A New York insurer can buy financial guaranty insurance to back its commercial mortgage-backed securities, but New York will look mainly at ratings when deciding whether the CMBS can be used to invest reserves.
New York department officials address 3 questions in the opinion:
1. Would an insurance company (the “Company”) violate the New York Insurance Law if it were to obtain financial guaranty or portfolio insurance from an alien non-authorized insurer (“Guarantor”) on certain CMBS held in the Company’s general account?