NY Ins L § 1501 (2021)
2021 New York Laws ISC - Insurance Article 15 - Holding Companies 1501 - Definitions; Determinations.

§  1501.  Definitions; determinations. (a) In this article, unless the context shall otherwise require:  (1) "Person" means  an  individual,  partnership,  firm,  association, corporation,  joint-stock  company,  trust,  any  similar  entity or any combination of the foregoing acting in concert.  (2) "Control", including the terms "controlling", "controlled by"  and "under  common control with", means the possession direct or indirect of the power to direct  or  cause  the  direction  of  the  management  and policies   of   a  person,  whether  through  the  ownership  of  voting securities, by contract (except  a  commercial  contract  for  goods  or non-management  services) or otherwise; but no person shall be deemed to control another person solely by reason  of  his  being  an  officer  or director of such other person. Subject to subsection (c) hereof, control shall  be  presumed  to exist if any person directly or indirectly owns, controls or holds with the power to vote ten  percent  or  more  of  the voting securities of any other person.  (3) "Holding  company"  means  any  person  who directly or indirectly controls any authorized insurer.  (4) "Controlled  insurer"  means  an  authorized  insurer   controlled directly or indirectly by a holding company.  (5) "Controlled  person"  means  any  person  other  than a controlled insurer, who is controlled directly or indirectly by a holding company.  (6) "Holding company system" means a holding company together with its controlled insurers and controlled persons.  (7) "Enterprise risk" means  any  activity,  circumstance,  event,  or series  of  events  involving  the  holding  company system that, if not remedied promptly, is likely to have a material adverse effect upon  the financial  condition  or liquidity of the insurer or its holding company system, including anything that would  cause  the  insurer's  risk-based capital  to  fall  into company action level as set forth in section one thousand  three  hundred  twenty-two  or  one  thousand  three   hundred twenty-four  of this chapter, or that would cause further transaction of business to be hazardous to the insurer's policyholders or creditors  or the public.  (b)  Notwithstanding the provisions of paragraph two of subsection (a) of this section, the superintendent  may  determine,  after  notice  and opportunity  to be heard, that a person exercises directly or indirectly either alone or pursuant to an agreement with one or more other  persons such  a  controlling  influence  over  the  management or policies of an authorized insurer as to make it necessary or appropriate in the  public interest  or  for  the  protection  of  the  insurer's  policyholders or shareholders that the person be deemed to control the insurer.  (c) The superintendent may determine upon application that any  person does  not  or  will  not upon the taking of some proposed action control another person. Such determination shall be made within thirty  days  or such  further  period as the superintendent may prescribe. The filing of the application in good faith by any person shall relieve the  applicant from any obligation or liability imposed by this article with respect to the  subject  of  the  application,  except  as contained in section one thousand five hundred six of this article, until the superintendent  has acted  upon the application. The superintendent may prospectively revoke or modify his determination, after notice and opportunity to  be  heard, whenever  in  his judgment revocation or modification is consistent with this article.  (d) For the purposes of this article only, every foreign life  insurer which  is authorized to do business in this state which is controlled by a person not authorized to do an insurance business in this  state,  and which, during its three preceding fiscal years taken together, or during  any  lesser  period  of  time  if  it  has been licensed to transact its business in New York only for such lesser period of time, has written an average of more gross premiums in the state of  New  York  than  it  has written  in its state of domicile during the same period, and such gross premiums written constitute twenty percent or more of  its  total  gross premiums  written everywhere in the United States for such three year or lesser period, as reported in its three most recent  annual  statements, shall  be  deemed  a  domestic  insurer,  provided written notice of the applicability of this  subsection  is  given  to  such  company  by  the superintendent prior to this article being applicable.