Title 24, Insurance

[§431:4A-103] Qualified United States financial institutions. (a) For purposes of section 431:4A-102(3), a "qualified United States financial institution" means an institution that: (b) For purposes of those provisions of this article specifying those institutions that are eligib…

§431:4A-104 Rules. (a) The commissioner may adopt rules pursuant to chapter 91 implementing this article. (b) The commissioner may adopt rules applicable to reinsurance arrangements as follows:

[ARTICLE 4F] STATE OF ENTRY FOR ALIEN INSURERS [§431:4F-101] Definitions. As used in this article, unless the context requires otherwise: "Alien insurer" has the same meaning as set forth in section 431:3-101. "Trusteed assets" mean the assets in a trust account required by secti…

[§431:4F-102] Scope. This article applies to a United States branch using this State as a state of entry to transact insurance in the United States. The United States branch shall be subject to all state laws applicable to an insurer domiciled in this State, unless otherwise prov…

§431:4F-103 Authorization of entry. (a) An alien insurer may use this State as a state of entry to transact insurance in the United States through a United States branch by: (b) Before authorizing the entry of a United States branch of any alien insurer through this State, the co…

[§431:4F-104] Maintenance of trust account. The trusteed assets, or the assets of the trust account of an alien insurer, as required by section 431:4F-103, shall at all times be in an amount equal to the United States branch's reserves and other liabilities plus the minimum capit…

[§431:4F-105] Requirements for trust agreement. (a) The terms of the trust agreement required by section 431:4F-103 shall be set forth in a deed of trust. The deed of trust and all subsequent amendments shall be authenticated in a form and manner as the commissioner may prescribe…

[§431:4F-106] Reporting requirements for United States branches of alien insurers. (a) In addition to other requirements of the insurance code, every authorized United States branch shall complete and file the report required of a domestic insurer in article 3, including: (b) The…

[§431:4F-107] Additional requirements for United States branch license. (a) Before issuing any new or renewal license to any United States branch, the commissioner may require satisfactory proof, either in the alien insurer's charter or by an agreement evidenced by a duly certifi…

[§431:4F-108] Authority of commissioner. Whenever it appears to the commissioner from any annual statement, quarterly statement, trusteed surplus statement, or any other report that a United States branch's trusteed surplus is reduced below minimum capital and surplus or the auth…

ARTICLE 5 FINANCIAL CONDITION PART I. STANDARDS §431:5-101 Impairment of capital. (b) The insurer may cure the deficiency by assessment of stockholders, by action of its board of directors, or by other lawful means. The deficiency shall be cured: (c) Shares as to which such an as…

§431:5-102 Impairment of surplus. (b) The insurer shall cure the deficiency in cash or in assets eligible under this code for the investment of the insurer's funds. (c) If the deficiency is not cured and proof thereof filed with the commissioner within such ninety-day period, the…

§431:5-103 Impairment of reciprocal's surplus. (b) The insurer shall be deemed insolvent and shall be proceeded against as authorized by this code if: (c) If liquidation of such an insurer is ordered, an assessment shall be levied upon the subscribers for such an amount, subject …

PART II. ASSETS AND LIABILITIES §431:5-201 Qualified assets. In any determination of the financial condition of an insurer, only the assets owned by the insurer and that consist of the following may be used:

§431:5-202 Assets not allowed. In addition to assets excluded under section 431:5-201, the following shall not be allowed as assets in any determination of the financial condition of an insurer:

§431:5-203 Liabilities. In any determination of the financial condition of an insurer, liabilities to be charged against its assets shall include:

§431:5-204 Determining financial condition of reciprocal insurers. In determining the financial condition of a reciprocal insurer, the commissioner shall apply the following rules:

PART III. RESERVES AND VALUATION §431:5-301 Unearned premium reserve. (a) Every insurer shall maintain an unearned premium reserve on all policies in force for: (b) For purposes of this article, "unearned premium reserve" means the portions of the gross premiums in force, less au…

§431:5-302 Unearned premium reserve for marine and transportation. Marine and transportation insurance policy premiums on trip risks not terminated shall be deemed unearned. The commissioner may require the insurer to carry a reserve equal to one hundred per cent on trip risks wr…

§431:5-303 Active life reserves and unearned premium reserves for noncancellable disability insurance. (a) The legal minimum standard for computing the active life reserve, including the unearned premium reserve, of noncancellable disability policies shall be based on conference …

§431:5-304 Loss reserves for liability and workers' compensation insurance. The reserves for outstanding losses and loss expenses under policies of liability insurance and workers' compensation insurance shall be determined in accordance with the applicable basis set forth in the…

§431:5-305 Increased reserves. (a) If the commissioner determines that an insurer's unearned premium reserves, however computed, are inadequate, the commissioner may require the insurer to compute such reserves or any part thereof according to such other method or methods as are …

§431:5-306 Reserve credit for reinsurance. (a) An insurer may take credit for reserves on risks ceded to a reinsurer to the extent reinsured, except that: (b) A reinsurance agreement may provide that: (c) Subject to court approval, the expense thus incurred by the assuming insure…

