NY Ins L § 7719 (2021)
2021 New York Laws ISC - Insurance Article 77 - The Life Insurance Company Guaranty Corporation of New York Act 7719 - Resolution Facility.

§  7719.  Resolution facility. (a) The corporation may incorporate one or more not-for-profit corporations, known as a resolution facility,  in connection  with the liquidation of an insolvent domestic life insurance company under article seventy-four of this chapter for  the  purpose  of administering  and  disposing  of the business of the insolvent domestic life insurance company.  (b)  To  the  extent  that  the  provisions  of   the   not-for-profit corporation  law  do not conflict with the provisions of this section or the  plan  of  operation  of  the  resolution  facility  hereunder,  the not-for-profit  corporation  law  shall apply to the resolution facility and the  resolution  facility  shall  be  a  non-charitable  corporation pursuant  to  the  not-for-profit  corporation  law.  If  an  applicable provision of this section or the plan of  operation  of  the  resolution facility  hereunder  relates  to a matter embraced in a provision of the not-for-profit corporation law but is not in  conflict  therewith,  then both  provisions  shall  apply. The corporation shall be a member of the resolution facility, and other persons,  including  the  life  insurance guaranty  corporation  continued  under  article  seventy-five  of  this chapter and guaranty entities of other states, may become members of the resolution  facility  in  accordance  with  the  resolution   facility's certificate of incorporation and plan of operation.  (c)  In  addition  to  its  certificate of incorporation, a resolution facility shall submit to the superintendent a  plan  of  operation,  and amendments   thereto,   necessary   or  suitable  to  assure  the  fair, reasonable, and equitable administration of the resolution facility. The plan of operation, and any amendments thereto,  shall  become  effective upon  approval  in  writing by the superintendent. The plan of operation shall constitute the bylaws of the resolution facility.  (d) A resolution facility may:  (1) guarantee,  assume,  or  reinsure,  or  cause  to  be  guaranteed, assumed,  or reinsured, the covered policies, or arrange for replacement by policies found by the superintendent to be substantially  similar  to the covered policies;  (2)  exercise,  for  the  purposes  of  this article and to the extent approved by the superintendent, the powers of a domestic life  insurance company,  but  in  no  case  may the resolution facility issue insurance policies,  annuity  contracts,  funding  agreements,   or   supplemental contracts other than those issued to perform the contractual obligations of the impaired or insolvent insurer;  (3)  assure  payment  of  the contractual obligations of the insolvent insurer; and  (4) provide such moneys, pledges, notes, guarantees, or other means as are reasonably necessary to discharge its duties.  (e) A resolution facility shall not be subject to  any  provisions  of this chapter or the financial services law except:  (1) this section; and  (2)  sections  seven  thousand  seven hundred fourteen, seven thousand seven hundred fifteen, and seven thousand seven hundred sixteen of  this article,  which  shall  apply  in  the  same manner as they apply to the corporation.  (f) Notwithstanding subsection (e) of this section, the superintendent may address to the resolution facility any inquiry in  relation  to  its transactions  or condition or any matter connected therewith pursuant to section three hundred eight of this chapter.  (g) (1) If the superintendent determines that the resolution  facility is  not  administering  and  disposing  of  the business of an insolvent domestic  life  insurance  company  consistent   with   the   resolution facility's  certificate  of  incorporation,  plan  of operation, or this  section, then the superintendent shall provide notice to the  resolution facility  and  the resolution facility shall have thirty days to respond to the superintendent and cure the defect.  (2)  If,  after  thirty  days, the superintendent continues to believe that the resolution facility is not administering and disposing  of  the business of an insolvent domestic life insurance company consistent with the   resolution   facility's  certificate  of  incorporation,  plan  of operation, or this section, then the superintendent  may  apply  to  the court  for  an  order  directing  the resolution facility to correct the defect or take other appropriate actions.