§ 1604 — Registration

New York § 1604

• Jurisdiction: New York
• Law ISC: Insurance
• Art. 16: Subsidiaries of Domestic Property/casualty Insurance Companies and Certain Other Entities

Text

§ 1604. Registration. (a) An authorized domestic insurer shall\nregister with the superintendent within thirty days of becoming subject\nto registration and shall amend the registration within thirty days\nfollowing any material change to the information provided in the\nregistration. The registration shall be in such form and shall contain\nsuch matters as the superintendent prescribes. The superintendent may\ngrant reasonable extensions of the time to register.\n (b)(1) An authorized domestic insurer, other than a domestic insurer\nrequired to register as a controlled insurer pursuant to section one\nthousand five hundred three of this chapter, shall adopt a formal\nenterprise risk management function and shall file an enterprise risk\nreport with the superintendent by April thirtieth of each year. The\nreport shall, to the best of the insurer's knowledge and belief,\nidentify the material risks within any subsidiary that could pose\nenterprise risk to the insurer.\n (2) For the purposes of this article, "enterprise risk" means any\nactivity, circumstance, event, or series of events involving one or more\nsubsidiaries of an insurer that, if not remedied promptly, is likely to\nhave a material adverse effect upon the financial condition or liquidity\nof the insurer, including anything that would cause the insurer's\nrisk-based capital to fall into company action level as set forth in\nsection one thousand three hundred twenty-four of this chapter, or that\nwould cause further transaction of business to be hazardous to the\ninsurer's policyholders or creditors or the public.\n (c) (1) An authorized domestic insurer, other than a domestic insurer\nrequired to register as a controlled insurer pursuant to section one\nthousand five hundred three of this chapter, shall file with the\nsuperintendent an annual group capital calculation by June thirtieth of\neach year when this state is the lead state as determined in accordance\nwith the procedures within the financial analysis handbook adopted by\nthe NAIC, as amended from time to time.\n (2) When the lead state is not this state, an authorized domestic\ninsurer shall file with the superintendent the annual group capital\ncalculation as adopted by its lead state if the authorized domestic\ninsurer has filed the annual group capital calculation with the lead\nstate but the lead state is not willing or able to share the annual\ngroup capital calculation with the superintendent.\n (3) When this state is the lead state, the authorized domestic insurer\nshall complete the annual group capital calculation in accordance with\nthe group capital calculation instructions, which may permit the\nsuperintendent to allow a subsidiary to file the annual group capital\ncalculation.\n (4) When this state is the lead state, an authorized domestic insurer\nshall be exempt from filing an annual group capital calculation if it:\n (A) has only one insurer subsidiary that only writes business and is\nonly licensed in its domestic state and assumes no business from any\nother insurer;\n (B) is required to perform a group capital calculation specified by\nthe United States Federal Reserve Board, except that the authorized\ndomestic insurer shall not be exempt if the superintendent requests the\ngroup capital calculation from the United States Federal Reserve Board\nunder the terms of information sharing agreements in effect and the\nFederal Reserve Board cannot share the calculation with the\nsuperintendent;\n (C) has a non-United States group-wide supervisor that is located\nwithin a reciprocal jurisdiction, as described in part one hundred\ntwenty-five of title eleven of the official compilation of codes, rules\nand regulations of this state, that recognizes the United States state\nregulatory approach to group supervision and group capital; or\n (D)(i) provides information to the superintendent, either directly or\nindirectly through the group-wide supervisor, who has determined such\ninformation is satisfactory to allow the superintendent to comply with\nthe NAIC group supervision approach, as detailed in the NAIC financial\nanalysis handbook; and\n (ii) has a non-United States group-wide supervisor that is not in a\nreciprocal jurisdiction and that recognizes and accepts, as specified by\nthe superintendent in a regulation, the group capital calculation as the\nworld-wide group capital assessment for United States systems that\noperate in that jurisdiction.\n (5) Notwithstanding subparagraphs (C) and (D) of paragraph four of\nthis subsection, when this state is the lead state, the superintendent\nshall require the group capital calculation for United States operations\nof any non-United States-based system where, after any necessary\nconsultation with other supervisors or officials, it is deemed\nappropriate by the superintendent for prudential oversight and solvency\nmonitoring purposes or for ensuring the competitiveness of the insurance\nmarketplace.