NY Ins L § 8021 (2021)
2021 New York Laws ISC - Insurance Article 80 - Mutual Holding Company 8021 - Limitations on Accumulation of Surplus of Mutual Holding Companies.

§  8021.  Limitations  on  accumulation  of  surplus of mutual holding companies. (a) A mutual holding company may maintain (1) a non-insurance surplus not exceeding the aggregate capital and surplus of its insurance subsidiaries and (2) aggregate capital  and  surplus  of  its  insurance subsidiaries   not   exceeding   the  surplus  limit  of  its  insurance subsidiaries, unless otherwise approved by the superintendent.  (b) As used in this  section,  the  following  terms  shall  have  the following meanings:  (1)  "Non-insurance  surplus"  means  the mutual holding company's net worth, determined  in  accordance  with  generally  accepted  accounting principles  on  a  consolidated  basis,  excluding  the  portion thereof derived from its interest in its insurance subsidiaries.  (2) "Insurance subsidiary" means a subsidiary of  the  mutual  holding company  that is a domestic insurer, a foreign insurer, an alien insurer or  (notwithstanding  its  exemption  from  this   chapter)   a   health maintenance organization.  (3)  "Aggregate  capital  and  surplus"  of a mutual holding company's insurance subsidiaries means the sum of:  (A) for each subsidiary that is a life insurance company and is not  a subsidiary  of another life insurance company, its statutory capital and surplus;  (B) for each subsidiary that is an insurance company other than a life insurance company, a health maintenance organization or a subsidiary  of another insurance subsidiary, its statutory capital and surplus; and  (C)  for each subsidiary that is a health maintenance organization and is not a subsidiary of an insurance subsidiary, thirty-five  percent  of its net premium written in the preceding calendar year.  (4)   "Surplus   limit"   of  a  mutual  holding  company's  insurance subsidiaries means the aggregate of:  (A) for each subsidiary that is a life insurance company and is not  a subsidiary  of  another life insurance company, the greater of (i) eight hundred fifty thousand dollars,  or  (ii)  ten  percent  of  its  policy reserves  and  policy  liabilities,  or  (iii) ten percent of the policy reserves and policy liabilities of such life insurance  company  and  of all  subsidiaries of such company that are insurance companies, plus (x) the product of three and the authorized control level RBC of  such  life insurance  company as determined in accordance with section one thousand three hundred twenty-two of this chapter or corresponding provisions  of the  law  of its state of domicile, plus (y) for each subsidiary of such domestic  life  insurance  company  that   is   a   health   maintenance organization,  thirty-five  percent  of  its  net premium written in the preceding calendar year, minus (z) the asset valuation reserves of  such life  insurance company and of all subsidiaries of such company that are life insurance companies, or (iv) the  minimum  amount  of  capital  and surplus  required  by  the  law  of  another  state  in  which such life insurance company is authorized to do business,  all  as  determined  in accordance  with  accounting  practices  prescribed  or permitted by the superintendent, in the case  of  domestic  insurers,  or  the  principal regulator of any insurance subsidiary that is not a domestic insurer;  (B) for each subsidiary that is an insurance company other than a life insurance  company, a health maintenance organization or a subsidiary of another insurance subsidiary, its statutory capital and surplus; and  (C) for each subsidiary that is a health maintenance organization  and is  not  a subsidiary of an insurance subsidiary, thirty-five percent of its net premium written in the preceding calendar year;  (D) The superintendent may, for good cause  shown,  by  order,  permit such  mutual  holding  company  to  maintain  a surplus in excess of the maximum prescribed by subsection (a) of this section,  for  a  specified  period,  not  exceeding one year under any one order. The superintendent shall state in such  order  the  reasons  therefor  and  shall  cause  a statement  of  such  order  and such reasons to be published in the next annual report of the superintendent to the legislature.