such
				  insurer pursuant to article 74 of the Insurance Law.
(b) All the terms and conditions of any plan
				  which contains the commutation of reinsurance agreements are subject to
				  approval by the superintendent and no such plan will be approved by the
				  superintendent unless the effect of the plan shall eliminate the insurer's
				  impairment or insolvency and restore the insurer's surplus to policyholders to
				  the greater of the minimum amount required to be maintained pursuant to the
				  applicable provisions of the Insurance Law or to the amount the superintendent
				  determines is adequate in relation to the insurer's outstanding liabilities or
				  financial needs. The determination regarding the adequacy of the insurer's
				  surplus to policyholders shall be made in accordance with the factors set forth
				  in section 1104 (c)  of the Insurance
				  Law.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter D - Reinsurance › Part 128 - Commutation Of Reinsurance Agreements › Section 128.4 - Requirements

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Any plan
				  submitted by an impaired or insolvent insurer which contains the commutation of
				  reinsurance agreements shall provide that:
(1) the offer to commute reinsurance
				  agreements is made to each and every ceding insurer to which the impaired or
				  insolvent insurer has obligations;
(2) the terms of the commutation agreement to
				  be offered to each and every ceding insurer are the same, except that the
				  percentage by which the impaired or insolvent insurer proposes to discount
				  obligations due to each ceding insurer may vary in regard to the type of
				  business being commuted. Any variance by type of business shall be reasonable,
				  actuarially sound and supported by documentation justifying such a variance;
				  and
(3) the impaired or insolvent
				  insurer agrees to enter into a stipulation with the superintendent consenting
				  to an order of rehabilitation or liquidation in the event that the
				  implementation of the plan by the insurer does not result in restoring the
				  insurer's surplus to policyholders to the minimum required as determined in
				  accordance with section
				  128.3(b) 
				  of this Part.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter D - Reinsurance › Part 128 - Commutation Of Reinsurance Agreements › Section 128.6 - Reporting requirements

Current through Register Vol. 46, No. 28, July 10, 2024
Any impaired or insolvent insurer which eliminates such
					 impairment or insolvency using commutations approved by the superintendent in
					 accordance with the provisions of this Part shall exclude all historical data
					 pertaining to such commutations from the loss development schedules contained
					 in future financial statements filed in accordance with applicable provisions
					 of the Insurance Law. The historical data pertaining to the business commuted
					 shall be reported on a supplemental loss development schedule in a form
					 consistent with the schedule contained in statutory financial statements as
					 filed with this department. The supplemental schedule shall show the aggregate
					 experience of such business as of the effective date of commutation
					 agreement.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter E - Property/casualty Insurance Security Fund › Part 130 - Property/casualty Insurance Security Fund; Contributions To Fund And Applicability Of Income Of Fund › Section 130.1 - Exclusion

Current through Register Vol. 46, No. 28, July 10, 2024
The kinds of insurance with respect to which contributions
					 under section 7603  of the Insurance Law are required
					 shall not include those as to which contributions are required pursuant to
					 section 7604.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter E - Property/casualty Insurance Security Fund › Part 130 - Property/casualty Insurance Security Fund; Contributions To Fund And Applicability Of Income Of Fund › Section 130.2 - Premium allocation

Current through Register Vol. 46, No. 28, July 10, 2024
Premiums upon which contributions are required shall, in
					 general, be allocated to New York on the basis of the location of the risk and
					 conform to the allocation of premiums in Schedule T of the Annual Statement.
					 Premiums on ocean marine business shall be allocated on the basis of the
					 location where the policy is negotiated or placed or, in the case of builders
					 risk coverage, on the basis of location of risk. Inland marine premiums shall
					 be allocated, when possible, on the basis of the location of the risk. If,
					 however, the property insured has no permanent situs, the premiums on such
					 risks shall be allocated on the basis of the address of the insured appearing
					 in the policy. In the case of extended exposure, inland marine premiums shall
					 be allocated to the place of principal exposure.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter E - Property/casualty Insurance Security Fund › Part 130 - Property/casualty Insurance Security Fund; Contributions To Fund And Applicability Of Income Of Fund › Section 130.3 - Contributions to fund