\n (6) Notwithstanding the exemptions from filing the group capital\ncalculation set forth in paragraph four of this subsection, when this\nstate is the lead state, the superintendent has the discretion to exempt\nan authorized domestic insurer from filing an annual group capital\ncalculation or accept a limited annual group capital calculation filing\nor report in accordance with criteria as specified by the superintendent\nin a regulation.\n (7) When this state is the lead state, if the superintendent\ndetermines that an authorized domestic insurer no longer meets one or\nmore of the requirements for an exemption from filing the group capital\ncalculation under this subsection, the authorized domestic insurer shall\nfile the group capital calculation at the next annual filing date unless\ngiven an extension by the superintendent based on reasonable grounds\nshown.\n (d)(1) An authorized domestic insurer, other than a domestic insurer\nrequired to register as a controlled insurer pursuant to section one\nthousand five hundred three of this chapter, that has a subsidiary that\nis scoped into the NAIC liquidity stress test framework shall file the\nresults of a specific year's annual liquidity stress test with the\nsuperintendent when this state is the lead state as determined by the\nprocedures within the financial analysis handbook adopted by the NAIC\nand as amended from time to time.\n (2) When the lead state is not this state, an authorized domestic\ninsurer shall file with the superintendent the results of a specific\nyear's liquidity stress test as adopted by its lead state if the\nauthorized domestic insurer has filed the results with the lead state\nbut the lead state is not willing or able to share the results with the\nsuperintendent.\n (3) When this state is the lead state, the performance of, and filing\nof the results from, a specific year's liquidity stress test shall\ncomply with the NAIC liquidity stress test framework.\n (4) When this state is the lead state, any change to the NAIC\nliquidity stress test framework or to the data year for which the scope\ncriteria are to be measured shall be effective on January first of the\nyear following the calendar year when such changes are adopted.\n (5) When this state is the lead state, an insurer meeting at least one\nthreshold of the scope criteria shall be considered scoped into the NAIC\nliquidity stress test framework for the specified data year unless the\nsuperintendent, in consultation with the NAIC financial stability task\nforce, or its successor, determines the insurer shall not be scoped into\nthe NAIC liquidity stress test framework for that data year.\n (6) When this state is the lead state, an insurer that does not\ntrigger at least one threshold of the scope criteria shall be considered\nscoped out of the NAIC liquidity stress test framework for the specified\ndata year, unless the superintendent, in consultation with the NAIC\nfinancial stability task force, or its successor, determines the insurer\nshall be scoped into the NAIC liquidity stress test framework for that\ndata year.\n (7) The superintendent, in consultation with the NAIC financial\nstability task force, or its successor, shall assess the concern of\nwishing to avoid having insurers scoped in and out of the NAIC liquidity\nstress test framework on a frequent basis as part of the determination\nfor an insurer.\n (e) No insurer, insurance producer, or other person shall make,\npublish, disseminate, circulate, issue, or place before the public, or\ncause directly or indirectly to be made, published, disseminated,\ncirculated, issued, or placed before the public, in this state, in a\nnewspaper, magazine, or other publication, or in the form of a notice,\ncircular, pamphlet, letter, or poster, or over any radio or television\nstation or any electronic means of communication available to the\npublic, or in any other way as an advertisement, announcement, or\nstatement containing a representation or statement with regard to the\ngroup capital calculation, group capital ratio, liquidity stress test\nresults, or supporting disclosures for such test, or any component\nderived in the calculation thereof, of any authorized domestic insurer\nor subsidiary thereof, provided, however, that an insurer may publish,\nwith the superintendent's prior approval, announcements in a written\npublication to rebut any materially false statement with respect to the\nforegoing if the insurer is able to demonstrate to the superintendent\nwith substantial proof the falsity of such statement or the\ninappropriateness, as the case may be, and if the sole purpose of the\nannouncement is to rebut the materially false statement.\n (f) For the purpose of this section:\n (1) "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 domestic insurer or subsidiary.\n (2) "NAIC" means the National Association of Insurance Commissioners.\n (3) "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 publication 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 domestic insurer or subsidiary.\n (4) "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