N.Y. Insurance Law § 1112: Reciprocal provisions as to taxes, license fees, deposits, and other requirements

§ 1112. Reciprocal provisions as to taxes, license fees, deposits, and

other requirements. (a) (1) If, by the laws, or the action of any public

official, of any other state, any insurer organized or domiciled in this

state, or its duly authorized agents, shall be, required to deposit

securities in such other state to protect policyholders or for any other

purpose, or shall be required to pay taxes, fines, penalties, fees for

licenses or certificates of authority or any other sum for the privilege

of doing business in such other state, or shall be subjected to any

restrictions, obligations, conditions or penalties, imposed for such

privilege, and such requirements are greater than those required of

similar insurers organized or domiciled in such other state by the laws

of this state for the privilege of doing business herein, then all

similar insurers organized or domiciled in such other state and their

duly authorized agents in this state shall make like deposits for like

purposes with the superintendent, and pay him for taxes, fines,

penalties, fees for licenses or certificates of authority or for any

other requirement for the privilege of doing business in this state, an

amount determined in the manner prescribed by such other state, and

shall be subjected to such greater requirements imposed by such other

state upon similar insurers of this state and their duly authorized

agents.

(2) (i) For the amount due under this subsection for the calendar year

nineteen hundred eighty-nine, an initial payment shall be made by each

insurer subject to this subsection of an amount equal to the lesser of

(a) ninety percent of the amount finally determined to be due under this

subsection for the calendar year nineteen hundred eighty-seven or (b)

eighty percent of the amount finally determined to be due under this

subsection for the calendar year nineteen hundred eighty-nine. Such

initial payment shall be made on or before March fifteenth, nineteen

hundred ninety.

(ii) For the amount due under this subsection for calendar years after

nineteen hundred eighty-nine, an estimated payment shall be due and

payable on or before the fifteenth day of December. This payment shall

be equal to the lesser of (a) ninety percent of the amount finally

determined to be due under this subsection for the second preceding

calendar year or (b) eighty percent of the amount finally determined to

be due under this subsection for the calendar year.

(iii) If any insurer fails to pay all or any part of the initial

payment or estimated payment due pursuant to subparagraph (i) or (ii) of

this paragraph, it shall be deemed to have made an underpayment. There

shall be added to the amount due pursuant to paragraph one of this

subsection, an amount at the rate set for underpayments by the

commissioner of taxation and finance pursuant to section one thousand

ninety-six of the tax law, minus four percentage points, or if no rate

is set, at the rate of six percent per annum upon the amount of the

underpayment for the period of the underpayment. In computing the amount

of any interest required to be paid, such interest shall not be

compounded. The amount of the underpayment shall be, with respect to the

initial payment or any estimated payment, the excess of the amount

required to be paid over the amount, if any, paid on or before the last

day prescribed for such payment. If the superintendent demands payment

of the initial payment or any estimated payment, and if such amount is

paid within ten days after the date of such demand, interest on the

amount so paid shall not be imposed for the period after the date of

such demand. No portion of the interest imposed pursuant to this

subparagraph may be waived.

(iv) Notwithstanding the provisions of section sixteen of the state

finance law, interest shall be allowed and paid at the rate set for

overpayments by the commissioner of taxation and finance pursuant to

section one thousand ninety-six of the tax law, or if no rate is set, at

the rate of six percent per annum upon any overpayment, from the date

payment was due to a date (to be determined by the superintendent)

preceding the date of a refund check by not more than thirty days. In

the case of a payment which is made after the last date prescribed for

payment of such payment, no interest shall be allowed or paid for any

day before the date on which the payment was made. In computing the

amount of interest required to be paid, such interest shall not be

compounded. No interest shall be allowed or paid if the amount thereof

is less than one dollar.

(v) If the period for which the amount is imposed pursuant to

paragraph one of this subsection is less than twelve months, every

insurer shall make estimated payments in accordance with regulations of

the superintendent.

(b) If the superintendent finds that by the laws or official acts of

any foreign country, insurers organized in this state are arbitrarily

denied the privilege of doing business in such foreign country, or are

subjected to unreasonable requirements therein, he may revoke the

licenses of all insurers of such country doing business in this state,

and may refuse to issue licenses to every insurer of such country

thereafter applying for a license to do business in this state, or in

lieu thereof, he may impose like requirements upon every insurer of such

country, until he shall find that such arbitrary denial or unreasonable

requirements no longer apply.

(c) If, by the existing or future laws of any other state, any broker

resident within this state and duly licensed as such under this chapter

may not be licensed as a broker in such other state, then no broker

resident in such other state shall be licensed as a broker within this

state, anything in this chapter to the contrary notwithstanding. If a

license fee exceeding forty dollars per annum is imposed by any other

state for issuing a license to a broker resident within this state, or

the amount of commissions which may be paid to such broker on premiums

on risks located in any other state shall be limited under the laws of

such state, then, all brokers resident in such other state shall upon

being licensed in this state pay a like fee in lieu of that prescribed

by this chapter, and insurance companies authorized to transact business

in this state shall not pay to any such nonresident broker any

commissions on premiums on risks located in this state exceeding those

which the laws of such other state permit brokers of this state to

receive on premiums on risks located in such other state.

* (d) (1) Should the insurance department, commissioner, director, or

other similar insurance regulatory official of any other state or

territory of the United States impose any sanctions, fines, penalties,

financial or deposit requirements, prohibitions, restrictions,

regulatory requirements, or other obligations of any kind upon any

insurance company organized or chartered in this state and licensed to

transact business in such other state or territory, because of the

failure of the New York insurance department to obtain, maintain, or

receive accreditation certification or any similar form of approval,

compliance, or acceptance from, by, or as a member of the National

Association of Insurance Commissioners, or any committee, task force,

working group, or advisory committee thereof, or because of the failure

of the department to comply with any directive, financial annual

statement requirement, model act or regulation, market conduct or

financial examination report or requirement, or any report of any kind

of the National Association of Insurance Commissioners, or any

committee, task force, working group, or advisory committee thereof, the

superintendent shall without exception or exclusion, impose upon any and

all insurance companies organized or chartered in such other state or

territory and licensed to do business in this state the same sanctions,

fines, penalties, financial or deposit requirements, prohibitions,

restrictions, regulatory requirements, or other obligations imposed upon

the insurance companies of this state.

(2) To the extent that it would be detrimental to the adequate and

proper regulation of insurance in this state to use existing employees

or resources of the department in order to comply in a timely manner

with paragraph (1) of this subsection, the superintendent may engage

such other qualified persons and services as may be necessary. The

superintendent shall recover all of the costs of such compliance in the

manner prescribed in section 313 of the insurance law.

* NB Expired March 31, 1995

* (e) The provisions of this section shall not apply to insurance

companies organized or domiciled in a state or country whose laws do not

impose retaliatory taxes or other charges or which grant, on a

reciprocal basis, exemptions therefrom to insurance companies organized

or domiciled in this state.

* NB Expired March 31, 1995, relettering expired on such date is

actually (d) from 367/84 on such date