2006 New York Code - Admitted Assets.

 
    § 1301. Admitted assets. (a) In determining the financial condition of
  a  domestic  or  foreign insurer or the United States branch of an alien
  insurer for the purposes of  this  chapter,  there  may  be  allowed  as
  admitted  assets of such insurer, unless otherwise specifically provided
  in this chapter, only the following assets owned by such insurer:
    (1) Cash, including legal tender or the equivalent in  any  office  of
  such insurer or in transit under its control and the true balance of any
  deposit in a solvent bank, trust company or thrift institution.
    (2)  Investments  acquired  or  held in accordance with the applicable
  provisions of this chapter,  and  the  income  due  or  accrued  thereon
  subject  to  paragraphs  three  through  nine  hereof  as  to dividends,
  interest, rents and accrued taxes paid.
    (3) Declared and unpaid dividends on shares,  unless  the  amount  has
  otherwise been allowed as an admitted asset.
    (4)  Interest  due  or accrued upon a collateral loan in an amount not
  exceeding one year's interest.
    (5) Interest due or accrued on any evidence of indebtedness (except  a
  collateral loan) qualifying as an admitted asset which is not in default
  and is not valued on a basis including accrued interest.
    (6)  Interest  due  or  accrued on deposits in solvent banks and trust
  companies, and interest due or accrued on other admitted assets  if  the
  interest is in the superintendent's judgment a collectible asset.
    (7)  Interest due or accrued on any real estate mortgage loan which is
  an admitted asset, in an amount not exceeding the excess of the value of
  the property (less delinquent taxes) over the unpaid principal amount of
  the loan; but if any such interest is  in  default  more  than  eighteen
  months,  or  is  in  default  and  any tax or installment thereof on the
  property are due and unpaid for more than eighteen months, no  allowance
  shall be made for any unpaid interest on such loan.
    (8)  Rent  due  or accrued on real property if not in arrears for more
  than three months.
    (9) The unaccrued portion of taxes paid prior  to  due  date  on  real
  property  acquired  or used pursuant to paragraph five of subsection (a)
  of  section  one  thousand  four  hundred  four  or  paragraph  four  of
  subsection  (a)  of  section  one  thousand  four  hundred  five of this
  chapter, as the case may be.
    (10) Premium notes, policy loans and other policy assets and liens  on
  policies,  contracts  or  certificates  of  a  life insurance company or
  fraternal benefit society, in an amount not exceeding the legal  reserve
  and  other  policy  liabilities carried on each individual contract; the
  net amount of  uncollected  and  deferred  premiums,  considerations  or
  assessments  of  a  life  insurance  company  or  of a fraternal benefit
  society which carries the full mean tabular  reserve  liability;  for  a
  fraternal  benefit  society which does not carry such reserve liability,
  the net amount of uncollected premiums.
    (11) Premiums in course  of  collection,  other  than  life  insurance
  premiums,  not  more than ninety days past due, less commissions payable
  thereon. The foregoing limitation of ninety days shall not apply to: (i)
  premiums payable directly or indirectly by the United States  government
  or  any  of  its instrumentalities, (ii) reinsurance premiums payable by
  ceding insurers authorized to transact such business in this  state,  or
  (iii)  reinsurance  premiums  payable  which  may  be  offset by amounts
  carried by the assuming insurer as liabilities for amounts  due  to  the
  ceding  insurer  for  unpaid  losses  or  other  mutual  debts.  However
  reinsurance premiums more than ninety days past due shall not be allowed
  in excess of ten per centum of the reinsurer's total admitted assets  as
  shown  on  its most recent annual statement on file in the office of the
  superintendent pursuant to section three hundred seven of this chapter.
    (12) Instalment premiums,  other  than  life  insurance  premiums,  as
  prescribed by regulation.
    (13)  Notes  and  like  written  obligations,  not past due, taken for
  premiums other than life insurance premiums, on policies permitted to be
  issued on such basis, to the extent of  the  unearned  premium  reserves
  carried thereon except as otherwise prescribed by regulation.
