§ 1301. Admitted assets. (a) In determining the financial condition of
a domestic or foreign insurer or the United States branch of an alien
insurer for the purposes of this chapter, there may be allowed as
admitted assets of such insurer, unless otherwise specifically provided
in this chapter, only the following assets owned by such insurer

(1) Cash, including legal tender or the equivalent in any office of
such insurer or in transit under its control and the true balance of any
deposit in a solvent bank, trust company or thrift institution.

(2) Investments acquired or held in accordance with the applicable
provisions of this chapter, and the income due or accrued thereon
subject to paragraphs three and four of this subsection as to dividends,
interest, rents and accrued taxes paid.

(3) Declared and unpaid dividends on shares, unless the amount has
otherwise been allowed as an admitted asset.

(4) Investment income due and accrued. Such amounts shall be assessed
for collectibility. If it is probable that the investment income due and
accrued balance is uncollectible, the amount shall be written off and
shall be charged against investment income in the period such
determination is made. Any remaining investment income due and accrued
(i.e., amounts considered probable of collection) representing either
(i) amounts that are over ninety days past due (generated by any
invested asset except mortgage loans in default), or (ii) amounts
otherwise designated as nonadmitted shall be considered nonadmitted. If
a mortgage loan in default has interest one hundred eighty days past due
that has been assessed as collectible, all interest shall be considered
a nonadmitted asset. Such nonadmitted amounts shall be subject to
continuing assessments of collectibility and, if determined to be
uncollectible, a write-off shall be recorded in the period such
determination is made. For purposes of this paragraph, "probable" shall
mean that the future event or events are likely to occur.

(5) Premium notes, policy loans and other policy assets and liens on
policies, contracts or certificates of a life insurance company or
fraternal benefit society, in an amount not exceeding the legal reserve
and other policy liabilities carried on each individual contract; the
net amount of uncollected and deferred premiums, considerations or
assessments of a life insurance company or of a fraternal benefit
society which carries the full mean tabular reserve liability; for a
fraternal benefit society which does not carry such reserve liability,
the net amount of uncollected premiums.

(6) Premiums in course of collection, other than life insurance
premiums, not more than ninety days past due, less commissions payable
thereon. The foregoing limitation of ninety days shall not apply to: (i)
premiums payable directly or indirectly by the United States government
or any of its instrumentalities, (ii) reinsurance premiums payable by
ceding insurers authorized to transact such business in this state, or
(iii) reinsurance premiums payable which may be offset by amounts
carried by the assuming insurer as liabilities for amounts due to the
ceding insurer for unpaid losses or other mutual debts. However
reinsurance premiums more than ninety days past due shall not be allowed
in excess of ten per centum of the reinsurer's total admitted assets as
shown on its most recent annual statement on file in the office of the
superintendent pursuant to section three hundred seven of this chapter.

(7) Instalment premiums, other than life insurance premiums, as
prescribed by regulation.

(8) Notes and like written obligations, not past due, taken for
premiums other than life insurance premiums, on policies permitted to be
issued on such basis, to the extent of the unearned premium reserves
carried thereon except as otherwise prescribed by regulation.

(9) Reinsurance recoverable by a ceding insurer: (i) from an insurer
authorized to transact such business in this state, except from a
captive insurance company licensed pursuant to the provisions of article
seventy of this chapter, in the full amount thereof; (ii) from an
accredited reinsurer, as defined in subsection (a) of section one
hundred seven of this chapter, to the extent allowed by the
superintendent on the basis of the insurer's compliance with the
conditions of any applicable regulation; or (iii) from an insurer not so
authorized or accredited or from a captive insurance company licensed
pursuant to the provisions of article seventy of this chapter, in an
amount not exceeding the liabilities carried by the ceding insurer for
amounts withheld under a reinsurance treaty with such unauthorized
insurer or captive insurance company licensed pursuant to the provisions
of article seventy of this chapter as security for the payment of
obligations thereunder if such funds are held subject to withdrawal by,
and under the control of, the ceding insurer. Notwithstanding any other
provision of this chapter, the superintendent may by regulation
prescribe the conditions under which a ceding insurer may be allowed
credit, as an asset or as a deduction from loss and unearned premium
reserves, for reinsurance recoverable from an accredited reinsurer, an
insurer not authorized in this state or a captive insurance company
licensed pursuant to the provisions of article seventy of this chapter.

