N.Y. Insurance Law § 1115: Limitation of risk, in general

§ 1115. Limitation of risk, in general. (a) Except as otherwise

provided in this chapter, no insurer doing business in this state shall

expose itself to any loss on any one risk in an amount exceeding ten

percent of its surplus to policyholders. In determining the amount of

risk, any portion reinsured in an assuming insurer authorized to do such

business in this state or in an accredited reinsurer, as defined in

subsection (a) of section one hundred seven of this chapter, shall be

deducted. In determining the limitation of risk under any provision of

this chapter, "surplus to policyholders" shall include voluntary

reserves, or any part thereof, not required by law, and be determined

from the insurer's last sworn statement on file with the superintendent,

or the last report on examination filed by the superintendent, whichever

is more recent at the time the risk is assumed. In applying the

limitation under any provision of this chapter to alien insurers, such

provision shall be deemed to refer to the exposure to risk and to the

surplus to policyholders of the United States branch of such alien

insurer.

(b) This section shall not apply to the insurance of marine risks,

marine protection and indemnity risks, workers' compensation, employers'

liability risks, mortgage guaranty risks, financial guaranty risks,

risks insured for any dollar level of first party benefits provided

pursuant to article fifty-one of this chapter, certificates of title,

guaranties of title or policies of title insurance, or those insurers

subject to the provisions of subsection (c) of section two thousand

three hundred forty-three of this chapter.

(c) (1) An insurer, selling residual value insurance in this state

must at all times maintain surplus to policyholders in the aggregate

amount of no less than: (i) 0.3333 percent or 1/300th of the aggregate

net liability under guaranties of commercial real estate; (ii) 0.6666

percent or 1/150th of the aggregate net liability under guaranties of

commercial transportation, to include, but not inclusively, aircraft,

helicopters, vessels and railcars; (iii) one percent or 1/100th of the

aggregate net liability under guaranties of commercial industrial

equipment; (iv) with regard to all other residual value guarantees, four

percent or 1/25th of the aggregate net liability under such guarantees.

For purposes of subparagraphs (i) through (iv) of this paragraph

residual value is defined as set forth in paragraph twenty-two of

subsection (a) of section one thousand one hundred thirteen of this

article including financial transactions demonstrated to the

satisfaction of the superintendent to be the functional equivalent

thereof.

(2) An insurer, selling residual value insurance in this state shall

limit its exposure on any one risk, net of collateral and reinsurance to

an amount not to exceed ten percent of the aggregate of the insurer's

surplus to policyholders. For the purposes of this section reinsurance

must be placed with an authorized or accredited reinsurer in New York

state. The credit for collateral shall not exceed fifty percent of the

appraised value of the underlying asset at the date in the future that

the value of the property is guaranteed.