When insurers file New York financial statements, they must exclude the effects of capital and surplus exceptions granted in other states.
The New York State Insurance Department has announced that requirement in Circular Letter Number 4, which was issued Thursday.
Insurers’ annual financial statements are due March 1.
Some states are responding to insurers’ requests for helping by permitting insurers to use accounting practices not normally allowed by the current statutory accounting rules.
To help consumers compare insurers, insurers’ financial reports “must be clear and consistent,” New York Insurance Superintendent Eric Dinallo says in a statement.
“Foreign insurers” – insurers that operate in New York state but have domiciles in other states – must adjust their statements to reflect New York accounting practices, New York regulators say.
An insurer that is using permitted practices outside New York should reflect those practices in the New York annual statement supplement, by adjusting the insurer’s assets, liabilities and surplus on a New York basis, officials write in the circular statement.