(10) Amounts receivable by an assuming insurer for funds withheld by a
ceding insurer under a reinsurance treaty, not exceeding the amounts
carried by such assuming insurer as liabilities for unpaid losses and
reserves under such contracts.

(11) Amounts receivable under a funding agreement issued pursuant to
section three thousand two hundred twenty-two of this chapter.

(12) Deposits or equities recoverable from underwriting associations,
syndicates and reinsurance funds, or from suspended banking
institutions, to the extent deemed by the superintendent available for
the payment of losses and claims and at values determined by him.

(13) (A) Electronic data processing apparatus and related equipment
constituting a data processing, record keeping, or accounting system and
operating system software, provided that such assets shall be deemed
admitted, subject to such regulations as may be promulgated by the
superintendent in an amount not to exceed three percent of the insurer's
capital and surplus, or such other amount that the superintendent, in a
regulation, determines to be appropriate in specified circumstances, as
required to be shown on its statutory balance sheet for its most
recently filed statement with the superintendent adjusted to exclude any
net positive goodwill, electronic data processing apparatus and related
equipment, operating system software and net deferred tax assets,
provided that electronic data processing apparatus and related equipment
and operating system software shall be amortized over the lesser of its
useful life or three years. Nonoperating system software shall be
nonadmitted and depreciated over the lesser of its useful life or five
years.

(B) Notwithstanding the provisions of subparagraph (A) of this
paragraph, until December thirty-first, two thousand eleven, electronic
data processing apparatus and related equipment constituting a data
processing, record keeping, or accounting system and operating system
software of article forty-three corporations and public health law
article forty-four health maintenance organizations, integrated delivery
systems, prepaid health service plans and comprehensive special needs
plans may be allowed as admitted assets if the cost of each such system
is fifty thousand dollars or more and provided that such cost shall be
amortized over a period not to exceed ten years. Effective January
first, two thousand twelve, the provisions of subparagraph (A) of this
paragraph shall apply to article forty-three corporations and public
health law article forty-four health maintenance organizations,
integrated delivery systems, prepaid health service plans and
comprehensive special needs plans.

(14) Positive goodwill, provided that such asset shall be deemed
admitted, subject to such limitations and conditions in regulations as
may be promulgated by the superintendent in an amount not to exceed ten
percent of the insurer's capital and surplus as required to be shown on
its statutory balance sheet for its most recently filed statement with
the superintendent adjusted to exclude any net positive goodwill,
electronic data processing apparatus and related equipment, operating
system software and net deferred tax assets, and provided further that
such positive goodwill shall be amortized in full over the period in
which the insurer benefits economically, not to exceed ten years. When
negative goodwill exists, it shall be recorded as a contra-asset.

(15) Amounts payable to the insurer from the property/casualty
insurance security fund on behalf of insureds with medical malpractice
insurance claims-made policies pursuant to subparagraph (G) of paragraph
one of subsection (a) of section seven thousand six hundred three of
this chapter.

(16) Gross deferred tax assets, provided that such assets shall be
deemed admitted to the extent provided by regulations promulgated by the
superintendent in an amount not to exceed the sum of:

(A) federal income taxes paid in prior years that can be recovered
through loss carrybacks for existing temporary differences that reverse
by the end of the subsequent calendar year;

(B) the lesser of:

(i) the amount of gross deferred tax assets after the application of
subparagraph (A) of this paragraph expected to be realized within one
year of the balance sheet date; or

(ii) ten percent of the insurer's statutory capital and surplus as
required to be shown on its statutory balance sheet for its most
recently filed statement with the superintendent adjusted to exclude any
net positive goodwill, electronic data processing apparatus and related
equipment, operating system software and net deferred tax assets; and

(C) the amount of gross deferred tax assets after application of
subparagraphs (A) and (B) of this paragraph that can be offset against
existing gross deferred tax liabilities.

(17) Other assets, not inconsistent with the foregoing provisions,
deemed by the superintendent available for the payment of losses and
claims, at values determined by the superintendent.

(18) The superintendent may, be regulation, modify any requirement of
this subsection to conform to any subsequent amendment to the accounting
practices and procedures manual as adopted from time to time by the
national association of insurance commissioners.

(b) Admitted assets may be allowed as deductions from corresponding
liabilities, liabilities may be charged as deductions from assets, and
deductions from assets may be charged as liabilities, in accordance with
the form of annual statement applicable to such insurer as prescribed by
the superintendent, or otherwise in his discretion.

(c) The superintendent may by regulation prescribe the application of
the provisions of this section.