    (14)  Reinsurance recoverable by a ceding insurer: (i) from an insurer
  authorized to transact such  business  in  this  state,  except  from  a
  captive insurance company licensed pursuant to the provisions of article
  seventy  of  this  chapter,  in  the  full  amount thereof; (ii) from an
  accredited reinsurer, as  defined  in  subsection  (a)  of  section  one
  hundred   seven   of   this  chapter,  to  the  extent  allowed  by  the
  superintendent on  the  basis  of  the  insurer's  compliance  with  the
  conditions of any applicable regulation; or (iii) from an insurer not so
  authorized  or  accredited  or from a captive insurance company licensed
  pursuant to the provisions of article seventy of  this  chapter,  in  an
  amount  not  exceeding the liabilities carried by the ceding insurer for
  amounts withheld under  a  reinsurance  treaty  with  such  unauthorized
  insurer or captive insurance company licensed pursuant to the provisions
  of  article  seventy  of  this  chapter  as  security for the payment of
  obligations thereunder if such funds are held subject to withdrawal  by,
  and  under the control of, the ceding insurer. Notwithstanding any other
  provision  of  this  chapter,  the  superintendent  may  by   regulation
  prescribe  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 accredited reinsurer, an
  insurer not authorized in this state  or  a  captive  insurance  company
  licensed pursuant to the provisions of article seventy of this chapter.
    (15) Amounts receivable by an assuming insurer for funds withheld by a
  ceding  insurer  under  a  reinsurance treaty, not exceeding the amounts
  carried by such assuming insurer as liabilities for  unpaid  losses  and
  reserves under such contracts.
    (16)  Amounts  receivable under a funding agreement issued pursuant to
  section three thousand two hundred twenty-two of this chapter.
    (17) Deposits or equities recoverable from underwriting  associations,
  syndicates   and   reinsurance   funds,   or   from   suspended  banking
  institutions, to the extent deemed by the superintendent  available  for
  the payment of losses and claims and at values determined by him.
    (18)  Electronic  data  processing  apparatus  and  related  equipment
  constituting a data processing, record keeping, or accounting system  if
  the  cost  of  each  such  system  is fifty thousand dollars or more and
  provided that such cost shall be amortized in full over a period not  to
  exceed ten years.
    (19)   Aircraft   if   prior   approval  has  been  secured  from  the
  superintendent pursuant to standards  prescribed  by  regulation,  which
  shall include, but in his discretion, not be limited to the following:
    (A) there is a reasonable need shown to acquire the aircraft;
    (B) the purchase price is in keeping with the prevailing cost scales;
    (C) the purchase price shall not exceed a prescribed percentage of the
  acquiring insurer's admitted assets; and
    (D) there shall be an orderly program of depreciation.
    (20)  Amounts  payable  to  the  insurer  from  the  property/casualty
  insurance security fund on behalf of insureds with  medical  malpractice
  insurance claims-made policies pursuant to subparagraph (G) of paragraph
  one  of  subsection  (a)  of section seven thousand six hundred three of
  this chapter.
    (21) Gross deferred tax assets, provided that  such  assets  shall  be
  deemed admitted to the extent provided by regulations promulgated by the
  superintendent in an amount not to exceed the sum of:
    (A)  federal  income  taxes  paid in prior years that can be recovered
  through loss carrybacks for existing temporary differences that  reverse
  by the end of the subsequent calendar year;
    (B) the lesser of:
    (i)  the  amount of gross deferred tax assets after the application of
  subparagraph (A) of this paragraph expected to be  realized  within  one
  year of the balance sheet date; or
    (ii)  ten  percent  of  the insurer's statutory capital and surplus as
  required to be shown  on  its  statutory  balance  sheet  for  its  most
  recently filed statement with the superintendent adjusted to exclude any
  net deferred tax assets; and
    (C)  the  amount  of  gross  deferred  tax assets after application of
  subparagraphs (A) and (B) of this paragraph that can be  offset  against
  existing gross deferred tax liabilities.
    (22)  Other  assets,  not  inconsistent with the foregoing provisions,
  deemed by the superintendent available for the  payment  of  losses  and
  claims, at values determined by him.
    (b)  Admitted  assets  may be allowed as deductions from corresponding
  liabilities, liabilities may be charged as deductions from  assets,  and
  deductions from assets may be charged as liabilities, in accordance with
  the form of annual statement applicable to such insurer as prescribed by
  the superintendent, or otherwise in his discretion.
    (c)  The superintendent may by regulation prescribe the application of
  the provisions of this section.