N.Y. insurance super Dinallo cracks down
Insurers doing business in N.Y. that receive breaks on accounting rules in their home states must adhere to N.Y.'s accounting rules when filing annual statements.
Insurers doing business in New York that receive breaks on their accounting rules in their home states must adhere to the Empire State’s accounting requirements when filing annual statements, according to an announcement from Eric R. Dinallo, the state’s insurance superintendent.
Because of the preferential accounting treatment, Iowa, Ohio, Connecticut and Illinois have allowed some firms to report higher capital and surplus levels when filing in their domiciliary states.
However, insurers who have received that treatment and who do business in New York must file a supplement there that shows their assets, liabilities and surplus without the benefit of the more lenient accounting rules. The deadline for annual statements is March 1.
“New York state insurance law sets out a level playing field for all insurers,” Mr. Dinallo said in a statement. “In order that companies looking at the reports filed with New York state can fairly and confidently compare the financial strength of various insurance companies, these reports must be clear and consistent.”
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