N.Y. Insurance Law § 7408: Uniform insurers liquidation act; title; definitions

§ 7408. Uniform insurers liquidation act; title; definitions. (a) This

section and sections seven thousand four hundred nine through seven

thousand four hundred fifteen of this article may be cited as the

uniform insurers liquidation act.

(b) In this act:

(1) "Insurer" means any person, firm, corporation, association, or

aggregation of persons doing an insurance business and subject to the

insurance supervisory authority of, or to liquidation, rehabilitation,

reorganization, or conservation by, the superintendent of financial

services of this state, or the equivalent insurance supervisory official

of another state.

(2) "Delinquency proceeding" means any proceeding commenced against an

insurer for the purpose of liquidating, rehabilitating, reorganizing, or

conserving such insurer.

(3) "Foreign country" means territory not in any state.

(4) "Domiciliary state" means the state in which an insurer is

incorporated or organized, or, as to an insurer incorporated or

organized in a foreign country, the state in which such insurer, having

become authorized to do business in such state, has, at the commencement

of delinquency proceedings, the largest amount of its assets held in

trust and assets held on deposit for the benefit of its policyholders or

policyholders and creditors in the United States; and any such insurer

is deemed to be domiciled in such state.

(5) "Ancillary state" means any state except a domiciliary state.

(6) "Reciprocal state" means any state other than this state in which

in substance and effect the provisions of this act are in force,

including the provisions requiring that the insurance commissioner or

equivalent insurance supervisory official be the receiver of a

delinquent insurer.

(7) "General assets" means all property, real, personal, or otherwise,

not specifically mortgaged, pledged, deposited, or otherwise encumbered

for the security or benefit of specified persons or a limited class of

persons, and as to such specifically encumbered property the term

includes all such property or its proceeds in excess of the amount

necessary to discharge all sums secured thereby. Assets held in trust

and assets held on deposit for the security or benefit of all

policyholders, or all policyholders and creditors in the United States,

are general assets.

(8) "Preferred claim" means any claim with respect to which the law of

a state or of the United States accords priority of payment from the

general assets of the insurer.

(9) "Special deposit claim" means any claim secured by a deposit made

pursuant to statute for the security or benefit of a limited class of

persons, but not including any general assets.

(10) "Secured claim" means any claim secured by mortgage, trust, deed,

pledge, deposit as security, escrow, other security interest, or

otherwise, but not including special deposit claims or claims against

general assets. The term also includes claims which more than four

months prior to the commencement of delinquency proceedings in the state

of the insurer's domicile have become liens upon specific assets by

reason of judicial process.

(11) "Receiver" means receiver, liquidator, rehabilitator, or

conservator as the context may require.