NY Ins L § 107 (2021)
2021 New York Laws ISC - Insurance Article 1 - General Provisions 107 - Definitions of Terms of General Use in This Chapter.

§  107.  Definitions  of  terms of general use in this chapter. (a) In this chapter, unless the context otherwise requires:  (1) "Accident and health insurance  company",  means  any  corporation having power to do the kinds of insurance business specified in item (i) of paragraph three of subsection (a) of section one thousand one hundred thirteen  of  this  chapter  or  items  (i)  and (ii) of such paragraph, provided such company does not have power to do any other kind or  kinds of insurance business.  (2) "Accredited reinsurer" means an assuming insurer not authorized to do   an  insurance  business  in  this  state  but  which  (i)  presents satisfactory evidence to the superintendent that it meets the applicable standards of solvency required in this state, (ii) is in compliance with the conditions prescribed by regulation under which a ceding insurer may be allowed credit  for  reinsurance  recoverable  from  an  insurer  not authorized  in  this  state,  and  (iii)  has  received a certificate of recognition as an accredited  reinsurer  issued  by  the  superintendent pursuant  to  such  regulation;  provided  that  no  insurer shall be an accredited reinsurer with respect to any kind of insurance not  provided for in such certificate.  (3)  "Admitted assets" means assets of an insurer which conform to the requirements of section one thousand three hundred one of this chapter.  (4) "Affiliate" means a corporation a  majority  of  whose  shares  is owned  or  controlled  by shareholders, directors or officers of another corporation, who own or control a majority of the shares  of  the  other corporation.  (5)  "Alien insurer" means any insurer incorporated or organized under the laws of any foreign nation, or of  any  province  or  territory  not included under the definition of foreign insurer.  (6)  "American  institution"  means an institution created or existing under the laws of the United States of America or of any state, district or territory thereof.  (7)  "Articles  of  association",  when  used  in  reference   to   an unincorporated  association,  means the basic instrument prescribing the powers, purposes and organization of the association.  (8) "Assuming insurer" means an insurer which,  under  a  contract  of reinsurance,  incurs  to  another insurer, called the ceding insurer, an obligation the performance  of  which  is  contingent  upon  the  ceding insurer's incurring liability or loss under its contract or contracts of insurance, guaranty or suretyship made with third persons.  (9)  "At  last  year-end" means the end of the next preceding calendar year.  (10) "Authorized insurer" means an insurer authorized as such to do an insurance business in this state in compliance  with  this  chapter,  by reason of a license so to do issued and in force pursuant to the laws of this  state  or  of a corporate charter granted and in force pursuant to the laws of this state, but not including any  insurer  herein  exempted from  compliance  with  the  requirement  that it obtain a license to do business.  (11)  "Board  of  directors"  means  the   body   having   power   and responsibility  for  management  and  control  of  a corporation and the advisory committee or similar body having such power in reference  to  a reciprocal insurer or Lloyds underwriters.  (12)  "Capital",  when used in reference to a stock insurance company, means the aggregate par value of all classes of shares of capital  stock issued and outstanding.  (13)  "Ceding  insurer" means the insurer to which an assuming insurer is obligated.  (14) "Charter" means the basic instrument, by  whatever  name  called, prescribing the powers, purposes and organization of a corporation.  (15) "Company" means a corporation.  (16)  "Control".  Except  for  the purposes of article fifteen of this chapter, "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 an institution, whether through the ownership of voting securities, by contract or otherwise.  (17)  "Department"  means the department of financial services of this state.  (18) "Deputy" means a deputy superintendent of financial  services  of this state.  (19)  "Domestic  insurer" means any authorized insurer incorporated or organized under any law of this state.  (20) "Firm" means a partnership,  limited  or  unlimited,  general  or special.  (21)  "Foreign  insurer"  means  any insurer incorporated or organized under the laws of any state, as herein defined, other than this state.  (22) "Fraternal benefit society" has the meaning  ascribed  to  it  by subsection  (a)  of  section  four  thousand  five  hundred  one of this chapter.  (23) "Independent insurance agent" has the meaning ascribed to  it  by section two thousand one hundred one of this chapter.  (24)  "Institution"  means  a  corporation,  a joint-stock company, an association, a trust, a business partnership, a business  joint  venture or any similar entity.  (25)  "Insurance  agent" has the meaning ascribed to it by section two thousand one hundred one of this chapter.  (26) "Insurance broker" has the meaning ascribed to it by section  two thousand one hundred one of this chapter.  (27)  "Insurance  contract"  has the meaning ascribed to it by section one thousand one hundred one of this chapter.  (28) "Life insurance company" means any corporation having power to do either one or both of the  kinds  of  insurance  business  specified  in paragraphs  one  and  two  of subsection (a) of section one thousand one hundred thirteen of this chapter.  (29) "Lloyds underwriters" means any aggregation of  individuals,  who under  a  common  name  engage  in  the business of insurance for profit through  an  attorney-in-fact   having   authority   to   obligate   the underwriters  severally, within such limits as may be lawfully specified in the power of attorney, on contracts of insurance made  or  issued  by such  attorney-in-fact,  in the name of such aggregation of individuals, to and with any person or persons insured.  (30) "Minimum surplus" means the minimum amount by which the  admitted assets  of  an insurer without capital stock must exceed its liabilities in order to be permitted to do business in this state.  (31) "Minor" or "infant" means a person who has not attained  the  age of eighteen years.  (32) "Mortgage" includes a deed of trust.  (33)   "Obligations"  includes  bonds,  debentures,  notes  and  other evidences of indebtedness (whether or not liability for payment  extends beyond  the security therefor) as well as participation interests in any of the foregoing.  (34) "Officer" means any person charged  with  active  management  and control,  in  an  executive  capacity,  of the affairs of a corporation, including the president, vice-president, secretary, assistant secretary, treasurer, assistant treasurer, general  counsel,  actuary,  comptroller  and  any  other person appointed or elected by the board of directors to exercise similar powers, and including the manager, attorney-in-fact, or other person appointed or elected by the board of directors to  exercise similar  powers,  of a United States branch of an alien insurer, and the attorney-in-fact of a reciprocal insurer or Lloyds underwriters, and  in case  such  manager  or attorney-in-fact is a corporation, including the officers of such corporation.  (35) "Parent corporation" has  the  meaning  assigned  to  it  in  the definition of subsidiary.  (36)  "Property/casualty  insurance  company" means any company having power to write any one or more of the basic kinds of insurance specified in subsection (a) of section four  thousand  one  hundred  one  of  this chapter.  (37)  "Reciprocal  insurer" means any aggregation of persons, firms or corporations or, in the alternative, New York counties,  towns,  cities, villages,  district  corporations  (as  defined  in  paragraph  three of section 2.00 of the local finance law), or school districts  and  boards of  cooperative  educational  services,  called "subscribers" in article sixty-one of this chapter, who or which under a common  name  engage  in the  business of inter-insurance or exchanging contracts of insurance on the reciprocal plan through  an  attorney-in-fact  having  authority  to obligate  the  subscribers severally, within such limits as may lawfully be specified in the subscriber's agreement, on  contracts  of  insurance made with any subscriber as a policyholder through such attorney-in-fact acting  on  behalf  of  all  other  subscribers.  Such term includes any reciprocal or inter-insurance exchange, by whatever name known, and  any reference  thereto  as  an  insurer  shall  be  deemed  to mean any such aggregation of  inter-insurers  operating  through  an  attorney-in-fact individually  and  collectively  as  an  insurance  organization for the benefit of its policyholders.  (38)  "Renewal  license"  means  a  license  which  becomes  effective immediately  following the expiration of a license previously issued and in force, and which differs from such previous license only  as  to  the date of expiration.  (39) "State" means any state of the United States, the commonwealth of Puerto Rico and the District of Columbia.  (40)   "Subsidiary"  means  an  institution  controlled,  directly  or indirectly, by another institution or by a  retirement  system.  "Parent corporation"  means an institution or a retirement system that, directly or indirectly, controls another institution. For  the  purposes  of  the definitions in this subsection:  (A)  an  institution  is  conclusively presumed to be controlled by an institution or retirement system  that,  directly  or  indirectly,  with power  to  vote,  owns,  controls or holds a majority of the outstanding voting securities of such institution;  (B) no presumption, either of control or of absence of control, arises if such ownership, control or holding of voting securities is less  than a majority but more than five percent;  (C)  absence  of  control  is  presumed  if such ownership, control or holding of voting securities is five percent or less; and  (D)  in  determining  control,  voting  securities  held  in  separate accounts  of  an  institution or retirement system shall be deemed to be owned by the institution or retirement system, but voting securities  in an  investment advisory account that are not owned by an institution but are held in an account as to which  the  institution  is  an  investment adviser   shall  not  be  deemed  to  be  controlled  or  held  by  such institution.  (41) "Superintendent" means the superintendent of  financial  services of this state.  (42)  "Surplus  to  policyholders"  means the excess of total admitted assets over the liabilities of an insurer,  which  is  the  sum  of  all capital and surplus accounts minus any impairment thereof.  (43)  "United  States". Except for the purposes of article fourteen of this chapter, when used to signify place, means only the states  of  the United  States,  the  commonwealth  of  Puerto  Rico and the District of Columbia.  (44) "United States branch" means, as the  context  may  require,  the business  unit  through  which  business is transacted within the United States by an alien insurer,  or  the  assets  and  liabilities  of  such insurer  within  the  United  States  pertaining to such business or the management powers pertaining to such business and  to  such  assets  and liabilities or any combination of these three.  (45)  "Voting  securities"  means  securities  of  any  class  or  any ownership interest having voting power for the  election  of  directors, trustees  or  management of an institution, other than securities having such power only by reason of the happening of a contingency.  (46) "Doing an insurance business" has the meaning ascribed to  it  by section one thousand one hundred one of this chapter.  (47)  "Commercial  risk  insurance"  means  insurance  not  subject to section three thousand four hundred twenty-five of this  chapter  issued or  issued  for delivery in this state, on a risk located in this state, insuring any of the following contingencies:  (A) loss of or damage to real property;  (B) loss of or damage to personal property;  (C) losses or liabilities arising out of the ownership,  operation  or use of a motor vehicle;  (D) liabilities of persons acting as officers or directors; or  (E)  other  liabilities,  including  product  liability,  for loss of, damage to, or injury to persons or property.  (48) "Product liability" means liability of the  insured  for  damages for  personal injury, death or property damage, where liability is based upon negligence, implied warranty or strict liability, arising out of  a design, inspection, testing or manufacturing defect, or any other defect in  a  product,  or  is  based  upon any failure to warn, or to properly instruct in the use of a product or for any  liability  for  any  damage arising  out  of  the handling or use of any product manufactured, sold, handled or distributed by the insured or work completed by or on  behalf of the insured.  (49)  "Professional  liability  insurance"  means  insurance  covering liability arising out of the practice of  any  profession  for  which  a license  is  required by a governmental authority of this state or, with respect to treatment of patients, arising out of the operation of a duly certified hospital.  (50) "Public entity insurance" means commercial risk insurance  issued to a public entity.  (51) "Public entity" means:  (A) the state of New York;  (B)  a  county, city, town, village or any other political subdivision or civil department or division of the state;  (C) a school district, board of cooperative  educational  services  or any   other   governmental  entity  or  combination  or  association  of governmental entities operating  a  public  school,  college,  community college or university;  (D)  a  fire district, fire company, volunteer fire department, or any other entity that contracts  with  a  municipality  or  other  political subdivision to provide fire protection;  (E) a public library, as defined in section two hundred fifty-three of the education law, authorized to operate in this state;  (F)  a public corporation, including a municipal corporation, district corporation or public benefit corporation;  (G) an  improvement  district,  special  district  or  other  district authorized by the village law, town law, county law or any other law;  (H)  a  public  corporation,  public  authority,  commission,  agency, municipal or  other  public  housing  authority,  or  project  organized pursuant to article two of the private housing finance law; or  (I) any other governmental instrumentality or unit in the state of New York.  (52) "Gap amount" means:  (A)  in  the  case of a lease of personal property, the difference, if any, between:  (i) the amount  owed  by  the  lessee,  under  the  early  termination provision  of  the  lease,  as of the date of a total loss of the leased property caused by its theft or physical damage,  or  the  amount  which would  have  been  owed  by  the  lessee  had the lessor not waived such obligations; and  (ii) the sum of: (I) any  unpaid  rental  payments  and  other  unpaid charges,  arising from the failure of the lessee to fulfill the lessee's obligations under the lease, that had accrued prior to the date  of  the loss;  and (II) the actual cash value of the personal property as of the date of the loss. If the lessee is required under the lease agreement to maintain a physical damage insurance policy  on  the  personal  property which  is  the  subject  of  the  lease agreement, and that policy is in effect on the date of the loss, then "actual cash value" shall have  the same meaning as under the physical damage insurance policy.  (B)  In the case of a loan or other credit transaction on the purchase of personal property, the difference, if any, between:  (i) the amount owed by the debtor  under  the  loan  or  other  credit transaction  as  of  the  date  of a total loss of the personal property which is the subject of the loan or other credit  transaction  agreement caused  by  its  theft or physical damage, or the amount that would have been owed by the debtor had the creditor not waived such obligation; and  (ii) the sum of: (I) any unpaid payments  and  other  unpaid  charges, arising  from the failure of the debtor to fulfill the obligations under the loan or other credit transaction agreement, that had  accrued  prior to  the date of the loss; and (II) the actual cash value of the personal property as of the date of the loss. If the debtor is required under the loan or other credit transaction agreement to maintain a physical damage insurance policy on the personal property which is the  subject  of  the loan or other credit transaction agreement, and that policy is in effect on  the  date  of the loss, then "actual cash value" shall have the same meaning as under the physical damage insurance policy.  (53) "Nonprofit property/casualty insurance company" means an  insurer organized  pursuant  to section six thousand seven hundred three of this chapter and that is subject to the provisions of article sixty-seven  of this chapter.  (54)  "Title insurance agent" shall be deemed to have the same meaning as paragraph one of subsection (y) of section two thousand  one  hundred one of this chapter.  (b)  Whenever  the  terms  "include",  "including" or terms of similar import appear in this chapter, unless the  context  requires  otherwise,  such  terms shall not be construed to imply the exclusion of any person, class or thing not specifically included.  (c)  A  reference  in this chapter to any other law or statute of this state, or of any other  jurisdiction,  means  such  law  or  statute  as amended  to  the  effective date of this chapter and, unless the context otherwise requires, as amended thereafter.