N.Y. Insurance Law 1114 – Reinsurance business
§ 1114. Reinsurance business. (a) Any domestic stock or mutual insurance corporation or reciprocal insurer may reinsure only the kinds of insurance business which it is licensed to do in this state or which it is otherwise authorized to reinsure by the terms of its license. Any such corporation may confine its business to reinsurance.
Terms Used In N.Y. Insurance Law 1114
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
(b) Any foreign or alien stock or mutual insurance corporation or reciprocal insurer may engage in this state in reinsurance of the kinds of insurance which it is licensed to do in this state. Any such corporation may confine its business to reinsurance.
(c) An insurer authorized by any provision of this chapter to engage in fidelity and surety insurance or reinsurance business may also guarantee performance of a contract insuring against physical damage to property in favor of mortgagees or other loss payees named in such contract, provided:
(1) It is authorized to engage in the kinds of insurance included in such contract;
(2) It has assumed reinsurance on the guaranteed contract in whole or in part;
(3) It is charged with such amount as part of its unearned premium reserve as may be prescribed by regulation of the superintendent not exceeding the amount it would be required to maintain in accordance with the provisions of this chapter if it were the direct insurer of the guaranteed risks; and
(4) If the property is located in this state, the ceding insurer is licensed to engage in the kinds of insurance included in such contracts.
(d) An insurer authorized by any provision of this chapter to do business of the kinds referred to in paragraph one, two or three of subsection (a) of section one thousand one hundred thirteen of this article may also reinsure, by itself, or together with other insurance companies subject to any regulations of the superintendent, any risk referred to in such subsection arising from, related to, or incident to the manufacture, ownership or operation of aircraft.
(e) Any health service corporation organized under article forty-three of this chapter is authorized to engage in reinsurance of policies of:
(1) any other corporation organized under article forty-three of this chapter;
(2) any health maintenance organization organized under Article 44 of the public health law; and
(3) long term care insurance issued by accident and health insurers organized under article forty-two of this chapter.