(a) The large financial risks inherent in jumbo jets placed a considerable burden upon the United States reinsurance market in the early 1970's. To provide sufficient underwriting capacity to meet the needs of the jumbo jet age, the New York Insurance Law was amended in 1971 by adding a new subsection (d) to section 1114 and amending section 4205, to permit authorized life insurers, acting either individually or together with other insurers, to reinsure risks “arising from, related to, or incident to the manufacture, ownership or operation of aircraft.”

(b) The 1971 amendments, which were implemented by the prior Part 93 of this Title, have enabled the life insurance industry to provide such additional capacity. Since 1971 technology has progressed and vehicles capable of sustained travel throughout both air and space have been developed, creating new and additional problems of capacity for which the resources of life insurance companies must continue to be available.

(c) This regulation is intended to accommodate advancing technology and provide adequate protection for life insurance companies and their policyholders by enlarging their scope of permitted activities, inter alia redefining the term “aircraft.”