Credit for Reinsurance from Unauthorized Insurers
(Effective on an emergency basis since 9/15/01:
Adopted on a permanent basis effective 4/9/03)
Insurance Law Sections 1301(a)(14) and 1301(c) gives the Superintendent the authority to prescribe, by regulation, 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 assuming insurer not authorized in this state.
This amendment implements minimum provisions of the National Association of Insurance Commissionersí model law relating to "Credit for Reinsurance." By modifying the requirements regarding when ceding insurers can take credit for certain reinsurance contracts, these new provisions will help maintain the insurerís financial stability, thereby safeguarding the interests of both insureds and the general public.