Statutes, codes, and regulations
New York Codes, Rules and Regulations
Title 11 - INSURANCEChapter IV - Financial Condition Of Insurer and Reports to SuperintendentSubchapter A - Rules of General Application
Part 82 - Enterprise Risk Management And Own Risk And Solvency Assessment
Section 82.3 - Own risk and solvency assessment

N.Y. Comp. Codes R. & Regs. tit. 11 § 82.3

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Current through Register Vol. 46, No. 36, September 4, 2024
Section 82.3 - Own risk and solvency assessment
(a) Except as provided in subdivision (c) of this section, a domestic insurer shall conduct regularly an own risk and solvency assessment consistent with the process set forth in the ORSA guidance manual. A domestic insurer also shall conduct an ORSA any time there are significant changes to the domestic insurer's risk profile, but no less than annually. A domestic insurer may satisfy this subdivision if the holding company system, article 16 system, or article 17 system of which it is a member conducts an ORSA consistent with this subdivision.
(b)
(1) Except as provided in subdivision (c) of this section, a domestic insurer shall submit electronically to the superintendent annually, but no later than December 1st, starting in 2015, an ORSA summary report or any combination of ORSA summary reports that together contain the information described in the ORSA guidance manual, applicable to the domestic insurer and/or the holding company system, article 16 system, or article 17 system of which it is a member. The domestic insurer also shall submit to the superintendent one hard copy of the ORSA summary report due in 2015. The ORSA summary report shall be prepared consistent with the ORSA guidance manual. A domestic insurer shall maintain and make available documentation and supporting information upon examination or upon the superintendent's request.
(2) A domestic insurer may comply with paragraph (1) of this subdivision by submitting to the superintendent the most recent and substantially similar ORSA summary report or reports provided by the domestic insurer or another member of the domestic insurer's holding company system, article 16 system, or article 17 system to the head insurance regulator of another state or to a supervisor or regulator of a foreign jurisdiction, if the ORSA summary report or reports provide information that is comparable to the information described in the ORSA guidance manual. Any report in a language other than English shall be accompanied by a translation of the report into the English language.
(3) An ORSA summary report shall include the signature of the chief risk officer or other executive having responsibility for the oversight of the enterprise risk management function, attesting to the best of his or her knowledge and belief that the domestic insurer or another member of the domestic insurer's holding company system, article 16 system, or article 17 system applies the enterprise risk management function described in the ORSA summary report and that a copy of the report has been provided to the domestic insurer's or member's board of directors or the appropriate committee thereof, or if there is no board of directors, then to the insurer's or member's governing body.
(c)
(1) A domestic insurer shall be exempt from this section if:
(i) the domestic insurer has annual direct written and unaffiliated assumed premium, including international direct and assumed premium, but excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Insurance Program, of less than $500 million; and
(ii) where the domestic insurer is a member of a holding company system, article 16 system, or article 17 system, the system has annual direct written and unaffiliated assumed premium, including international direct and assumed premium, but excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Insurance Program, of less than $1 billion.
(2) If a domestic insurer qualifies for an exemption pursuant to subparagraph (1)(i) of this subdivision, but the holding company system, article 16 system, or article 17 system of which the domestic insurer is a member does not qualify for the exemption pursuant to subparagraph (1)(ii) of this subdivision, then the ORSA summary report shall include every insurer within the holding company system, article 16 system, or article 17 system. A domestic insurer may satisfy this requirement by submitting more than one ORSA summary report for any combination of insurers, provided that any combination of reports includes every insurer within the holding company system, article 16 system, or article 17 system.
(3) If a domestic insurer does not qualify for an exemption pursuant to subparagraph (1)(i) of this subdivision, but the holding company system, article 16 system, or article 17 system of which it is a member qualifies for an exemption pursuant to subparagraph (1)(ii) of this subdivision, then the ORSA summary report only shall include that domestic insurer.
(4) A domestic insurer that does not qualify for an exemption pursuant to paragraph (1) of this subdivision may apply to the superintendent for a waiver from the requirements of this section based upon unique circumstances. In deciding whether to grant the domestic insurer's request for a waiver, the superintendent may consider the type and volume of business written, ownership and organizational structure, and any other factor the superintendent considers relevant to the domestic insurer or holding company system, article 16 system, or article 17 system of which the domestic insurer is a member. If the domestic insurer is part of a holding company system, article 16 system, or article 17 system with insurers domiciled in more than one state, then the superintendent may consult with the head insurance regulators of the other states when considering whether to grant the domestic insurer's request for a waiver.
(5) Notwithstanding the exemptions stated in this subdivision the superintendent may require that a domestic insurer conduct an ORSA and file an ORSA summary report:
(i) based upon unique circumstances, including the type and volume of business written, ownership and organizational structure, Federal agency requests, and international supervisor requests;
(ii) if a domestic insurer subject to Insurance Law section 1322 or 1324 has a risk-based capital level triggering a company action level event as set forth in Insurance Law section 1322 or 1324;
(iii) if the further transaction of business would be hazardous to the domestic insurer's policyholders or creditors or to the public; or
(iv) if requiring such measures would be in the best interests of the people of this State.
(6) If a domestic insurer that qualifies for an exemption pursuant to paragraph (1) of this subdivision subsequently no longer qualifies for that exemption due to changes in premium as reflected in the domestic insurer's most recent annual statement or in the most recent annual statements of the insurers within the holding company system, article 16 system, or article 17 system of which the domestic insurer is a member, then the domestic insurer shall have one year following the year the threshold is exceeded to comply with the requirements of this section.

N.Y. Comp. Codes R. & Regs. Tit. 11 § 82.3

Adopted, New York State Register, Volume XXXVI, Issue 25, effective 6/25/2014