NY Ins L § 4219 (2021)
2021 New York Laws ISC - Insurance Article 42 - Life Insurance Companies and Accident and Health Insurance Companies and Legal Services Insurance Companies 4219 - Limitation on Accumulation of Surplus of Life Insurance Companies.

§  4219.  Limitation  on  accumulation  of  surplus  of life insurance companies. (a) (1)  Any  domestic  mutual  life  insurance  company  may maintain  a  surplus, above all of its reserves and liabilities required or specifically permitted by this chapter, not exceeding the greatest of (A) eight hundred fifty thousand dollars, or  (B)  ten  percent  of  its policy reserves and policy liabilities, or (C) ten percent of its policy reserves  and  policy  liabilities plus (i) the product of three and its authorized control level RBC as determined in  accordance  with  section one  thousand  three  hundred  twenty-two of this chapter minus (ii) the asset valuation reserve as reported in its annual statement, or (D)  the minimum  amount  of capital and surplus required by law of another state in which the company is authorized to do business.  (2) Any domestic stock life insurance  company  issuing  participating policies  only  or  both participating and non-participating policies or contracts in accordance with subsection (f) of section four thousand two hundred  thirty-one  of  this  article,  may  maintain  a  participating policyholders'  surplus,  above  all  of  its  reserves  and liabilities arising  out  of  participating  policies,  required   or   specifically permitted  by the provisions of this chapter, not exceeding the greatest of (A) two hundred fifty thousand dollars, or (B) ten  percent  of  such policy  reserves and such policy liabilities, or (C) ten percent of such policy reserves and  policy  liabilities  plus  the  amount  derived  by prorating,  based  upon  the  ratio  of participating assets to admitted assets, (i) the product of three and its authorized control level RBC as determined  in  accordance  with  section  one  thousand  three  hundred twenty-two  of  this  chapter  minus (ii) the asset valuation reserve as reported in its annual statement.  (3) In this section, "policy reserves and policy liabilities" includes reserves  and  liabilities  on  outstanding  life  insurance   policies, accident  and health insurance policies and annuity contracts, contracts supplemental thereto or in connection therewith or  provisions  included therein  insuring  against  disability  or against death by accident and including liabilities required under optional modes  of  settlement  and for  dividends  left  on  deposit,  after deducting the net value of its risks reinsured by other solvent assuming insurers. Policy reserves  and liabilities  shall  also  include  the  reserves  and liabilities of the domestic life insurance company and the policy reserves and  liabilities of  any  and all wholly-owned subsidiary life insurance companies of the domestic life insurance company, to the extent  that  the  surpluses  of such  subsidiary life insurance companies are included in the surplus of the domestic life insurance company  for  purposes  of  determining  the limit pursuant to this section.  (4) In the case of a mutual life insurance company that is reorganized into  a  stock life insurance company under section seven thousand three hundred twelve of this chapter, the limitation  contained  in  paragraph one  of  this  subsection  shall  not  affect  that part of the existing surplus of such reorganized company that is allocated  to  participating policies  and contracts of the mutual life insurance company which is in excess of such limitation on the effective date of  the  reorganization, provided such excess, in addition to any further accretions occurring in the  normal  course of business, shall be equitably distributed to these participating policyholders and contractholders over  a  period  not  to exceed ten years.  (b) The superintendent may, for good cause shown, by order, permit any such  company  to maintain a surplus in excess of the maximum prescribed by subsection (a) hereof, for a specified period, not exceeding one year under any one order. The superintendent shall state in  such  order  his  reasons  therefor  and  shall  cause  a statement of such order and such reasons to be published in his next annual report to the legislature.  (c)  This  section shall not apply to any stock life insurance company doing exclusively a non-participating business.