Current through Register Vol. 46, No. 28, July 10, 2024
Companies which choose to make their contribution to the
					 fund in the form of securities rather than cash shall adhere to the following
					 rules:
(a) Only "full faith and credit
				  obligations" issued by the United States, the State of New York or any
				  political subdivision of the State of New York.
(b) Such securities must be registered in the
				  name of the Commissioner of Taxation and Finance, State of New York, in trust
				  for the Property/Casualty Insurance Security Fund. Coupon or bearer securities
				  will not be accepted.
(c) The
				  market value at the time of contribution of securities with a maturity date of
				  five years or more from the date of contribution will be used to determine the
				  amount submitted. Both cash and securities may be submitted at the same time in
				  order to produce the amount of contribution required. Satisfactory proof of
				  market value must be submitted with the securities at the time of the
				  contribution. Such proof would ordinarily consist of evidence indicating the
				  purchase price within the month immediately preceding the date of contribution.
				  However, with respect to securities with a maturity date of less than five
				  years from the date of contribution, the value thereof for the purposes of
				  contribution shall be the amortized value thereof as shown for annual statement
				  purposes.
(d) Upon application to
				  the superintendent and his approval, the exchange or substitution of securities
				  contributed to this fund shall be allowed. Upon maturity of contributed
				  securities, the superintendent will reinvest the proceeds in securities
				  selected by the company making the original contribution, provided the company
				  notifies him in writing that it wishes to reinvest the proceeds in specifically
				  indicated securities. Such notification should be made at least 20 days before
				  the maturity date of the security and should be signed by an officer. The
				  security selected for reinvestment, exchange or substitution should conform in
				  all respects to the requirements herein described for initial contribution and
				  shall have a market value at least equal to that of the security being
				  replaced.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter E - Property/casualty Insurance Security Fund › Part 130 - Property/casualty Insurance Security Fund; Contributions To Fund And Applicability Of Income Of Fund › Section 130.4 - Applicability of income of fund

Current through Register Vol. 46, No. 28, July 10, 2024
Income earned on and after July 1, 1979; applicability to
					 deficit of New York Property Insurance Underwriting Association.
(a) Annually on or before each November 1st,
				  the superintendent shall estimate the amount of income to be earned by the
				  Property/Casualty Insurance Security Fund (hereinafter referred to as "the
				  fund") for the fiscal year beginning December 1st.
(b) Annually on or before each November 1st,
				  the New York Property Insurance Underwriting Association (hereinafter referred
				  to as "the association") shall estimate its deficit from operations for the
				  fiscal year beginning on December 1st, which shall be subject to the approval
				  of the superintendent. Deficit from operations of the association shall mean
				  the excess of loss over income after combining underwriting results with net
				  investment gain or loss (net investment income earned and net realized capital
				  gains or losses) and other income or losses. For the purposes of this section,
				  other income shall include those amounts which are the subject of section
				  130.5 
				  of this Part and which are due the association from any of its members, whether
				  or not assessed by the association.
(c) On or before the last day of January, and
				  on or before the last day of each succeeding month thereafter, the
				  superintendent shall certify to the Commissioner of Taxation and Finance the
				  amount of income to be credited to the association, and the Commissioner of
				  Taxation and Finance shall transfer such amount as soon as possible thereafter
				  to the association. The amount of income to be so credited and/or transferred
				  each month shall not exceed the lesser of:
(1) $1,250,000;
(2) the estimated amount of income earned
				  during the preceding month; or
(3)
				  1/12 of the estimated annual deficit of the association.
Notwithstanding the foregoing, upon a showing of an
					 emergency need by the association, the superintendent may authorize that any
					 income earned by the fund which is available within the association's current
					 fiscal period and which has not been transferred or credited within such
					 period, be credited and/or transferred to the association. However, in no event
					 shall such amount exceed the limit under section 5405 (d)  of the Insurance
					 Law.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter E - Property/casualty Insurance Security Fund › Part 130 - Property/casualty Insurance Security Fund; Contributions To Fund And Applicability Of Income Of Fund › Section 130.5 - Assessment by the association

Current through Register Vol. 46, No. 28, July 10, 2024
The association shall immediately establish and implement a
					 procedure acceptable to the superintendent to assess and collect from its
					 members, their respective shares of all amounts due relating to that portion of
					 any estimated deficit from operations approved by the superintendent, pursuant
					 to section 5405 (c)  of the Insurance
					 Law and remaining after application of the funds provided for by section 5405 (d)  of the Insurance
					 Law.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter E - Property/casualty Insurance Security Fund › Part 130 - Property/casualty Insurance Security Fund; Contributions To Fund And Applicability Of Income Of Fund › Section 130.6 - Application of section 7603

