State of New York to Allow Credit for Reinsurance Under Certain Circumstances as of January 1, 2011
Dec 6, 2010
As of January 1, 2011, the State of New York will allow domestic insurers to take full financial credit for reinsurance ceded to “approved” unauthorized reinsurers that post less than 100 percent collateral at the discretion of the New York Superintendent of Insurance under the provisions of a recently adopted amendment to New York insurance regulations.
To view the amendment, click here.
Various requirements will have to be met in order for the Superintendent to exercise his discretion to authorize full credit for reinsurance ceded to New York unauthorized reinsurers. The amount of collateral that has to be posted will be based on a number of factors, including the reinsurer’s credit rating.
To view various comments submitted on the amendment during the regulatory process, as well as New York’s actions upon each, click here.
Should you have any questions or comments, please contact Colodny Fass.