Under New York law, like in most states, an insurer is financially impaired if it (1) cannot pay its claims or debts; (2) has inadequate reserves; or (3) has engaged in conduct that violates the law. The New York State Legislature adopted a version of the Uniform Insurers Liquidation Act, which sets forth the salient principles regarding the administration and conduct of impaired insurers in New York. That legislation appears in article 74 of the N.Y. Insurance Law (Insurance Law).
Reprinted with permission from: Insurance Law, Second Edition, Copyright 2016, published by the New York State Bar Association, One Elk Street, Albany, NY 12207.
