N.Y. Insurance Law § 1510: Violations; penalties; jurisdiction over non-domiciliaries

§ 1510. Violations; penalties; jurisdiction over non-domiciliaries.

(a) In addition to any other penalty provided by law, the superintendent

may, upon the wilful failure of any person within a holding company

system to comply with this article or any regulation or order

promulgated hereunder:

(1) proceed under article seventy-four of this chapter with respect to

a domestic insurer within the holding company system;

(2) revoke or refuse to renew the authority to do business in this

state of an authorized foreign or alien insurer within the holding

company system or refuse to issue such authority to any other insurer in

the system;

(3) request the attorney general to commence a proceeding utilizing

the procedures of sections seven thousand four hundred seventeen and

seven thousand four hundred eighteen of this chapter to enforce

compliance or, where appropriate, for an order directing the termination

of control of a domestic insurer; or

(4) direct that, in addition to any other penalty provided by law,

such person forfeit to the people of this state a sum not exceeding five

hundred dollars for a first violation and two thousand five hundred

dollars for any subsequent violation. An additional sum not exceeding

two thousand five hundred dollars shall be imposed for each month during

which any such violation shall continue.

(b) If the superintendent finds after notice and opportunity to be

heard that any domestic controlled insurer or any policyholder thereof

has suffered any loss or damage because of the wilful violation of this

article, or of any regulation or order promulgated hereunder, by any

person within the insurer's holding company system, he may request the

attorney general to maintain a civil action in the name of the people of

the state or intervene in an action brought by or on behalf of the

insurer or policyholder for the recovery of compensatory damages for the

benefit of the insurer or policyholder or for other appropriate relief.

(c) As to any cause of action enumerated in this section a court may

exercise personal jurisdiction over any non-domiciliary who controls or

is an officer or director of a person who controls a domestic insurer.

(d) Whenever it appears to the superintendent that any person has

committed a violation of section one thousand five hundred six of this

article that prevents the full understanding of the enterprise risk

posed to the insurer by the holding company system, the violation may

serve as an independent basis for disapproving dividends or

distributions or as grounds for rehabilitation or liquidation pursuant

to article seventy-four of this chapter.