§ 7402 — Grounds for rehabilitation of domestic insurer

New York § 7402

• Jurisdiction: New York
• Law ISC: Insurance
• Art. 74: Rehabilitation, Liquidation, Conservation and Dissolution of Insurers

Text

§ 7402. Grounds for rehabilitation of domestic insurer. The\nsuperintendent may apply under this article for an order directing him\nto rehabilitate a domestic insurer which:\n (a) Is insolvent within the meaning of section one thousand three\nhundred nine of this chapter.\n (b) Has refused to submit its books, papers, accounts or affairs to\nthe reasonable inspection of the superintendent, his deputy or examiner.\n (c) Has failed or refused to comply, within the time designated by the\nsuperintendent, with an order of the superintendent, pursuant to law, to\nmake good an impairment of its capital, or minimum surplus to\npolicyholders, if a stock insurer, or of its minimum surplus, if a\nmutual insurer, a reciprocal insurer, Lloyds underwriters or a\nco-operative fire insurance corporation.\n (d) Has transferred or attempted to transfer, by contract of\nreinsurance or otherwise, substantially its entire property or business,\nor entered into any transaction which merges substantially its entire\nproperty or business into the property or business of any other\ncorporation, association, society, order, firm or individual, without\nhaving first obtained the approval of the superintendent.\n (e) Is found, after examination, to be in such condition that its\nfurther transaction of business will be hazardous to its policyholders,\ncreditors, or the public.\n (f) Has wilfully violated its charter or any law of the state.\n (g) Has an officer who refused to be examined under oath, concerning\nits affairs.\n (h) If organized under article five-a, six, seven, eight, ten or ten-b\nof the former insurance law constituting chapter twenty-eight of the\nconsolidated laws of nineteen hundred nine, or if organized as a mutual\nor non-stock insurer under article nine-a, nine-c, ten, eleven-a,\neleven-b, twelve or fourteen of the former insurance law constituting\nchapter twenty-eight of the consolidated laws in effect immediately\nbefore the effective date of this chapter or article forty-one,\nforty-two, forty-four, forty-five, sixty-one or sixty-six of this\nchapter, including amendments thereto in force at the time of such\norganization, is found to be in such condition, after examination, that\nit could not meet the requirements for incorporation and authorization\nspecified in such articles except with respect to having any required\ninitial surplus.\n (i) Has ceased to do the business of insurance for a period of one\nyear as provided in subsection (b) of section one thousand two hundred\nthree of this chapter.\n (j) Has commenced voluntary liquidation or dissolution, or attempts to\ncommence or prosecute any action or proceeding to liquidate its business\nor affairs, or to dissolve its corporate charter, or to procure the\nappointment of a receiver, trustee, custodian, or sequestrator under any\nlaw except this article.\n (k) Has been the subject of an application for the appointment of a\nreceiver, trustee, custodian or sequestrator of the insurer or its\nproperty, or if a receiver, trustee, custodian, or sequestrator is\nappointed by a federal court or if such appointment is imminent.\n (l) Has consented to such an order through a majority of its\ndirectors, shareholders, or members.\n (m) Has not organized or completed its organization and obtained a\nlicense or certificate authorizing it to commence the doing of an\ninsurance business within one year from the date of its incorporation,\nas provided in subsection (a) of section one thousand two hundred three\nof this chapter.\n (n) Has failed or refused to take such steps as may be necessary to\nremove from office any officer or director whom the superintendent has\nfound, after notice to and hearing of such insurer and of such officer\nor director, to be a dishonest or untrustworthy person.\n (o) Has an occurrence of an authorized control level event or a\nmandatory control level event pursuant to subsection (f) or (g) of\nsection one thousand three hundred twenty-two or subsection (f) or (g)\nof section one thousand three hundred twenty-four of this chapter.\n