Current through Register Vol. 46, No. 28, July 10, 2024
The provisions of section 7603  of the Insurance Law shall apply to
					 all companies required to make contributions after September 1, 1969, except
					 that the provisions in respect to the payment of claims shall apply only to
					 those companies judicially determined insolvent by order entered after
					 September 1, 1969.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter F - Public Retirement Systems › Part 136 - Public Retirement Systems › Subpart 136-1 - Standards For Certain Actuarially Funded Public Retirement System › Section 136-1.1 - Preamble

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Subsection (b)
					 of section 314  of the Insurance Law authorizes the
					 Superintendent of Financial Services to promulgate certain standards with
					 respect to the public retirement and pension systems of the State of New York
					 or of a municipality thereof. Specifically, subsection (b) provides as
					 follows:
"(b) Notwithstanding any
					 other provision of law to the contrary, the superintendent shall have, in
					 addition to any other powers conferred upon him by law, the following authority
					 with respect to any system:
* * *
(2) to
					 promulgate and amend from time to time, after consultation with the
					 administrative heads of systems and after a public hearing, standards with
					 respect to actuarial assumptions, accounting practices, administrative
					 efficiency, discharge of fiduciary responsibilities, investment policies and
					 financial soundness."
(b)
					 This Subpart is designed to implement, with respect to certain of the public
					 retirement and pension systems, the legislative intent contained in the
					 foregoing.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter F - Public Retirement Systems › Part 136 - Public Retirement Systems › Subpart 136-1 - Standards For Certain Actuarially Funded Public Retirement System › Section 136-1.2 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
The following words and phrases, as used in this Subpart,
						unless a different meaning is plainly required by the context, shall have the
						following meanings:
(a) Retirement
					 system shall mean, as the context may require, any of the following public
					 employee retirement systems:
(1) the New York
					 State Teachers' Retirement System;
(2) the New York City Employees' Retirement
					 System;
(3) the Police Pension
					 Fund, article 2 (New York City);
(4) the Fire Department Pension Fund, article
					 1-B (New York City);
(5) the New
					 York City Teachers' Retirement System; and
(6) the Board of Education Retirement System
					 of the City of New York.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter F - Public Retirement Systems › Part 136 - Public Retirement Systems › Subpart 136-1 - Standards For Certain Actuarially Funded Public Retirement System › Section 136-1.4 - Accounting practices

Current through Register Vol. 46, No. 28, July 10, 2024
(a) All
					 records, including work papers for the preparation of the annual statement
					 filed with the Insurance Department, shall be available to the department's
					 examiners and shall not be destroyed unless authorized by the superintendent in
					 writing.
(b) Books of account and
					 records of each retirement system shall be maintained by fiscal years for which
					 the system files its reports, in permanent and legible form and in such
					 condition that legible copies can be reproduced from them.
(c) Each system shall maintain a
					 classification of its accounts, numbered and titled, together with an accurate
					 description of the content of each account by debit and credit. Such
					 classification of accounts shall be consistent with the requirements of the
					 annual statement form prescribed by the superintendent.
(d) Each system shall maintain records which
					 set forth the expenses incurred by it or on its behalf in the course of its
					 operations.
(e) No authorization
					 for a disbursement shall be valid unless signed by two signatories designated
					 by the administrative head.
(f)
					 Monthly bank reconciliations shall be prepared by persons other than those
					 handling receipts and disbursements.
(g) Each system shall have on its staff an
					 internal auditor who shall report directly to the administrative head and shall
					 submit to the administrative head regular reports of the audits of the system's
					 records and accounting procedures including recommendations for improvement and
					 correction.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter F - Public Retirement Systems › Part 136 - Public Retirement Systems › Subpart 136-1 - Standards For Certain Actuarially Funded Public Retirement System › Section 136-1.6 - Discharge of fiduciary responsibilities

