N.Y. Insurance Law § 1501: Definitions; determinations

§ 1501. Definitions; determinations. (a) In this article, unless the

context shall otherwise require:

(1) "Person" means an individual, partnership, firm, association,

corporation, joint-stock company, trust, any similar entity or any

combination of the foregoing acting in concert.

(2) "Control", including the terms "controlling", "controlled by" and

"under common control with", means the possession direct or indirect of

the power to direct or cause the direction of the management and

policies of a person, whether through the ownership of voting

securities, by contract (except a commercial contract for goods or

non-management services) or otherwise; but no person shall be deemed to

control another person solely by reason of his being an officer or

director of such other person. Subject to subsection (c) hereof, control

shall be presumed to exist if any person directly or indirectly owns,

controls or holds with the power to vote ten percent or more of the

voting securities of any other person.

(3) "Holding company" means any person who directly or indirectly

controls any authorized insurer.

(4) "Controlled insurer" means an authorized insurer controlled

directly or indirectly by a holding company.

(5) "Controlled person" means any person other than a controlled

insurer, who is controlled directly or indirectly by a holding company.

(6) "Holding company system" means a holding company together with its

controlled insurers and controlled persons.

(7) "Enterprise risk" means any activity, circumstance, event, or

series of events involving the holding company system that, if not

remedied promptly, is likely to have a material adverse effect upon the

financial condition or liquidity of the insurer or its holding company

system, including anything that would cause the insurer's risk-based

capital to fall into company action level as set forth in section one

thousand three hundred twenty-two or one thousand three hundred

twenty-four of this chapter, or that would cause further transaction of

business to be hazardous to the insurer's policyholders or creditors or

the public.

(8) "Group capital calculation instructions" means the group capital

calculation instructions as adopted by the NAIC and as amended by the

NAIC from time to time in accordance with the procedures adopted by the

NAIC, except where such instructions conflict with the laws of this

state and subject to exceptions the superintendent may take in a

regulation upon a written finding that the exceptions would not be

unduly burdensome on the holding company or insurer.

(9) "NAIC" means the National Association of Insurance Commissioners.

(10) "NAIC liquidity stress test framework" means an NAIC publication

that includes a history of the NAIC's development of regulatory

liquidity stress testing, the scope criteria applicable for a specific

data year, and the liquidity stress test instructions and reporting

templates for a specific data year, such scope criteria, instructions

and reporting template being as adopted by the NAIC and as amended by

the NAIC from time to time in accordance with the procedures adopted by

the NAIC, except where such instructions conflicts with the laws of this

state and subject to exceptions the superintendent may take in a

regulation upon a written finding that the exceptions would not be

unduly burdensome on the holding company or insurer.

(11) "Scope criteria" means the designated exposure bases along with

minimum magnitudes thereof for the specified data year, used to

establish a preliminary list of insurers considered scoped into the NAIC

liquidity stress test framework for that data year.

(b) Notwithstanding the provisions of paragraph two of subsection (a)

of this section, the superintendent may determine, after notice and

opportunity to be heard, that a person exercises directly or indirectly

either alone or pursuant to an agreement with one or more other persons

such a controlling influence over the management or policies of an

authorized insurer as to make it necessary or appropriate in the public

interest or for the protection of the insurer's policyholders or

shareholders that the person be deemed to control the insurer.

(c) The superintendent may determine upon application that any person

does not or will not upon the taking of some proposed action control

another person. Such determination shall be made within thirty days or

such further period as the superintendent may prescribe. The filing of

the application in good faith by any person shall relieve the applicant

from any obligation or liability imposed by this article with respect to

the subject of the application, except as contained in section one

thousand five hundred six of this article, until the superintendent has

acted upon the application. The superintendent may prospectively revoke

or modify his determination, after notice and opportunity to be heard,

whenever in his judgment revocation or modification is consistent with

this article.

(d) For the purposes of this article only, every foreign life insurer

which is authorized to do business in this state which is controlled by

a person not authorized to do an insurance business in this state, and

which, during its three preceding fiscal years taken together, or during

any lesser period of time if it has been licensed to transact its

business in New York only for such lesser period of time, has written an

average of more gross premiums in the state of New York than it has

written in its state of domicile during the same period, and such gross

premiums written constitute twenty percent or more of its total gross

premiums written everywhere in the United States for such three year or

lesser period, as reported in its three most recent annual statements,

shall be deemed a domestic insurer, provided written notice of the

applicability of this subsection is given to such company by the

superintendent prior to this article being applicable.