§ 1501 — Definitions; determinations

New York § 1501

• Jurisdiction: New York
• Law ISC: Insurance
• Art. 15: Holding Companies

Text

§ 1501. Definitions; determinations. (a) In this article, unless the\ncontext shall otherwise require:\n (1) "Person" means an individual, partnership, firm, association,\ncorporation, joint-stock company, trust, any similar entity or any\ncombination of the foregoing acting in concert.\n (2) "Control", including the terms "controlling", "controlled by" and\n"under common control with", means the possession direct or indirect of\nthe power to direct or cause the direction of the management and\npolicies of a person, whether through the ownership of voting\nsecurities, by contract (except a commercial contract for goods or\nnon-management services) or otherwise; but no person shall be deemed to\ncontrol another person solely by reason of his being an officer or\ndirector of such other person. Subject to subsection (c) hereof, control\nshall be presumed to exist if any person directly or indirectly owns,\ncontrols or holds with the power to vote ten percent or more of the\nvoting securities of any other person.\n (3) "Holding company" means any person who directly or indirectly\ncontrols any authorized insurer.\n (4) "Controlled insurer" means an authorized insurer controlled\ndirectly or indirectly by a holding company.\n (5) "Controlled person" means any person other than a controlled\ninsurer, who is controlled directly or indirectly by a holding company.\n (6) "Holding company system" means a holding company together with its\ncontrolled insurers and controlled persons.\n (7) "Enterprise risk" means any activity, circumstance, event, or\nseries of events involving the holding company system that, if not\nremedied promptly, is likely to have a material adverse effect upon the\nfinancial condition or liquidity of the insurer or its holding company\nsystem, including anything that would cause the insurer's risk-based\ncapital to fall into company action level as set forth in section one\nthousand three hundred twenty-two or one thousand three hundred\ntwenty-four of this chapter, or that would cause further transaction of\nbusiness to be hazardous to the insurer's policyholders or creditors or\nthe public.\n (8) "Group capital calculation instructions" means the group capital\ncalculation instructions as adopted by the NAIC and as amended by the\nNAIC from time to time in accordance with the procedures adopted by the\nNAIC, except where such instructions conflict with the laws of this\nstate and subject to exceptions the superintendent may take in a\nregulation upon a written finding that the exceptions would not be\nunduly burdensome on the holding company or insurer.\n (9) "NAIC" means the National Association of Insurance Commissioners.\n (10) "NAIC liquidity stress test framework" means an NAIC publication\nthat includes a history of the NAIC's development of regulatory\nliquidity stress testing, the scope criteria applicable for a specific\ndata year, and the liquidity stress test instructions and reporting\ntemplates for a specific data year, such scope criteria, instructions\nand reporting template being as adopted by the NAIC and as amended by\nthe NAIC from time to time in accordance with the procedures adopted by\nthe NAIC, except where such instructions conflicts with the laws of this\nstate and subject to exceptions the superintendent may take in a\nregulation upon a written finding that the exceptions would not be\nunduly burdensome on the holding company or insurer.\n (11) "Scope criteria" means the designated exposure bases along with\nminimum magnitudes thereof for the specified data year, used to\nestablish a preliminary list of insurers considered scoped into the NAIC\nliquidity stress test framework for that data year.\n (b) Notwithstanding the provisions of paragraph two of subsection (a)\nof this section, the superintendent may determine, after notice and\nopportunity to be heard, that a person exercises directly or indirectly\neither alone or pursuant to an agreement with one or more other persons\nsuch a controlling influence over the management or policies of an\nauthorized insurer as to make it necessary or appropriate in the public\ninterest or for the protection of the insurer's policyholders or\nshareholders that the person be deemed to control the insurer.\n (c) The superintendent may determine upon application that any person\ndoes not or will not upon the taking of some proposed action control\nanother person. Such determination shall be made within thirty days or\nsuch further period as the superintendent may prescribe. The filing of\nthe application in good faith by any person shall relieve the applicant\nfrom any obligation or liability imposed by this article with respect to\nthe subject of the application, except as contained in section one\nthousand five hundred six of this article, until the superintendent has\nacted upon the application. The superintendent may prospectively revoke\nor modify his determination, after notice and opportunity to be heard,\nwhenever in his judgment revocation or modification is consistent with\nthis article.\n (d) For the purposes of this article only, every foreign life insurer\nwhich is authorized to do business in this state which is controlled by\na person not authorized to do an insurance business in this state, and\nwhich, during its three preceding fiscal years taken together, or during\nany lesser period of time if it has been licensed to transact its\nbusiness in New York only for such lesser period of time, has written an\naverage of more gross premiums in the state of New York than it has\nwritten in its state of domicile during the same period, and such gross\npremiums written constitute twenty percent or more of its total gross\npremiums written everywhere in the United States for such three year or\nlesser period, as reported in its three most recent annual statements,\nshall be deemed a domestic insurer, provided written notice of the\napplicability of this subsection is given to such company by the\nsuperintendent prior to this article being applicable.\n