The New York State Insurance Department will be calling all insurers in the state to schedule their financial stress tests.
Most of the reviews will be conducted at the insurers’ offices, and department regulators expect most to take a day or two, officials say.
New York regulators have described the stress tests in Circular Letter Number 25 (2008).
Regulators will look at companies’ forecasting models, the scenarios fed through the models, and evidence that companies’ managers used the results of stress testing to run the companies’ operations, officials write in the circular letter.