Union Security Life Insurance Co Of New York 10-Q 2007 Q3 Quarterly report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2007

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission file number 033-71690

UNION SECURITY LIFE INSURANCE COMPANY

OF NEW YORK

(Exact name of registrant as specified in its charter)

NEW YORK	13-2699219
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

212 HIGHBRIDGE STREET, SUITE D FAYETTEVILLE, NEW YORK	13066
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (315) 637-4232

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x     No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

¨  Large accelerated filer    ¨  Accelerated filer    x  Non-accelerated filer

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

As of November 1, 2007, there were 100,000 shares of common stock of the registrant outstanding, all of which are owned by Assurant, Inc.

THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTIONS H(1)(a) AND (b) OF FORM 10-Q AND IS FILING THIS FORM WITH THE REDUCED DISCLOSURE FORMAT.

UNION SECURITY LIFE INSURANCE COMPANY OF NEW YORK

QUARTERLY REPORT ON FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2007

TABLE OF CONTENTS

Item Number		Page Number
	PART I FINANCIAL INFORMATION
1.	FINANCIAL STATEMENTS OF UNION SECURITY LIFE INSURANCE COMPANY OF NEW YORK	2
	Balance Sheets at September 30, 2007 (Unaudited) and December 31, 2006	2
	Statements of Operations (Unaudited) for the three and nine months ended September 30, 2007 and 2006	4
	Statement of Changes in Stockholder’s Equity (Unaudited) from December 31, 2006 to September 30, 2007	5
	Statements of Cash Flows (Unaudited) for the nine months ended September 30, 2007 and 2006	6
	Notes to the Financial Statements (Unaudited)	7
2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	10
3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK *	12
4.	CONTROLS AND PROCEDURES	12
	PART II OTHER INFORMATION
1A.	RISK FACTORS	12
2.	UNREGISTERED SALE OF EQUITY SECURITIES AND USE OF PROCEEDS*	12
3.	DEFAULTS UPON SENIOR SECURITIES *	13
4.	SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS *	13
5.	OTHER INFORMATION	13
6.	EXHIBITS	13
SIGNATURES		14

* Not required under reduced disclosure pursuant to General Instruction H(1) (a) and (b) of Form 10-Q

Union Security Life Insurance Company of New York

Balance Sheets

At September 30, 2007 (Unaudited) and December 31, 2006

	September 30,		December 31,
	2007		2006
	(in thousands except per share and share amounts)
Assets
Investments:
Fixed maturities available for sale, at fair value (amortized cost - $105,136 in 2007 and $107,827 in 2006)	$	107,452	$	111,522
Equity securities available for sale, at fair value (cost - $9,919 in 2007 and $9,455 in 2006)		9,323		9,381
Commercial mortgage loans on real estate, at amortized cost		26,866		21,686
Policy loans		99		120
Short-term investments		2,994		2,401
Other investments		2,277		2,524
Total investments		149,011		147,634
Cash and cash equivalents		6,379		5,600
Premiums and accounts receivable, net		6,507		3,383
Reinsurance recoverables		102,138		101,283
Accrued investment income		1,788		1,581
Tax receivable		—		1,273
Deferred acquisition costs		1,276		1,188
Deferred income taxes, net		1,703		1,485
Goodwill		2,038		2,038
Other assets		101		85
Assets held in separate accounts		21,048		21,948
Total assets	$	291,989	$	287,498

See the accompanying notes to the financial statements.

