N.Y. Insurance Law § 1313: Contents of advertisements and other public announcements concerning financial condition of insurers

§ 1313. Contents of advertisements and other public announcements

concerning financial condition of insurers. (a) (1) Except as provided

in subsection (g) hereof or permitted by regulation, every advertisement

or other public announcement published, issued or distributed in this

state by any domestic or foreign insurer, a subsidiary thereof, a

holding company or controlled person as defined by section one thousand

five hundred one of this chapter, or by any agent of any of the

foregoing, purporting to make known the insurer's separate financial

condition, shall show the amount of its admitted assets, liabilities and

reserves required or permitted by law, and its surplus to policyholders,

and shall correspond with its last verified statement (annual or

quarterly, at its option) made to the superintendent. Such surplus to

policyholders shall show the amount of the insurer's paid up capital

stock, if any.

(2) The provisions of paragraph one hereof shall not apply to an

advertisement or other public announcement showing only the insurer's

capital paid up, or its surplus and capital, if any, separately or

combined, but such items shall not be in excess of the corresponding

items shown on the insurer's last verified statement (annual or

quarterly, at its option) made to the superintendent.

(b) (1) Every advertisement or other public announcement, published,

issued or distributed in this state by any alien insurer doing business

in this state, a subsidiary thereof, a holding company or controlled

person as defined by section one thousand five hundred one of this

chapter, or by any agent of any of the foregoing, purporting to make

known the separate financial condition of the insurer, shall show as

assets only its admitted assets held by its United States branch, its

liabilities and reserves required by law, and its surplus to

policyholders in the United States, and shall correspond with the

insurer's last verified statement (annual or quarterly, at its option)

made to the superintendent. Such surplus to policyholders shall show the

amount of the statutory deposit of such United States branch.

(2) Notwithstanding the provisions of paragraph one hereof, any

authorized life insurance company or fraternal benefit society organized

under the laws of Canada or any province thereof may use in its

advertising in this state a statement of its complete financial

condition, in addition to its statement of admitted assets and

liabilities in the United States, if a similar domestic insurer is

permitted by the laws of Canada or the provinces thereof in which it

does an insurance business to advertise therein its complete financial

condition on a corresponding basis.

(c) No statement of separate financial condition shall be published,

issued or distributed as provided in subsection (a) or (b) hereof unless

it or a footnote clearly shows the amount of securities, included in

admitted assets, which are pledged as collateral for any loan or

guaranty, or which are otherwise not available to pay losses and claims

or are not held to protect the insurer's policyholders or creditors.

(d) No insurer doing business in this state nor any subsidiary

thereof, or holding company or controlled person as defined in section

one thousand five hundred one of this chapter nor any agent of any of

the foregoing, shall in any advertisement or other public announcement

make any statement or communication to the effect that the insurer has,

or expects to have, reinsurance by any named assuming insurer not

authorized to do such reinsurance business in this state, or to the

effect that the insurer's policies are guaranteed wholly or partly by

any other person, insurer or institution.

(e) Nothing in this section shall apply to reports issued to

shareholders or government agencies or instrumentalities by a holding

company or controlled person as defined in section one thousand five

hundred one of this chapter or prohibit any supplemental reference

concerning an insurer's separate financial condition on the basis of

actual market values of its securities or the inclusion of supplemental

factual information with respect to the separate financial condition of

such insurer in a report issued by such insurer to its shareholders or

policyholders.

(f) Advertisements and other public announcements directed primarily

at calling the attention of policyholders or prospective policyholders

to an insurer and containing a statement of the separate financial

condition of the holding company system shall also contain a statement

of the separate financial condition of the insurer which shall comply

with this section.

(g) Consolidated financial statements of an authorized insurer and any

of its subsidiaries may be used only to the extent authorized by the

superintendent or required by any government agency or instrumentality.