N.Y. Insurance Law § 1104: Revocation or suspension of license; restriction of license authority or limitation on premiums written

§ 1104. Revocation or suspension of license; restriction of license

authority or limitation on premiums written. (a) The superintendent may

revoke any license issued to any foreign or alien insurer to do an

insurance business in this state if, after notice to and hearing, he

finds that such insurer has failed to comply with any requirement

imposed upon it by the provisions of this chapter and if in his judgment

such revocation is reasonably necessary to protect the interests of the

people of this state. The superintendent may in his discretion reinstate

any such license if he finds that a ground for such revocation no longer

exists.

(b) The superintendent shall revoke the certificate of authority of

any corporation or agent convicted of violating section two thousand six

hundred three of this chapter.

(c) The superintendent may suspend the license, restrict the license

authority, or limit the amount of premiums written in this state of any

accident and health insurance company, property/casualty insurance

company, co-operative property/casualty insurance company, title

insurance company, mortgage guaranty insurance company, reciprocal

insurer, Lloyds underwriters or nonprofit property/casualty insurance

company, except those insurers subject to the provisions of subsection

(c) of section two thousand three hundred forty-three of this chapter,

if after a hearing on a record, unless waived by the affected insurer,

the superintendent determines that such insurer's surplus to

policyholders is not adequate in relation to the insurer's outstanding

liabilities or to its financial needs. All matters pertaining to a

proceeding or determination pursuant to this subsection shall be

confidential and not subject to subpoena or public inspection under

article six of the public officers law or any other statute, except to

the extent that the superintendent finds release of information

necessary to protect the public. The hearing shall be initiated within

twenty days after written notice to the insurer. Any determination

pursuant to this subsection shall contain findings specifying the

factors deemed significant in regard to the particular insurer, and

shall set forth the reasons supporting the suspension, restriction or

limitation ordered by the superintendent. The following factors shall be

considered by the superintendent in making such determination:

(1) the size of the insurer as measured by its admitted assets,

capital and surplus to policyholders, reserves, premium writings,

insurance in force and other appropriate criteria, with such surplus to

policyholders for foreign insurers adjusted in accordance with section

one thousand four hundred thirteen of this chapter;

(2) the extent to which the insurer's business is diversified among

the several kinds of insurance;

(3) the number and size of risks insured in each kind of insurance and

the insurer's loss experience in regard to such risks;

(4) the extent of geographical dispersion of the insurer's risks;

(5) the nature and extent of the insurer's reinsurance program;

(6) the quality, diversification and liquidity of the insurer's

investment portfolio;

(7) the recent past and projected future trends in regard to the

insurer's loss experience and in the size of the insurer's surplus to

policyholders;

(8) the surplus to policyholders maintained by other comparable

insurers;

(9) the adequacy of the insurer's reserves; and

(10) the quality and liquidity of investments in subsidiaries made

pursuant to this chapter.

(d) The superintendent shall identify and review those licensed

property/casualty insurers needing immediate or targeted regulatory

attention, and shall include the number of insurers so identified in the

report required by section three hundred thirty-four of this chapter.

Such report shall also include the name of each licensed

property/casualty insurer placed in formal conservatorship,

rehabilitation or liquidation during the preceding year. Nothing herein

shall be construed to restrict or diminish any right or power of the

superintendent under any other provision of this chapter.