N.Y. Insurance Law § 1710: Divestiture of control; superintendent's power to order disposition of subsidiaries

§ 1710. Divestiture of control; superintendent's power to order

disposition of subsidiaries.

(a) Any parent corporation seeking to divest its controlling interest

in a domestic insurer, in any manner, shall file with the

superintendent, with a copy to the insurer, notice of its proposed

divestiture at least thirty days prior to the cessation of control,

provided, however that this subsection shall not apply if notice is

provided as required by subsection (b) of section one thousand seven

hundred one of this article.

(b) In addition to the powers granted to the superintendent elsewhere

in this chapter (including, without limitation, section one hundred nine

of this chapter and section three hundred nine of the financial services

law), the superintendent may, at any time, order a parent corporation to

dispose of any subsidiary, if the superintendent finds, after notice and

an opportunity to be heard, either:

(1) that its acquisition or continued retention is or was not

permitted by the provisions of this article; or

(2) except in the case of a subsidiary then exempted by the provisions

of subsection (a) or (b) of section one thousand seven hundred four of

this article, that its continued retention is materially adverse to the

interests of the parent corporation's policyholders or subscribers.