NY Ins L § 7703 (2021)
2021 New York Laws ISC - Insurance Article 77 - The Life Insurance Company Guaranty Corporation of New York Act 7703 - Scope.

§  7703.  Scope.  (a)  (1)  This  article  shall  apply to direct life insurance  policies,  health  insurance  policies,  annuity   contracts, funding   agreements,  and  supplemental  contracts  issued  by  a  life insurance company licensed to  transact  life  or  health  insurance  or annuities  in  this  state  at the time the policy, contract, or funding agreement was issued or on the  date  of  entry  of  a  court  order  of liquidation  or rehabilitation with respect to such a company that is an impaired or insolvent insurer, as the case may be.  (2) Except as otherwise provided in this section, this  article  shall apply  to  the  policies, contracts, and funding agreements specified in paragraph one of this subsection with regard to a person who is:  (A) an owner or  certificate  holder  under  a  policy,  contract,  or funding agreement and in each case who:  (i) is a resident; or  (ii)  is  not  a  resident,  but  only  under  all  of  the  following conditions:  (I) the insurer that issued the  policy,  contract,  or  agreement  is domiciled in this state;  (II)  the  state  or  states in which the person resides has or have a guaranty entity similar to the corporation created by this article; and  (III) the person is not eligible for coverage by a guaranty entity  in any  other  state  because the insurer was not licensed or authorized in that state at the time specified in that state's guaranty entity law; or  (B) the beneficiary, assignee, or payee of  the  person  specified  in subparagraph  (A)  of  this  paragraph,  regardless  of where the person resides.  (3) Except as otherwise provided in this section:  (A) with regard to a group annuity contract (or portion  of  any  such contract)  that  does not guarantee annuity benefits with respect to any specific individual identified in the contract, this article shall apply to a person who is the owner of such a contract:  (i) if the contract is issued to or  in  connection  with  a  specific benefit  plan where the plan sponsor has its principal place of business in  this  state;  provided,  however,  that  for  the  purpose  of  this subparagraph:  (I) "plan sponsor" shall mean:  (aa)  the  employer  in  the  case  of  a  benefit plan established or maintained by a single employer;  (bb)  the  employee  organization  in  the  case  of  a  benefit  plan established  or  maintained  by  an employee organization, provided that "employee organization" shall mean any labor union or  any  organization of  any  kind,  or  any  agency  or  employee  representation committee, association, group, or plan, in which  employees  participate  and  that exists  for  the purpose, in whole or in part, of dealing with employers concerning an employee benefit plan,  or  other  matters  incidental  to employment  relationships,  or  any  employees'  beneficiary association organized for the purpose in whole or in part, of  establishing  such  a plan; or  (cc) in the case of a benefit plan established or maintained by two or more  employers  or  jointly  by  one  or more employers and one or more employee organizations,  the  association,  committee,  joint  board  of trustees,  or  other similar group of representatives of the parties who establish or maintain the benefit plan; and  (II) "principal place of business" shall mean:  (aa) the state in which the individuals who establish policy  for  the direction,  control, and coordination of the operations of the entity as a whole primarily exercise that function, except that if more than fifty percent of the participants in the benefit plan are employed in a single  state, then that state shall be deemed to  be  the  principal  place  of business of the plan sponsor; or  (bb)  with  regard  to  a  plan sponsor of a benefit plan described in subitem (cc) of  clause  (I)  of  this  item,  the  principal  place  of business,  as determined pursuant to subitem (aa) of this clause, of the employer or employee organization that has the largest investment in the benefit plan; or  (ii) issued to or in connection with a government lottery if the owner is a resident; and  (B) with regard to a structured settlement annuity, this section shall apply to a person  who  is  a  payee  under  the  structured  settlement annuity,  or the beneficiary of a payee if the payee is deceased, if the payee (or beneficiary):  (i) is a resident, regardless of where the  owner  of  the  structured settlement annuity resides; or  (ii) is not a resident, but only under the following conditions:  (I) (aa) the owner of the structured settlement annuity is a resident; or  (bb) the owner of the structured settlement annuity is not a resident, but  the  insurer  that  issued  the  structured  settlement  annuity is domiciled in this state and the state in which the owner resides  has  a guaranty entity similar to the corporation created by this article; and  (II)  neither  the  payee  (or  beneficiary)  nor  the  owner  of  the structured settlement annuity is eligible for  coverage  by  a  guaranty entity  of  the  state  in  which  the  payee  (or beneficiary) or owner resides.  (b) This article shall not apply to:  (1) that portion or part of a variable life insurance policy, variable annuity contract or variable funding  agreement  not  guaranteed  by  an insurer;  (2)  that  portion  or part of any policy, contract or agreement under which the risk is borne by the holder thereof;  (3) any policy, contract, or agreement, or part  thereof,  assumed  by the impaired or insolvent insurer under a contract of reinsurance, other than reinsurance for which assumption certificates have been issued;  (4)  any  policy,  contract,  or  agreement  issued  by or through the facilities of the New York Insurance  Exchange,  Inc.,  or  any  similar entity, or pursuant to article sixty-three of this chapter;  (5)  any  policy, contract, or agreement issued or issued for delivery outside the United States, to the extent it covers persons not  citizens or permanent residents of the United States; and  (6)  any  policy,  contract, or agreement payable other than in United States dollars.  (c) This article shall not apply to a person:  (1) who is a payee, or the beneficiary of a  payee  if  the  payee  is deceased, of an owner resident if the payee (or beneficiary) is afforded any coverage by a guaranty entity of another state; or  (2)  covered  under  subparagraph (A) of paragraph three of subsection (a) of this section if the guaranty entity of another state provides any coverage to the person.