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The administrative heads are fiduciaries
					 and as such shall act solely in the interests of the members and beneficiaries
					 of the systems they administer. They shall perform their responsibilities in a
					 manner consistent with those of a reasonably prudent person exercising care,
					 skill and caution.
(b) The assets
					 of a system shall at all times be under the control of the administrative
					 head.
(c) No investment or loan
					 transaction shall be made by a system unless the same has been approved by the
					 administrative head. The administrative head may delegate its powers of
					 investment to a committee or agent of the administrative head within
					 well-defined established guidelines. Such committee or agent shall render
					 timely written reports of its activities to the administrative head under a
					 schedule to be established by the administrative head and shall render special
					 reports whenever requested by the administrative head.
(d) In respect to the delegation of
					 investment powers, the administrative head shall periodically review:
(1) the present holdings in the investment
					 account;
(2) any marked changes in
					 the account during the preceding period;
(3) the reasons for such changes and the
					 results achieved thereby;
(4) the
					 investment activity in the account including the rate of turnover;
					 and
(5) any other factors the
					 administrative head considers pertinent to an analysis of the financial
					 performance and planning, consistent with its obligation as a
					 fiduciary.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter F - Public Retirement Systems › Part 136 - Public Retirement Systems › Subpart 136-1 - Standards For Certain Actuarially Funded Public Retirement System › Section 136-1.9 - Implementation

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Failure to
					 implement provisions of applicable law shall be regarded as a breach of
					 fiduciary responsibility.
(b) Any
					 administrative head, executive or employee of a pension system subject to
					 supervision by the Superintendent of Insurance who wilfully violates or
					 knowingly participates in a violation of any standard promulgated pursuant to
					 section 314  of the Insurance Law shall be guilty of
					 a breach of fiduciary responsibility.
(c) In any case where, after notice and a
					 hearing, the superintendent finds that any public pension fund has been
					 depleted by reason of any wrongful or negligent act or omission of the
					 administrative head, executive, employee or any other person having a fiduciary
					 responsibility for a fund, he may transmit a copy of his findings to the
					 Attorney General, who may proceed according to statute.
(d) The Superintendent of Insurance may,
					 after notice and hearing, transmit a finding of breach of fiduciary
					 responsibility to the person or organization empowered to remove said trustee
					 or other person.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter F - Public Retirement Systems › Part 136 - Public Retirement Systems › Subpart 136-2 - Standards For The New York State And Local Employees' Retirement System, The New York State And Local Police And Fire Retirement System And The New York State Common Retirement Fund › Section 136-2.1 - Purpose

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Section 314 (b)  of the Insurance Law
					 authorizes the Superintendent of Financial Services to promulgate certain
					 standards with respect to the public retirement and pension systems of the
					 State of New York or of a municipality thereof. Specifically, subsection (b)
					 states as follows:
"(b)
					 Notwithstanding any other provision of law to the contrary, the superintendent
					 shall have, in addition to any other powers conferred upon him by law, the
					 following authority with respect to any system:
***
(2) to
					 promulgate and amend from time to time, after consultation with the
					 administrative heads of systems and after a public hearing, standards with
					 respect to actuarial assumptions, accounting practices, administrative
					 efficiency, discharge of fiduciary responsibilities, investment policies and
					 financial soundness..."
(b) This subpart establishes standards for
					 the management of the New York State and Local Employees' Retirement System and
					 the New York State and Local Police and Fire Retirement System (hereinafter,
					 collectively, "the retirement system"), and the New York State Common
					 Retirement Fund (hereinafter "the fund"). These standards are intended to
					 assure that the conduct of the business of the retirement system and the fund,
					 and of the State Comptroller (as administrative head of the retirement system
					 and as sole trustee of the fund) are consistent with the following principles:
(1) the retirement system and the fund shall
					 operate under a strong governance framework with a rigorous system of internal
					 controls;
(2) the retirement system
					 and the fund shall maintain a high level of operational transparency;
(3) the Comptroller shall adhere to and
					 manage the retirement system and the fund with the highest ethical,
					 professional and conflict of interest standards;
(4) the Comptroller shall have a fiduciary
					 responsibility to act for the sole benefit of the retirement system's members
					 and beneficiaries; and
(5) the
					 retirement system and the fund shall be managed in the most efficient and
					 effective manner possible.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter F - Public Retirement Systems › Part 136 - Public Retirement Systems › Subpart 136-2 - Standards For The New York State And Local Employees' Retirement System, The New York State And Local Police And Fire Retirement System And The New York State Common Retirement Fund › Section 136-2.3 - Fiduciary responsibilities

