§ 99 — Powers of the superintendent

New York § 99

• Jurisdiction: New York
• Law DEA: Defense Emergency Act 1951 784/51
• Art. 7-A: Insurance

Text

§ 99. Powers of the superintendent. 1. If at any time during an acute\nemergency, the number of directors or acting directors of a domestic\norganization who are capable of acting shall be less than three, the\nsuperintendent shall have the power to designate additional acting\ndirectors in such number as will bring to three the number of directors\nand acting directors who are capable of acting.\n 2. To resolve controversy as to the power of any group of persons\npurporting to act as an emergency board of directors so to act, the\nsuperintendent shall, upon a determination that such action will tend to\npromote the safe and sound and orderly conduct of the business of any\ndomestic organization, have power to issue orders declaring that any\nsuch group shall or shall not have the powers of an emergency board of\ndirectors, or confirming, modifying or vacating in whole or in part any\naction taken or purportedly taken by any such group or removing any\nacting director.\n 3. (a) At any time after an attack, upon his determination that such\naction will tend to promote certainty as to the powers of organizations\nor individuals pursuant to this article or that such action is desirable\nto enable organizations to take preparatory precautions prior to the\noccurrence of an acute emergency, the superintendent shall have power to\ndeclare that any provision of this article which he may specify shall be\noperative with respect to any domestic organization or to the New York\nbusiness of any other organization which he may designate. Upon such\ndeclaration such organization and its directors, officers, acting\ndirectors and acting officers shall have all powers conferred by such\nprovisions of this article. The failure of the superintendent so to\ndeclare shall not be deemed to limit the powers of any organization or\nits directors, officers, acting directors or acting officers where an\nacute emergency exists in fact.\n (b) At any time after the commencement of an acute emergency or after\nthe superintendent shall have declared any provision of this article\noperative pursuant to paragraph (a) of this subdivision, upon his\ndetermination that an organization is able, in whole or in part, to\ncarry on its business in compliance with its charter and the laws other\nthan this article, the superintendent shall have power to declare that\nany provision of this article which he may specify shall be inoperative\nwith respect to any domestic organization or to the New York business of\nany other organization which he may designate. Upon such declaration,\nsuch organization shall be governed by its charter and the provisions of\nlaw other than this article, except insofar as other provisions of this\narticle remain operative.\n 4. Upon his determination that, as a result of an acute emergency, the\nbusiness and affairs of an organization cannot otherwise be conducted in\na safe and sound manner, the superintendent may forthwith take\npossession of the business and property of the organization within this\nstate or, if a domestic organization its business and property wherever\nsituated. The provisions of sections five hundred seventeen through five\nhundred twenty-four, inclusive, of the insurance law shall be applicable\nin any case in which the superintendent takes possession of an\norganization pursuant to this subdivision as though the organization\nwere an insurer which the superintendent had taken possession pursuant\nto sections five hundred twelve and five hundred sixteen of such law,\nexcept that no such provision shall be applicable which the\nsuperintendent shall have declared inapplicable pursuant to this\nsubdivision. The superintendent shall have power to declare inapplicable\nany such provision upon his determination that the same is inappropriate\nor unnecessary to protect the interests of the public or the\nstockholders or creditors of the organization, in view of the acute\nemergency and the nature of the organization.\n 5. The powers given the superintendent by subdivisions two and four of\nthis section shall be exercised by him only in the event that there is\nno court of competent jurisdiction available to which an application can\nbe made for an order permitting him to exercise such powers with respect\nto a particular organization; provided, further, that the powers\nconferred by subdivision four shall not be exercised in the case of an\norganization which is not insolvent within the meaning of section\nninety-three of the insurance law, unless the superintendent finds that\nsuch organization lacks personnel able to manage its business in the\ninterests of the public, its stockholders and policyholders.\n 6. The superintendent shall have power to issue general and specific\nregulations, directives and orders consistent with and in furtherance of\nthe purposes of this article.\n