NY Ins L § 1505 (2021)
2021 New York Laws ISC - Insurance Article 15 - Holding Companies 1505 - Transactions Within a Holding Company System Affecting Controlled Insurers.

§  1505.  Transactions  within  a  holding  company  system  affecting controlled insurers. (a) Transactions within a holding company system to which a controlled insurer is a party shall be subject to the following:  (1) the terms shall be fair and equitable;  (2) charges or fees for services performed shall be reasonable; and  (3) expenses incurred and payments received shall be allocated to  the insurer  on  an  equitable  basis in conformity with customary insurance accounting practices consistently applied.  (b) The books,  accounts  and  records  of  each  party  to  all  such transactions  shall  be  so  maintained  as  to  clearly  and accurately disclose the nature and  details  of  the  transactions  including  such accounting  information as is necessary to support the reasonableness of the charges or fees to the respective parties.  (c) The superintendent's prior approval  shall  be  required  for  the following  transactions  between  a  domestic controlled insurer and any person in its holding company system: sales, purchases, exchanges, loans or extensions of credit, or investments, involving five percent or  more of the insurer's admitted assets at last year-end.  (d)  The  following transactions between a domestic controlled insurer and any person in its holding company system may  not  be  entered  into unless  the  insurer  has  notified the superintendent in writing of its intention to enter into any such transaction at least thirty days  prior thereto,  or  with regard to reinsurance treaties or agreements at least forty-five  days  prior  thereto,  or  such  shorter   period   as   the superintendent may permit, and the superintendent has not disapproved it within such period:  (1)  sales,  purchases,  exchanges,  loans or extensions of credit, or investments involving less than five percent of the  insurer's  admitted assets  at  last  year-end,  provided  the  transactions are equal to or exceed:  (A) the lesser of three percent of the insurer's  admitted  assets  or twenty-five percent of capital and surplus at last year-end, with regard to  an accident and health insurance company or a corporation subject to article forty-three of this chapter;  (B) three percent of the insurer's admitted assets at  last  year-end, with regard to a life insurance company; or  (C)  the  lesser  of three percent of the insurer's admitted assets or twenty-five percent of surplus to policyholders at last  year-end,  with regard  to  an  insurer other than as specified in subparagraphs (A) and (B) of this paragraph;  (2) reinsurance treaties or agreements;  (3) rendering of services on a regular or systematic basis; or  (4) any  material  transaction,  specified  by  regulation,  that  the superintendent  determines  may  adversely  affect  the interests of the insurer's policyholders or shareholders.   Nothing herein contained shall be deemed to authorize  or  permit  any transaction  that,  in  the  case  of a non-controlled insurer, would be otherwise contrary to law.  (e)  The  superintendent,  in  reviewing  transactions   pursuant   to subsections  (c) and (d) hereof, shall consider whether they comply with the standards set forth in subsections (a) and (b)  hereof  and  whether they may adversely affect the interests of policyholders.  (f)  This  section  shall not apply to transactions subject to article sixteen or article seventeen or section one thousand four hundred  eight or  any  sections  of  this  chapter  which  impose  notice  or approval requirements greater than those in this section.