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Union Security Life Insurance Company of New York

Balance Sheets

At September 30, 2007 (Unaudited) and December 31, 2006

	September 30,		December 31,
	2007		2006
	(in thousands except per share and share amounts)
Liabilities
Future policy benefits and expenses	$	44,166	$	40,381
Unearned premiums		10,694		10,979
Claims and benefits payable		139,954		138,880
Commissions payable		5,167		4,634
Reinsurance balances payable		694		514
Funds held under reinsurance		79		76
Deferred gain on disposal of businesses		4,621		5,254
Accounts payable and other liabilities		4,823		4,507
Income taxes payable		217		—
Due to affiliates		521		1,576
Liabilities related to separate accounts		21,048		21,948
Total liabilities	$	231,984	$	228,749
Commitments and contingencies (Note 5)
Stockholder's equity
Common stock, par value $20 per share, 100,000 shares authorized, issued, and outstanding		2,000		2,000
Additional paid-in capital		43,006		43,006
Retained earnings		13,882		11,389
Accumulated other comprehensive income		1,117		2,354
Total stockholder's equity		60,005		58,749
Total liabilities and stockholder's equity	$	291,989	$	287,498

See the accompanying notes to the financial statements.

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Union Security Life Insurance Company of New York

Statements of Operations (Unaudited)

Three and Nine Months Ended September 30, 2007 and 2006

	Three Months Ended September 30,						Nine Months Ended September 30,
	2007			2006			2007			2006
	(in thousands)
Revenues
Net earned premiums and other considerations	$	20,231		$	19,979		$	48,745		$	47,151
Net investment income		2,285			2,266			6,814			6,788
Net realized (losses) on investments		(281	)		(96	)		(354	)		(395	)
Amortization of deferred gain on disposal of businesses		211			244			633			731
Fees and other income		17			12			53			30
Total revenues		22,463			22,405			55,891			54,305
Benefits, losses and expenses
Policyholder benefits		13,384			11,918			30,567			25,594
Amortization of deferred acquisition costs		334			269			970			809
Underwriting, general and administrative expenses		3,951			4,386			12,703			12,662
Total benefits, losses and expenses		17,669			16,573			44,240			39,065
Income before provision for income taxes		4,794			5,832			11,651			15,240
Provision for income taxes		1,641			1,976			4,007			5,224
Net income	$	3,153		$	3,856		$	7,644		$	10,016

See the accompanying notes to the financial statements.

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Union Security Life Insurance Company of New York

Statement of Changes in Stockholder’s Equity (Unaudited)

From December 31, 2006 to September 30, 2007

	Common Stock		Additional Paid-in Capital		Retained Earnings			Accumulated Other Comprehensive Income			Total
	(in thousands)
Balance, December 31, 2006	$	2,000	$	43,006	$	11,389		$	2,354		$	58,749
Dividends on common stock		—		—		(5,005	)		—			(5,005	)
Cumulative effect of change in accounting principle (note 3)		—		—		(146	)		—			(146	)
Comprehensive income:
Net income		—		—		7,644			—			7,644
Other comprehensive income:
Net change in unrealized gains on securities		—		—		—			(1,237	)		(1,237	)
Total other comprehensive (loss)												(1,237	)
Total comprehensive income												6,407
Balance, September 30, 2007	$	2,000	$	43,006	$	13,882		$	1,117		$	60,005

See the accompanying notes to the financial statements.

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Union Security Life Insurance Company of New York

Statements of Cash Flows (Unaudited)

Nine Months Ended September 30, 2007 and 2006

	Nine Months Ended September 30,
	2007			2006
	(in thousands)
Net cash provided by operating activities	$	9,405		$	15,121
Investing activities
Sales of:
Fixed maturities available for sale		11,093			11,248
Equity securities available for sale		2,058			2,767
Other invested assets		247			411
Maturities, prepayments, and scheduled redemption of:
Fixed maturities available for sale		4,978			5,959
Purchase of:
Fixed maturities available for sale		(13,589	)		(12,218	)
Equity securities available for sale		(2,656	)		(3,168	)
Change in commercial mortgage loans on real estate		(5,180	)		(7,574	)
Change in short-term investments		(593	)		(706	)
Change in policy loans		21			(22	)
Net cash used in investing activities		(3,621	)		(3,303	)
Financing activities
Dividends paid		(5,005	)		—
Net cash used in financing activities		(5,005	)		—
Change in cash and cash equivalents		779			11,818
Cash and cash equivalents at beginning of period		5,600			2,863
Cash and cash equivalents at end of period	$	6,379		$	14,681

See the accompanying notes to the financial statements.

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Union Security Life Insurance Company of New York

Notes to the Financial Statements (Unaudited)

(in thousands, except per share and share amounts)

1. Nature of Operations

Union Security Life Insurance Company of New York (the “Company”) is a provider of life insurance products including group disability insurance, group dental insurance, group life insurance and credit insurance. The Company is a wholly-owned subsidiary of Assurant, Inc. (the “Parent”). The Parent’s common stock is traded on the New York Stock Exchange under the symbol AIZ.

The Company is domiciled in New York and is qualified to sell life, health and annuity insurance in the state of New York.

2. Basis of Presentation

The accompanying unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Accordingly, these financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.

In the opinion of management, all adjustments (consisting only of a normal recurring nature) considered necessary for a fair statement of the financial statements have been included. Certain prior period amounts have been reclassified to conform to the 2007 presentation.

Operating results for the three and nine months ended September 30, 2007 are not necessarily indicative of the results that may be expected for the year ending December 31, 2007. The accompanying unaudited interim financial statements should be read in conjunction with the audited financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2006.

3. Recent Accounting Pronouncements

Recent Accounting Pronouncements Adopted

On January 1, 2007, the Company adopted AICPA Statement of Position 05-1,Accounting by Insurance Enterprises for Deferred Acquisition Costs in Connection with Modifications or Exchanges of Insurance Contracts,(“SOP 05-1”). SOP 05-1 provides guidance on internal replacements of insurance and investment contracts. An internal replacement is a modification in product benefits, features, rights or coverages that occurs by the exchange of a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. Modifications that result in a new contract that is substantially different from the replaced contract are accounted for as an extinguishment of the replaced contract, and the associated unamortized deferred acquisition cost (“DAC”), unearned revenue liabilities and deferred sales inducements from the replaced contract must be reported as an expense immediately. Modifications resulting in a new contract that is substantially the same as the replaced contract are accounted for as a continuation of the replaced contract. Prior to the adoption of the SOP 05-1, certain internal replacements that did not meet the new criteria were accounted for as continuations of the replaced contract. Therefore, the accounting policy for certain internal replacements has changed as a result of the adoption of SOP 05-1. At adoption, the Company recognized a $146 decrease to deferred acquisition costs, which was accounted for as a reduction to the January 1, 2007 balance of retained earnings.

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Union Security Life Insurance Company of New York

Notes to the Financial Statements (Unaudited)

Nine Months Ended September 30, 2007 and 2006

(in thousands, except per share and share amounts)

On January 1, 2007, the Company adopted FAS No. 155,Accounting for Certain Hybrid Financial Instruments—an amendment of FASB Statements No. 133 (“FAS 133”) and 140(“FAS 155”). This statement resolves issues addressed in FAS 133 Implementation Issue No. D1,Application of Statement 133 to Beneficial Interest in Securitized Financial Assets. FAS 155 (a) permits fair value remeasurement for any hybrid financial instrument that contains an embedded derivative that otherwise would require bifurcation; (b) clarifies which interest-only strips and principal-only strips are not subject to the requirements of FAS 133; (c) establishes a requirement to evaluate beneficial interests in securitized financial assets to identify interests that are freestanding derivatives or that are hybrid financial instruments that contain an embedded derivative requiring bifurcation; (d) clarifies that concentrations of credit risk in the form of subordination are not embedded derivatives; and (e) eliminates restrictions on a qualifying special-purpose entity’s ability to hold passive derivative financial instruments that pertain to beneficial interests that are or contain a derivative financial instrument. FAS 155 also requires presentation within the financial statements that identifies those hybrid financial instruments for which the fair value election has been applied and information on the income statement impact of the changes in fair value of those instruments. The adoption of FAS 155 did not have a material impact on the Company’s results of operations or financial condition.

