1. (a) Where a ceding insurer obtains reinsurance through a “reinsurance intermediary,” as defined in section 2101(f) of the Insurance Law, from an assuming insurer which is neither licensed in this State nor has placed funds with the ceding insurer pursuant to section 1301(a)(9) of the Insurance Law, the ceding insurer shall not be allowed credit unless:

   1. (1) the reinsurance agreement includes a provision whereby the reinsurer assumes all credit risks of the intermediary related to payments to the intermediary; and

   2. (2) in the case of a reinsurance intermediary acting outside this State, the ceding insurer obtains a written agreement from the reinsurance intermediary that the intermediary will comply with all of the provisions of Part 32 of this Title (Regulation No. 98) and the intermediary agrees to be subject to examination by the superintendent as often as the superintendent may deem it expedient; except such intermediary may deposit funds received in a bank or banks not authorized to do business in this State, if:

      1. (i) such bank is chartered within the United States; or
      2. (ii) such bank, as designated by a non-United States reinsurance intermediary, is located outside of the United States; provided written consent is obtained from the ceding insurer.

2. (b) Other than as permitted pursuant to section 125.4(e), (f) and (g) of this Part, for risks other than life, annuity and accident and health, or section 125.4(h) and (i) of this Part, credit taken by a ceding insurer for reinsurance ceded to an unauthorized assuming insurer, which is not an accredited, certified, or reciprocal jurisdiction assuming insurer, shall not exceed the amounts withheld under a reinsurance treaty with such unauthorized insurer as security for the payment of obligations thereunder, provided such funds are held subject to withdrawal by, and under the control of, the ceding insurer. Amounts withheld include:

   1. (1) funds withheld for which the ceding insurer has set up a liability;
   2. (2) letters of credit complying with Part 79 of this Title (Insurance Regulation 133); and
   3. (3) funds deposited in trust agreements complying with Part 126 of this Title (Insurance Regulation 114).

In addition to the conditions specified in sections 125.4 and 125.5 of this Part: