Empire State Asks For Liquidity Updates

The New York State Insurance Department wants life insurers and life reinsurers to tell it how liquid they are by Dec. 10.

Department officials say the “special liquidity inquiry” report must be completed by an insurer’s chief financial officer or other highest-ranking financial officer and must be submitted through the Web.

“The purpose of this special inquiry is to assess any changes in the company’s liquidity position since 12/31/07,” officials write in liquidity report instructions.

Questions include, “Does your company have a formal written liquidity plan?” and, “Describe how your company would respond to an immediate and material cash demand, such as could be triggered by a rating agency downgrade.”