N.Y. Insurance Law § 7205: Consummation of domestication agreement; transfer of deposits; withdrawal of trusteed assets

§ 7205. Consummation of domestication agreement; transfer of deposits;

withdrawal of trusteed assets. (a) (1) Upon the filing with the

superintendent of a certified copy of the instrument of transfer and

assumption, the domestication of the United States branch shall be

effective.

(2) Thereupon all rights, franchises and interests of such United

States branch in and to every species of property, real, personal and

mixed, and things in action thereunto belonging, shall be deemed

transferred to and vested in the acquiring insurer and it shall be

deemed to have assumed all liabilities of such United States branch.

(3) Simultaneously all deposits of the United States branch held by

superintendents, state officers or other state regulatory agencies

pursuant to state laws shall be deemed held as security for the full

performance by the acquiring insurer of its assumption as direct

liabilities of all the liabilities to policyholders and creditors within

the United States of such United States branch, and such desposits shall

be deemed admitted assets of the acquiring insurer and reported as such

in its annual financial statements and other reports required to be

filed by it in this state.

(4) Upon the ultimate release by any such state officer or agency of

any such deposits, the securities and cash released shall be delivered

and paid over to such acquiring insurer as the lawful successor in

interest to such United States branch.

(b) Contemporaneously with the consummation of the domestication of

the United States branch, notwithstanding the provisions of sections one

thousand three hundred fifteen and one thousand three hundred seventeen

of this chapter, the superintendent shall transfer to the acquiring

insurer's account the securities deposited by such United States branch

in compliance with the provisions of this chapter, and the

superintendent shall consent that the trustee of the trusteed assets

deposited by such United States branch in compliance with the provisions

of this chapter shall withdraw from the trust and transfer and deliver

to the acquiring insurer all assets held by such trustee. However, if a

United States branch is domesticated into a foreign insurer, the

superintendent, unless otherwise satisfied that the interests of

policyholders of in force business and of creditors on outstanding

claims are protected, may defer consent to the withdrawal of so much of

the trusteed assets as in his judgment is reasonably required to protect

such interests as of the date of domestication; and he shall consent to

their withdrawal from time to time as such interests expire.