Insurance companies doing business in New York are required to file annual financial reports that exclude the impact of any special capital and surplus relief granted in other states, Insurance Superintendent Eric Dinallo announced in a bulletin to insurers.

 

Insurers domiciled in other states must adjust their annual statements to reflect New York accounting requirements, in accordance with state insurance law, the department ordered in the Circular Letter to all licensed insurers in the state.

 

Dinallo's order came as regulators in states including Connecticut, Indiana, Iowa and Ohio have granted or are considering steps to provide relief for life insurance companies (BestWire, Feb. 23, 2009). The commissioners are acting in the wake of a vote by the executive committee of the National Association of Insurance Commissioners against fast-tracking relief measures requested by the American Council of Life Insurers (BestWire, Jan. 29, 2009).

 

"New York State Insurance Law sets out a level playing field for all insurers," Dinallo said in a statement. "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."

 

Due March 1, insurance companies' annual financial reports are used by the state to monitor their strength and solvency. General accounting and reporting practices are similar for all states, but state regulators may permit certain accounting practices that differ from what is mandated in other jurisdictions.

 

In Ohio, Insurance Commissioner Mary Jo Hudson issued three permitted practice bulletins to allow life insurance companies to request making changes to their minimum reserve liabilities for certain life and annuity products. Changes included allowing companies to include deferred income tax assets as up to 15% of reported capital and surplus and permitting estimating of deferred tax assets for a three-year period (BestWire, Feb. 23, 2009).