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The Office of General Counsel issued the following informal opinion on March 28, 2000.

Accredited reinsurer and excess lines insurance

Question Presented:

May an insurer not authorized to do business in New York be both an accredited reinsurer and also an eligible excess line insurer in New York?


Yes, such an insurer may be both an accredited reinsurer and also an eligible excess line insurer in New York.


The X Company is a property/casualty insurer that is neither domiciled nor authorized to business in New York. It is currently eligible to do business in New York on an excess (also known as "surplus") line basis. It wishes to become an accredited reinsurer, and inquires whether an insurer can be an accredited reinsurer and still do business on an excess line basis.

An accredited reinsurer, by definition, is an insurer that is not authorized to do an insurance business in New York. N.Y. Ins. Law § 107(a)(2) (McKinney 1985). Accreditation is merely an acknowledgement that the insurer meets certain standards of solvency and is in compliance with regulatory requirements under which a ceding authorized insurer may be allowed credit for reinsurance. See N.Y. Comp. Codes R. & Regs. tit. 11 § 125 (a) (1995) (Regulations 17, 20, 20-A). An accredited reinsurer receives a certificate of recognition, but is not licensed as an authorized insurer.

Because an accredited reinsurer is not an authorized insurer, it may continue to transact business on an excess line basis, in accordance with applicable requirements.

For further information, you may contact Supervising Attorney Paul A. Zuckerman of the Department’s New York office.

Department of Financial Services


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