On January 1, 2007, the Company adopted the provisions of FASB Interpretation No. 48,Accounting for Uncertainty in Income Taxes—an interpretation of FASB Statement No. 109(“FIN 48”). There was no impact as a result of adoption on the Company’s January 1, 2007 retained earnings and there are no unrecognized tax benefits. The Company files income tax returns in the U.S. and state jurisdictions. The Company has substantially concluded all U.S. federal income tax matters for years through 2002. Substantially all state and local income tax matters have been concluded for the years through 1999. The Company’s continuing practice is to recognize interest and/or penalties related to income tax matters in income tax expense. At the date of adoption, the accrual for tax related interest and penalties did not have a material impact on the Company’s results of operations or financial condition.

Recent Accounting Pronouncements Outstanding

In September 2006, the Financial Accounting Standards Board (“FASB”) issued FAS No. 157,Fair Value Measurements(“FAS 157”). FAS 157 defines fair value, addresses how companies should measure fair value when they are required to use a fair value measure for recognition or disclosure purposes under GAAP, and expands disclosures about fair value measurements. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. Therefore, the Company is required to adopt FAS 157 on January 1, 2008. The Company is currently evaluating the requirements of FAS 157 and the potential impact on the Company’s financial statements.

In February 2007, the FASB issued FAS No. 159,The Fair Value Option for Financial Assets and Financial Liabilities(“FAS 159”). FAS 159 provides a choice to measure many financial instruments and certain other items at fair value on specified election dates and requires disclosures about the election of the fair value option.

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Union Security Life Insurance Company of New York

Notes to the Financial Statements (Unaudited)

Nine Months Ended September 30, 2007 and 2006

(in thousands, except per share and share amounts)

Unrealized gains and losses on items for which the fair value option has been elected are reported in earnings. FAS 159 is effective for fiscal years beginning after November 15, 2007. Therefore, the Company is required to adopt FAS 159 on January 1, 2008. The Company is currently evaluating the requirements of FAS 159 and the potential impact on the Company’s financial statements.

4. Retirement and Other Employee Benefits

The Parent sponsors a defined benefit pension plan and certain other post retirement benefits covering employees and certain agents who meet eligibility requirements as to age and length of service. Pension costs allocated to the Company were $31 for the three months ended September 30, 2007 and 2006, and $93 for the nine months ended September 30, 2007 and 2006.

The Company participates in a contributory profit sharing plan, sponsored by the Parent, covering employees and certain agents who meet eligibility requirements as to age and length of service. The amounts expensed by the Company were $21 and $6 for the three months ended September 30, 2007 and 2006, respectively, and $62 and $32 for the nine months ended September 30, 2007 and 2006, respectively.

5. Commitments and Contingencies

The Company is regularly involved in litigation in the ordinary course of business, both as a defendant and as a plaintiff. The Company may from time to time be subject to a variety of legal and regulatory actions relating to the Company’s current and past business operations. While the Company cannot predict the outcome of any pending or future litigation, examination or investigation, the Company does not believe that any pending matter will have a material adverse effect on the Company’s financial condition or results of operations.

The U.S. Second Circuit Court of Appeals in Benesowitz v. Metropolitan Life Ins. Co., ruled that in the state of New York, pre-existing condition clauses are to be treated as presenting a waiting period, rather than an exclusion, to receive disability benefits. The Company continues to review its policies, processes and procedures to determine what impact, if any, the decision has on its business in New York.

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PART I

FINANCIAL INFORMATION

Item 2. Management’s Discussion And Analysis Of Financial Condition And Results Of Operations.

(Dollar amounts in thousands)

Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) addresses the financial condition of Union Security Life Insurance Company of New York (USLICONY or the Company) as of September 30, 2007, compared with December 31, 2006, and its results of operations for the three and nine months ended September 30, 2007, compared with the equivalent 2006 periods. This discussion should be read in conjunction with the Company’s MD&A and annual audited financial statements as of December 31, 2006 included in the Company’s Form 10-K for the year ended December 31, 2006 filed with the U.S. Securities and Exchange Commission (hereafter referred to as the Company’s 2006 Form 10-K) and unaudited interim financial statements and related notes included elsewhere in this Form 10-Q.

