NY A06164

Expands the definition of "governmental unit" to include member countries of the Organisation for Economic Co-operation and Development (OECD) with sovereign ratings in one of the top three (increased from top two) generic lettered rating classifications.

Modifies the term "securities agency" to "nationally recognized statistical rating organization" throughout the insurance law for consistency and clarity.

Changes single risk limits for insured unpaid principal from a flat 75 percent to a tiered system based on the sovereign rating of the applicable governmental unit, ranging from 75 percent for top two ratings down to 26 percent for A-/A3 rated countries.

Updates references to regulatory language in Section 6904 regarding exposure limitations and breach procedures, changing references from "paragraph one" to "paragraph two" of subsection (b).

Allows financial guaranty insurance corporations greater flexibility in insuring obligations issued by highly-rated OECD member countries while maintaining protective risk management standards.