§431:5-307 Standard valuation law; life. (a) This section shall be known as the standard valuation law. (c) For an actuarial opinion prior to the operative date of the valuation manual: (d) For actuarial opinions of reserves after the operative date of the valuation manual: (e) E…

§431:5-308 Valuation of bonds. (a) All bonds or other evidences of debt having a fixed term and rate held by any insurer may, if amply secured and not in default as to principal or interest, be valued as follows: (b) The commissioner shall have full discretion in determining the …

§431:5-309 Valuation of other securities. (a) Any security, other than a security covered by section 431:5-308, is required to be valued at its market value or, if there is no market, at its value as fixed by an impartial appraiser, all consistent with any current method for the …

§431:5-310 Valuation of property. (a) Real property acquired pursuant to a mortgage loan or a contract for a deed, in the absence of a recent appraisal deemed by the commissioner to be reliable, shall not be valued at an amount greater than the unpaid principal of the defaulted l…

§431:5-311 Valuation of purchase money mortgages. Purchase money mortgages on real property referred to in section 431:5-310 shall be valued in an amount not exceeding the acquisition cost of the real property covered thereby or ninety per cent of the fair value of the real prope…

PART IV. RULES [§431:5-401] Rules. The commissioner may adopt rules under chapter 91 implementing this article. [L 1995, c 232, §5]

ARTICLE 6 INVESTMENTS PART I. GENERAL PROVISIONS §431:6-101 Definitions pertaining to investments. (a) For purposes of this article: "Cash" includes cash equivalents. "Cash equivalents" means highly-rated and highly-liquid investments or securities with a remaining term of ninety…

§431:6-102 Merged, reorganized institutions. In applying the earnings test set forth in section 431:6-101 to any such institution, whether or not in legal existence during the whole of such five years next preceding the date of investment by the insurer, which has at any time dur…

§431:6-103 Eligible investments; scope. (a) This article shall apply to domestic insurers only. Insurers shall invest in or loan their funds on the security of, and shall hold as assets, only eligible investments as prescribed in this article. (b) The eligibility of an investment…

§431:6-104 General qualifications. (a) Notwithstanding the provisions of section 431:6-321, no security or other investment shall be eligible for purchase or acquisition under this article unless it is interest bearing or interest accruing or income paying, is not then in default…

§431:6-105 General limitations. Except as otherwise expressly limited, an insurer shall not have at any time any combination of investments in or loans upon the security of the obligations, property, and securities of any one person aggregating an amount exceeding ten per cent of…

§431:6-106 Record of investments. (a) As to each investment or loan of the funds of a domestic insurer, a written record in permanent form showing the authorization thereof shall be made and signed by an officer of the insurer or by the chairperson of the committee authorizing th…

PART II. MANDATORY PROVISIONS §431:6-201 Required investments for capital and reserves. (a) An insurer shall invest and keep invested its funds aggregating in amounts, if a stock insurer, not less than sixty per cent of its minimum required capital, or if a mutual or reciprocal i…

PART III. PERMITTED INVESTMENTS §431:6-301 Public obligations. (a) An insurer may invest any of its funds in bonds or other evidences of debt, not in default as to principal or interest, which are valid and legally authorized obligations issued, assumed, or guaranteed by the Unit…

§431:6-302 Corporate obligations. An insurer may invest any of its funds in obligations other than those eligible for investment under section 431:6-306 if they are:

§431:6-303 Preferred or guaranteed stocks or shares. An insurer may invest any of its funds, in an aggregate amount not exceeding fifteen per cent of its assets, in preferred or guaranteed stocks or shares, other than common stocks, of solvent institutions existing under the laws…

§431:6-304 Trustees or receivers obligations. An insurer may invest any of its funds, in an aggregate amount not exceeding two per cent of its assets, in certificates, notes or other obligations issued by trustees or receivers of institutions existing under the laws of the United…

§431:6-305 Equipment trust obligations. An insurer may invest any of its funds, in an aggregate amount not exceeding ten per cent of its assets, in equipment trust obligations or certificates which are adequately secured, or in other adequately secured instruments evidencing an i…

§431:6-306 Mortgage loans and contracts. An insurer may invest any of its funds in:

§431:6-307 Mortgage loan limited by property value. (a) No mortgage loan or investment therein upon any one parcel of real property shall exceed in amount at the time of acquisition: (b) The extent to which a mortgage loan made under section 431:6-306(3) is guaranteed or insured …

§431:6-308 Encumbrance defined. (a) Real property shall not be deemed to be encumbered within the meaning of section 431:6-306 by reason of the existence of instruments reserving mineral, oil, timber, or similar rights, rights of way, sewer rights, rights in walls, nor by reason …

§431:6-309 Appraisal; insurance; limit. (a) The fair value of property shall be determined by appraisal by a competent appraiser at the time of the making or acquiring of a mortgage loan or investing in a contract for the deed thereon. (b) Buildings and other improvements located…

§431:6-310 Security agreements. (a) In connection with a mortgage loan on the security of real property designed and used primarily for residential purposes only acquired pursuant to section 431:6-306, an insurer may loan or invest an amount not exceeding twenty per cent of the a…