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
					 The Comptroller is a fiduciary and as such shall act solely in the interests of
					 the members and beneficiaries of the retirement system. At all times the
					 Comptroller shall perform his or her responsibilities with the care, skill,
					 prudence and diligence under the circumstances then prevailing that a prudent
					 person acting in a like capacity and familiar with such matters would use in
					 the conduct of an enterprise of a like character and with like aims.
(b) The fund shall at all times be under the
					 control of the Comptroller, who shall adopt an investment policy statement and
					 any amendments to such as needed. Key elements of an investment policy
					 statement shall include, without limitation:
(1) investment purpose;
(2) investment objectives;
(3) roles and responsibilities of the
					 Comptroller, and the Comptroller's staff and committees, with respect to
					 investments of the assets of the fund;
(4) investment guidelines and limits
					 encompassing all types of investments;
(5) asset allocation targets, including
					 procedures for rebalancing;
(6)
					 standards for measuring investment performance and evaluating investment risk;
					 and
(7) any other guidelines
					 adopted by the Comptroller with respect to specific investment related issues,
					 including, but not limited to, securities lending, proxy voting, brokerage, and
					 securities litigation.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter F - Public Retirement Systems › Part 136 - Public Retirement Systems › Subpart 136-2 - Standards For The New York State And Local Employees' Retirement System, The New York State And Local Police And Fire Retirement System And The New York State Common Retirement Fund › Section 136-2.4 - Governance responsibilities and ethics provisions

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Committees.
(1) The Comptroller shall appoint committees
					 required by statute, regulation, or executive order of the Comptroller,
					 including but not limited to, the Investment Advisory Committee and the Real
					 Estate Advisory Committee (also known as the Mortgage Advisory Committee)
					 required by section 423  of the Retirement and Social Security
					 Law. The Comptroller shall establish and administer written ethical standards
					 applicable to the members of such committees. The ethical standards shall
					 establish a financial disclosure and conflicts of interest process designed to
					 ensure that decisions are made for the benefit of the retirement system members
					 and beneficiaries. Such ethical standards shall be published on the OSC public
					 website.
(2) The Comptroller shall
					 authorize the investment advisory committee to review the investment policy
					 statement and offer advice regarding amendments to the investment policy
					 statement as needed.
(3) The
					 Comptroller shall develop a process to receive and investigate complaints from
					 any source, or upon his or her own initiative, concerning allegations of
					 corruption, fraud, criminal activity, conflicts of interest or abuse by a
					 committee member. The process shall be set forth in written guidelines and such
					 guidelines shall be published on the OSC public website.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter F - Public Retirement Systems › Part 136 - Public Retirement Systems › Subpart 136-2 - Standards For The New York State And Local Employees' Retirement System, The New York State And Local Police And Fire Retirement System And The New York State Common Retirement Fund › Section 136-2.5 - Transparency and financial reporting

Current through Register Vol. 46, No. 28, July 10, 2024
(a) All records, including work papers for
					 the preparation of the annual statement filed with the superintendent, shall be
					 available to the department's examiners and be maintained in accordance with
					 the requirements of 11 NYCRR Part 243 (Regulation No. 152).
(b) The Comptroller shall require that all
					 agreements with consultants or advisors, investment managers, or third party
					 administrators include provisions that require the person or entity to:
(1) submit to a review by the superintendent
					 concerning fees paid by the fund and services rendered to the fund;
					 and
(2) respond in writing to any
					 inquiry or request for information by the superintendent concerning fees paid
					 by the fund and services rendered to the fund.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter F - Public Retirement Systems › Part 136 - Public Retirement Systems › Subpart 136-2 - Standards For The New York State And Local Employees' Retirement System, The New York State And Local Police And Fire Retirement System And The New York State Common Retirement Fund › Section 136-2.6 - Financial soundness and actuarial principles

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Consistent with his or her obligations as
					 a fiduciary, the Comptroller shall establish an actuarial committee comprised
					 exclusively of unaffiliated persons that have expertise and experience in
					 actuarial science.
(b) The
					 Comptroller shall:
(1) develop an actuarial
					 committee charter for the committee;
(2) establish written standards for the
					 selection of actuarial committee members;
(3) authorize the actuarial committee to make
					 recommendations to the retirement system actuary regarding actuarial
					 assumptions and methodologies; and
(4) authorize the actuarial committee to
					 review and report to the Comptroller on the financial soundness of the
					 retirement system.