The New York Department of Financial Services (“NYDFS”) assessed a $6.3 million fine on William Penn Life Insurance Co. (“William Penn Life”) for engaging in improper reinsurance transactions.
The NYDFS noted that William Penn Life failed to obtain approval from the NYDFS when executing amendments to existing reinsurance treaties with its European parent and made materially inaccurate statements in response to the NYDFS’ information requests in violation of NY CLS § 1505. The NYDFS requires that domestic controlled insurers entering into reinsurance treaties and agreements with any person in its holding company system notify the superintendent at least forty-five days prior to entering into said agreement. NY CLS § 1505(d)(2).
For any questions regarding reinsurance agreement requirements in New York or any other state, please contact Westmont Associates, Inc.
Westmont Associates, Inc. tracks developments affecting the insurance industry, in addition to our other services. If you have any questions, please contact us at (856)216-0220.