New York Insurance Department Superintendent Eric Dinallo issued a reminder last week that insurance companies must file annual financial reports or supplements that comply with the accounting requirements prescribed by the state’s insurance law.
“New York State Insurance Law sets out a level playing field for all insurers,” Dinallo said. “In order that consumers 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. Consumer protection and transparency are guiding principles for this Department.”
The reminder came in a circular letter, a bulletin sent to all insurers in the state. Insurance companies file annual financial reports with the State. The reports, due March 1 each year, allow regulators to monitor the strength and solvency of these companies.
Insurance companies are primarily regulated by their home states. While general accounting and reporting practices are similar for all states, state regulators are allowed to permit certain accounting practices that may differ from the requirements of other states. In some circumstances, this may mean the capital or surplus reported by an insurer under the rules of its home state regulator may be different from that which would be reported had the accounting requirements of New York Insurance Law been followed.
Companies using these permitted practices that are authorized to do business in New York have always been required to file a New York supplement along with their annual financial statement. In that supplement, the company must adjust its assets, liabilities and surplus to reflect New York law.
Source: New York Insurance Department
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