N.Y. ISC Law § 4118

§ 4118. Limitation of risks; fidelity and surety; fire; hospital\nmutuals. (a) (1) In applying the limitation of section one thousand one\nhundred fifteen of this chapter to fidelity and surety risks the net\namount of exposure on any one fidelity or surety risk shall, except as\nprovided in paragraph four hereof, be deemed within the limit of ten\npercent if the company is protected in excess of that amount by:\n (A) reinsurance in a company authorized to write such business in this\nstate or reinsurance in an accredited reinsurer, as defined in\nsubsection (a) of section one hundred seven of this chapter, which is in\nsuch form as to enable the obligee or beneficiary to maintain an action\nthereon against the ceding insurer jointly with the assuming insurer or,\nwhere the commencement or prosecution of actions against the ceding\ninsurer has been enjoined by any court of competent jurisdiction or any\njustice or judge thereof, against the assuming insurer alone, and to\nhave recovery against the assuming insurer for its share of the\nliability thereunder and in discharge thereof; or\n (B) the co-suretyship of any other company authorized to do such\nbusiness in this state; or\n (C) a deposit of property with it in pledge or conveyance of property\nto it in trust for its protection; or\n (D) a conveyance or mortgage of property for its protection; or\n (E) in case a suretyship or guaranty obligation was made on behalf or\non account of a fiduciary holding property in a trust capacity, by such\na deposit or other disposition of a portion of the property so held in\ntrust that no future sale, mortgage, pledge or other disposition can be\nmade thereof except with the consent of the insurance company or by\ndecree or order of a court of competent jurisdiction.\n (2) Notwithstanding the provisions of paragraph one hereof, a company\nmay execute bonds of the kind commonly known as transportation or\nwarehousing bonds for United States internal revenue taxes in a net\namount not exceeding twenty percent of its surplus to policyholders,\ndetermined as provided in paragraph one hereof.\n (3) In determining the net amount of exposure on any one risk, the\nfollowing rules shall be applicable to the kinds of obligations\nhereinafter described:\n (A) When the penalty of a suretyship obligation exceeds the amount of\na judgment prescribed therein as appealed from and thereby secured, or\nexceeds the amount of the subject matter in controversy or of the estate\nin the hands of the fiduciary for the performance of whose duties it is\nconditioned, the bond may be executed by such company if the actual\namount of the judgment or the subject matter in controversy or estate\nnot subject to supervision or control of the surety, is not in excess of\na limitation of ten percent.\n (B) When the penalty of a suretyship obligation executed for the\nperformance of a contract exceeds the contract price, the latter amount\nshall be taken as the basis for estimating the limit of risk within the\nmeaning of this paragraph.\n (4) In addition to any other limitation contained in this chapter, no\nauthorized company shall at any one time be exposed to risks on\nsuretyship obligations guaranteeing the deposits of any single financial\ninstitution in an aggregate net amount in excess of ten percent of the\nsurplus to policyholders of such company, determined as provided in\nparagraph one hereof, unless it shall be protected in excess of that\namount by security in accordance with the provisions of subparagraphs\n(A), (B), (C) and (D) of paragraph one hereof.\n (b) No insurer authorized to write fire insurance in this state shall\nexpose itself to any loss on any one fire risk, whether located in this\nstate or elsewhere, in an amount exceeding ten percent of its surplus to\npolicyholders, except that in the case of risks adequately protected by\nautomatic sprinklers or risks principally of non-combustible\nconstruction and occupancy such insurer may
n (b) No insurer authorized to write fire insurance in this state shall\nexpose itself to any loss on any one fire risk, whether located in this\nstate or elsewhere, in an amount exceeding ten percent of its surplus to\npolicyholders, except that in the case of risks adequately protected by\nautomatic sprinklers or risks principally of non-combustible\nconstruction and occupancy such insurer may expose itself to any loss on\nany one risk in an amount not exceeding twenty-five percent of the sum\nof its unearned premium reserve and its surplus to policyholders. Any\nrisk or portion of any risk reinsured in an assuming insurer authorized\nto write such business in this state or in an accredited reinsurer, as\ndefined in subsection (a) of section one hundred seven of this chapter,\nshall be deducted in determining the limitation of risk prescribed in\nthis subsection.\n (c) A mutual property/casualty insurance company subject to paragraph\ntwo of subsection (a) of section four thousand one hundred seven of this\narticle may be permitted to write coverage on any one risk in excess of\nthe limitation provided by section one thousand one hundred fifteen of\nthis chapter, based upon criteria approved by the superintendent.\n