Some of the statements in this MD&A and elsewhere in this report may contain forward-looking statements which reflect our current views with respect to, among other things, future events and financial performance. You can identify these forward-looking statements by the use of forward-looking words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of those words or other comparable words. Any forward-looking statements contained in this report are based upon our historical performance and on current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause our actual results to differ materially from those indicated in this report. We believe that these factors include but are not limited to those described under the subsection entitled “Risk Factors” in our 2006 Form 10-K. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this report. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may vary materially from what we projected. Any forward-looking statements you read in this report reflect our current views with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, financial condition, growth strategy and liquidity.

Critical Factors Affecting Results

Our results depend on the adequacy of our product pricing, underwriting and the accuracy of our methodology for the establishment of reserves for future policyholder benefits and claims, returns on invested assets and our ability to manage our expenses. Therefore, factors affecting these items may have a material adverse effect on our results of operations or financial condition.

Critical Accounting Policies and Estimates

Our 2006 Form 10-K described the accounting policies and estimates that are critical to the understanding of our results of operations, financial condition and liquidity. The accounting policies and estimates described in the 2006 Form 10-K were consistently applied to the unaudited interim financial statements for the three and nine months ended September 30, 2007.

Recent Accounting Pronouncements

See – Financial Statement Footnote 3.

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The tables below present information regarding our results of operations:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2007			2006			2007			2006
	(in thousands)
Revenues:
Net earned premiums and other considerations	$	20,231		$	19,979		$	48,745		$	47,151
Net investment income		2,285			2,266			6,814			6,788
Net realized (losses) on investments		(281	)		(96	)		(354	)		(395	)
Amortization of deferred gains on disposal of businesses		211			244			633			731
Fees and other income		17			12			53			30
Total revenues		22,463			22,405			55,891			54,305
Benefits, losses and expenses:
Policyholder benefits		(13,384	)		(11,918	)		(30,567	)		(25,594	)
Selling, underwriting and general expenses (1)		(4,285	)		(4,655	)		(13,673	)		(13,471	)
Total benefits, losses and expenses		(17,669	)		(16,573	)		(44,240	)		(39,065	)
Income before income tax expense		4,794			5,832			11,651			15,240
Income tax expense		(1,641	)		(1,976	)		(4,007	)		(5,224	)
Net income	$	3,153		$	3,856		$	7,644		$	10,016

(1) Includes amortization of deferred acquisition costs and underwriting, general and administrative expenses.

For The Three Months Ended September 30, 2007 Compared to The Three Months Ended September 30, 2006.

Net Income

Net income decreased $703, or 18%, to $3,153 for the three months ended September 30, 2007 from $3,856 for the three months ended September 30, 2006. This decrease is primarily due to less favorable experience in our group disability business written through our Disability Reinsurance Management Services (“DRMS”) distribution channel, partially offset by a decrease in selling, underwriting and general expenses and an increase in net earned premiums and other considerations.

Total Revenues

Total revenues increased $58, to $22,463 for the three months ended September 30, 2007 from $22,405 for the three months ended September 30, 2006. This increase is primarily due to an increase in net earned premiums and other considerations of $252 driven by growth in our group dental business offset by the continued decline of our domestic credit business. This increase was partially offset by an increase in net realized losses on investments of $185 including other than temporary impairments of $81.

Total Benefits, Losses and Expenses

Total benefits, losses and expenses increased $1,096, or 7%, to $17,669 for the three months ended September 30, 2007 from $16,573 for the three months ended September 30, 2006. This increase is due to an increase in policyholder benefits of $1,466 driven by less favorable experience in our group disability business written through DRMS. Partially offsetting this increase is a decrease in selling, underwriting and general expenses of $370 primarily due to the continued decline of our domestic credit insurance business.

