N.Y. Insurance Law § 1321: Commutation of reinsurance agreements

§ 1321. Commutation of reinsurance agreements. (a) If the

superintendent finds that a domestic insurer or a United States branch

of an alien insurer entered through this state is impaired or insolvent

within the meaning of this chapter, the superintendent may permit such

insurer to utilize commutations of reinsurance agreements to eliminate

the impairment or insolvency, provided that such commutations are

approved by the superintendent in accordance with standards prescribed

by regulation.

(b) For purposes of this section, commutation of a reinsurance

agreement is the elimination of all present and future obligations

between the parties, arising from the reinsurance agreement, in exchange

for a current consideration.

(c) Nothing herein contained shall preclude the superintendent from

proceeding against such insurer under any other provision of this

chapter.