N.Y. ISC Law § 1312 — New York Code / Act ISC / Article 13 / Section 1312
Trusteed surplus of alien insurers; impairment
Status: in_force

§ 1312. Trusteed surplus of alien insurers; impairment.  (a) (1) In\naddition to other requirements of this chapter every authorized alien\ninsurer shall, not later than the first day of March in each year, file\nwith the superintendent a statement (herein called a "trusteed surplus\nstatement"), on a form prescribed by him, showing at last year-end:\n  (A) all its general state deposits, meaning assets within the United\nStates deposited with officers of any state in trust for the security of\nall its policyholders, or policyholders and creditors, within the United\nStates;\n  (B) all its special state deposits, meaning assets within the United\nStates deposited with officers of any state in trust for the security of\nits policyholders, or policyholders and creditors, in a particular\nstate;\n  (C) all its trusteed assets, meaning assets within the United States\nheld by a trustee or trustees for the security of all its policyholders,\nor policyholders and creditors, within the United States;\n  (D) if a life insurance company, the amount of its policy loans to\npolicyholders within the United States, not exceeding the amount of the\nlegal reserve required on each such policy;\n  (E) all its reserves and other liabilities arising out of policies or\nobligations issued, assumed or incurred in the United States; and\n  (F) such further information as may be necessary to apply the\nprovisions of this section.\n  (2) In determining the net amount of the insurer's liabilities in the\nUnited States, a deduction may be made: (i) for reinsurance on losses\nwith authorized insurers, less unpaid reinsurance premiums, with a\nschedule showing by companies the amount deducted, and (ii) for unearned\npremiums on agents' balances or uncollected premiums not more than\nninety days past due. Any liability on an asset not considered in such\nstatement may be applied against such asset.\n  (3) No credit shall be allowed in such statement for any special state\ndeposit held for the exclusive benefit of policyholders, or\npolicyholders and creditors, of any particular state except as an offset\nagainst the liabilities of such alien insurer in such state.\n  (4) The accrued interest at date of statement on assets deposited with\nstates and trustees shall be allowed in such statement, where such\ninterest is collected by the states or trustees.\n  (b) (1) Such trusteed surplus statement shall be signed and verified\nby the United States manager, attorney-in-fact, or a duly empowered\nassistant United States manager, of the alien insurer. The items of\nsecurities and other property held under trust deeds shall be certified\nto by the United States trustee or trustees. The superintendent may at\nany time require a further statement of the same kind and of such date\nas he may determine.\n  (2) Every report on examination of the United States branch of an\nalien insurer shall include a trusteed surplus statement as of the date\nof examination in addition to the general statement of the financial\ncondition of such United States branch.\n  (c) (1) The aggregate value of the insurer's general state deposits\nand trusteed assets less the aggregate net amount of all of its\nliabilities and reserves in the United States as determined in\naccordance with this section shall be known as its "trusteed surplus" in\nthe United States. Whenever it appears to the superintendent from any\nsuch statement or any report that an alien insurer's trusteed surplus is\nreduced below the greater of the minimum capital required of, or the\nminimum surplus to policyholders required to be maintained by, a\ndomestic insurer licensed to transact the same kinds of insurance, he\nshall determine the amount of such impairment and order the insurer,\nthrough its United States manager or attorney, to eliminate such\nimpairment within such period as he designates, not more than ninety\ndays from service of the order. He may also by order revoke or suspend\nsuch insurer's license or prohibit it from issuing new policies in the\nUnited States while such impairment exists.\n  (2) If at the expiration of such designated period such insurer has\nnot satisfied the superintendent that such impairment has been\neliminated, the superintendent may proceed against such insurer pursuant\nto the provisions of article seventy-four of this chapter as an insurer\nwhose condition is such that its further transaction of business in the\nUnited States will be hazardous to its policyholders, its creditors or\nthe public in the United States.\n