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For The Nine Months Ended September 30, 2007 Compared to The Nine Months Ended September 30, 2006.

Net Income

Net income decreased $2,372, or 24%, to $7,644 for the nine months ended September 30, 2007 from $10,016 for the nine months ended September 30, 2006. This decrease in net income is primarily due to very favorable experience in the prior period in our group disability business written through DRMS and less favorable experience in our group life business. These decreases were partially offset by an increase in net earned premiums and other considerations driven by growth in group disability business written through DRMS.

Total Revenues

Total revenues increased $1,586, or 3%, to $55,891 for the nine months ended September 30, 2007 from $54,305 for the nine months ended September 30, 2006. This increase is primarily due to growth in our group disability business written through DRMS, partially offset by the continued decline in our domestic credit insurance business.

Total Benefits, Losses and Expenses

Total benefits, losses and expenses increased $5,175, or 13%, to $44,240 for the nine months ended September 30, 2007 from $39,065 for the nine months ended September 30, 2006. This increase is primarily due to an increase in policyholder benefits of $4,973 driven by very favorable experience in the prior period in our group disability business written through DRMS and less favorable group life experience relative to the prior year.

Item 3. Quantitative And Qualitative Disclosures About Market Risk.

Not required under the reduced disclosure format.

Item 4T. Controls And Procedures.

Evaluation of disclosure controls and procedures under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures as of September 30, 2007. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of that date in providing a reasonable level of assurance that information we are required to disclose in reports we file or furnish under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods in United States Securities and Exchange Commission (“SEC”) rules and forms. Further, our disclosure controls and procedures were effective in providing a reasonable level of assurance that information required to be disclosed by us in such reports is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

PART II

OTHER INFORMATION

Item 1A. Risk Factors.

Our 2006 Annual Report on Form 10-K described our Risk Factors. As discussed in Note 11—Commitments and Contingencies and in Item 1—Legal Proceedings of the Parent’s Quarterly Report on Form 10-Q for the period ended September 30, 2007, additional developments in the Parent’s SEC investigation have occurred since we filed our 2006 Annual Report on Form 10-K. The disclosures in the aforementioned sections of the Parent’s third quarter 2007 10-Q are incorporated by reference into our Risk Factors. Please see the Parent’s third quarter 2007 10-Q filed with the SEC and available on the SEC’s website atwww.sec.gov or through Assurant’s website atwww.assurant.com for further details.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Not required under the reduced disclosure format.

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Item 3. Defaults Upon Senior Securities.

Not required under the reduced disclosure format.

Item 4. Submission of Matters to a Vote of Security Holders.

Not required under the reduced disclosure format.

Item 5. Other Information.

(a) None.

(b) Because all of the Company’s outstanding common stock is held directly by Assurant, Inc., the Company does not file a Schedule 14A and has not adopted any procedures by which security holders may recommend nominees to the registrant’s board of directors.

Item 6. Exhibits

The following exhibits are filed with this report. Exhibits are available upon request at the investor relations section of our website, located at www.assurant.com.

31.1	Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer.
31.2	Rule 13a-14(a)/15d-14(a) Certification of President.
31.3	Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer.
32.1	Certification of Chief Executive Officer of Union Security Life Insurance Company of New York pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of President of Union Security Life Insurance Company of New York pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of The Sarbanes-Oxley Act of 2002.
32.2	Certification of Chief Financial Officer of Union Security Life Insurance Company of New York pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on November 9, 2007.

UNION SECURITY LIFE INSURANCE COMPANY OF NEW YORK
By:	/s/ Michael J. Peninger
Name:	Michael J. Peninger
Title:	Chief Executive Officer
By:	/s/ Manuel J. Becerra
Name:	Manuel J. Becerra
Title:	President
By:	/s/ Tamrha V. Mangelsen
Name:	Tamrha V. Mangelsen
Title:	Treasurer and Chief Financial Officer

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