N.Y. Insurance Law § 1702: Definitions

§ 1702. Definitions. As used in this article: (a) "Subsidiary" means

subsidiaries of the types described in subsection (b) of section one

thousand seven hundred four of this article and subsidiaries acquired or

held under this article, section one thousand four hundred five or

section four thousand two hundred forty of this chapter, but shall not

include a subsidiary acquired or held under section one thousand four

hundred four of this chapter or a subsidiary acquired or held by an

insurer authorized to make investments by subsection (c) of section one

thousand four hundred three of this chapter.

(b) "Parent corporation" means a parent corporation of a type

described in subsection (a), (b) or (c) of section one thousand seven

hundred one of this article.

(c) "Holding company operating subsidiary" means a subsidiary (other

than a separate account subsidiary) engaged or organized to engage in

either or both of the following activities (1) the ownership and

management of other subsidiaries, and (2) the raising of capital (debt

or equity) that could be loaned to, or invested in, other subsidiaries

or loaned to the parent corporation, provided that any such subsidiary

may in addition engage in the ownership and management of assets

authorized as investments for the parent corporation.

(d) "Investment subsidiary" means a subsidiary (other than a separate

account subsidiary) engaged or organized to engage exclusively in the

ownership and management of assets (other than equity securities of

subsidiaries) authorized as investments for the parent corporation and

of other investment subsidiaries.

(e) "Separate account subsidiary" means a subsidiary acquired or held

under section four thousand two hundred forty of this chapter.

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

series of events involving one or more subsidiaries of a parent

corporation that, if not remedied promptly, is likely to have a material

adverse effect upon the financial condition or liquidity of the parent

corporation, including anything that would cause the parent

corporation's risk-based capital to fall into company action level as

set forth in section one thousand three hundred twenty-two of this

chapter, or that would cause further transaction of business to be

hazardous to the insurer's policyholders or creditors or the public.

(g) "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 parent corporation or subsidiary.

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

(i) "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 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 parent corporation or subsidiary.

(j) "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.