N.Y. Comp. Codes R. & Regs. tit. 11 § 126.6
Funds withheld pursuant to a trust agreement may not be used to reduce any liability for reinsurance ceded to an unauthorized reinsurer in financial statements required to be filed with this department, unless a trust account in compliance with the provisions of this Part, has been established on or before the "as of date" of the financial statement of the ceding insurer. Further, the reduction for the existence of an acceptable trust account may be up to the current fair market value of acceptable assets available to be withdrawn from the trust account at that time, but such reduction shall be no greater than the specific obligations under the reinsurance agreement that the trust account was established to secure or, as respects reinsurance agreements covering life, annuity and accident and health risks, the amount of reinsurance recoverables permitted in accordance with section 125.5 of this Title (Regulation No. 20).
N.Y. Comp. Codes R. & Regs. Tit. 11 § 126.6