N.Y. Insurance Law § 1604: Registration

§ 1604. Registration. (a) An authorized domestic insurer shall

register with the superintendent within thirty days of becoming subject

to registration and shall amend the registration within thirty days

following any material change to the information provided in the

registration. The registration shall be in such form and shall contain

such matters as the superintendent prescribes. The superintendent may

grant reasonable extensions of the time to register.

(b)(1) An authorized domestic insurer, other than a domestic insurer

required to register as a controlled insurer pursuant to section one

thousand five hundred three of this chapter, shall adopt a formal

enterprise risk management function and shall file an enterprise risk

report with the superintendent by April thirtieth of each year. The

report shall, to the best of the insurer's knowledge and belief,

identify the material risks within any subsidiary that could pose

enterprise risk to the insurer.

(2) For the purposes of this article, "enterprise risk" means any

activity, circumstance, event, or series of events involving one or more

subsidiaries of an insurer that, if not remedied promptly, is likely to

have a material adverse effect upon the financial condition or liquidity

of the insurer, 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-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.

(c) (1) An authorized domestic insurer, other than a domestic insurer

required to register as a controlled insurer pursuant to section one

thousand five hundred three of this chapter, shall file with the

superintendent an annual group capital calculation by June thirtieth of

each year when this state is the lead state as determined in accordance

with the procedures within the financial analysis handbook adopted by

the NAIC, as amended from time to time.

(2) When the lead state is not this state, an authorized domestic

insurer shall file with the superintendent the annual group capital

calculation as adopted by its lead state if the authorized domestic

insurer has filed the annual group capital calculation with the lead

state but the lead state is not willing or able to share the annual

group capital calculation with the superintendent.

(3) When this state is the lead state, the authorized domestic insurer

shall complete the annual group capital calculation in accordance with

the group capital calculation instructions, which may permit the

superintendent to allow a subsidiary to file the annual group capital

calculation.

(4) When this state is the lead state, an authorized domestic insurer

shall be exempt from filing an annual group capital calculation if it:

(A) has only one insurer subsidiary that only writes business and is

only licensed in its domestic state and assumes no business from any

other insurer;

(B) is required to perform a group capital calculation specified by

the United States Federal Reserve Board, except that the authorized

domestic insurer shall not be exempt if the superintendent requests the

group capital calculation from the United States Federal Reserve Board

under the terms of information sharing agreements in effect and the

Federal Reserve Board cannot share the calculation with the

superintendent;

(C) has a non-United States group-wide supervisor that is located

within a reciprocal jurisdiction, as described in part one hundred

twenty-five of title eleven of the official compilation of codes, rules

and regulations of this state, that recognizes the United States state

regulatory approach to group supervision and group capital; or

(D)(i) provides information to the superintendent, either directly or

indirectly through the group-wide supervisor, who has determined such

information is satisfactory to allow the superintendent to comply with

the NAIC group supervision approach, as detailed in the NAIC financial

analysis handbook; and

(ii) has a non-United States group-wide supervisor that is not in a

reciprocal jurisdiction and that recognizes and accepts, as specified by

the superintendent in a regulation, the group capital calculation as the

world-wide group capital assessment for United States systems that

operate in that jurisdiction.

(5) Notwithstanding subparagraphs (C) and (D) of paragraph four of

this subsection, when this state is the lead state, the superintendent

shall require the group capital calculation for United States operations

of any non-United States-based system where, after any necessary

consultation with other supervisors or officials, it is deemed

appropriate by the superintendent for prudential oversight and solvency

monitoring purposes or for ensuring the competitiveness of the insurance

marketplace.

(6) Notwithstanding the exemptions from filing the group capital

calculation set forth in paragraph four of this subsection, when this

state is the lead state, the superintendent has the discretion to exempt

an authorized domestic insurer from filing an annual group capital

calculation or accept a limited annual group capital calculation filing

or report in accordance with criteria as specified by the superintendent

in a regulation.

(7) When this state is the lead state, if the superintendent

determines that an authorized domestic insurer no longer meets one or

more of the requirements for an exemption from filing the group capital

calculation under this subsection, the authorized domestic insurer shall

file the group capital calculation at the next annual filing date unless

given an extension by the superintendent based on reasonable grounds

shown.

(d)(1) An authorized domestic insurer, other than a domestic insurer

required to register as a controlled insurer pursuant to section one

thousand five hundred three of this chapter, that has a subsidiary that

is scoped into the NAIC liquidity stress test framework shall file the

results of a specific year's annual liquidity stress test with the

superintendent when this state is the lead state as determined by the

procedures within the financial analysis handbook adopted by the NAIC

and as amended from time to time.

(2) When the lead state is not this state, an authorized domestic

insurer shall file with the superintendent the results of a specific

year's liquidity stress test as adopted by its lead state if the

authorized domestic insurer has filed the results with the lead state

but the lead state is not willing or able to share the results with the

superintendent.

(3) When this state is the lead state, the performance of, and filing

of the results from, a specific year's liquidity stress test shall

comply with the NAIC liquidity stress test framework.

(4) When this state is the lead state, any change to the NAIC

liquidity stress test framework or to the data year for which the scope

criteria are to be measured shall be effective on January first of the

year following the calendar year when such changes are adopted.

(5) When this state is the lead state, an insurer meeting at least one

threshold of the scope criteria shall be considered scoped into the NAIC

liquidity stress test framework for the specified data year unless the

superintendent, in consultation with the NAIC financial stability task

force, or its successor, determines the insurer shall not be scoped into

the NAIC liquidity stress test framework for that data year.

(6) When this state is the lead state, an insurer that does not

trigger at least one threshold of the scope criteria shall be considered

scoped out of the NAIC liquidity stress test framework for the specified

data year, unless the superintendent, in consultation with the NAIC

financial stability task force, or its successor, determines the insurer

shall be scoped into the NAIC liquidity stress test framework for that

data year.

(7) The superintendent, in consultation with the NAIC financial

stability task force, or its successor, shall assess the concern of

wishing to avoid having insurers scoped in and out of the NAIC liquidity

stress test framework on a frequent basis as part of the determination

for an insurer.

(e) No insurer, insurance producer, or other person shall make,

publish, disseminate, circulate, issue, or place before the public, or

cause directly or indirectly to be made, published, disseminated,

circulated, issued, or placed before the public, in this state, in a

newspaper, magazine, or other publication, or in the form of a notice,

circular, pamphlet, letter, or poster, or over any radio or television

station or any electronic means of communication available to the

public, or in any other way as an advertisement, announcement, or

statement containing a representation or statement with regard to the

group capital calculation, group capital ratio, liquidity stress test

results, or supporting disclosures for such test, or any component

derived in the calculation thereof, of any authorized domestic insurer

or subsidiary thereof, provided, however, that an insurer may publish,

with the superintendent's prior approval, announcements in a written

publication to rebut any materially false statement with respect to the

foregoing if the insurer is able to demonstrate to the superintendent

with substantial proof the falsity of such statement or the

inappropriateness, as the case may be, and if the sole purpose of the

announcement is to rebut the materially false statement.

(f) For the purpose of this section:

(1) "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 domestic insurer or subsidiary.

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

(3) "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 publication 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 domestic insurer or subsidiary.

(4) "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.