NY Ins L § 1314 (2021)
2021 New York Laws ISC - Insurance Article 13 - Assets and Deposits 1314 - Deposits; Custody, Beneficiaries, Exchanges, Inspection and Income.

§  1314.  Deposits;  custody, beneficiaries, exchanges, inspection and income. (a) (1) The superintendent shall be the  official  custodian  of all  deposits  of securities required or authorized by the provisions of this chapter, unless otherwise specifically provided by  law.  He  shall keep  the  same  in a safe place provided by the state or in custody for his account with a bank, trust company or national bank  in  this  state which  may  be  designated  by  the  depositing  insurer, subject to the approval of the superintendent.  (2) All such securities shall be held by the superintendent, in trust, without preference or priority to  any  beneficiary  entitled  to  share therein,  for  the  security  of  the depositing insurer's policyholders within the United States, its territories and possessions,  except  that securities  deposited by an alien insurer shall be held in trust for the security of the policyholders and creditors of  the  depositing  insurer within the United States, its territories and possessions.  (3)   Such   securities   may   be  registered  in  the  name  of  the superintendent as such trustee or,  at  the  option  of  the  depositing insurer, may be in bearer form.  (4) "Policyholders"  as used in this chapter in any provision relating to beneficiaries of deposits includes all  persons  having  a  legal  or equitable  right  against  the depositing insurer or the insured arising out of an insurance or annuity contract. "Depositing insurer" as used in this chapter includes any lawful successor in interest to such insurer.  (b) The depositing insurer shall not assign or otherwise transfer  all or any part of its interest in any such deposit, without the approval of the  superintendent,  and  any  such  transfer,  whether voluntary or by operation  of  law,  without  such  approval,   shall   be   void.   The superintendent  may  approve transfer of all of the depositing insurer's residuary interest in such deposit if with his approval  the  transferee assumes  all  liabilities of the transferor to the beneficiaries of such deposit.  (c) No judgment creditor or other claimant may levy upon  any  deposit or  part  thereof.  Upon  the making of an order by a court of competent jurisdiction for the liquidation, rehabilitation or conservation of  any depositing  insurer,  the  deposit  and  the  income  therefrom shall be transferred  to  the  superintendent  as  liquidator,  rehabilitator  or conservator.  (d)  All  deposits of securities held by the superintendent which were made pursuant to any prior insurance law shall be deemed to be  held  in compliance  with  the  provisions  of this chapter, for the purposes for which such deposits were originally made.  (e) The depositing insurer may from time  to  time  exchange  for  any deposited  securities  other securities eligible under the provisions of this chapter if in the opinion of the superintendent the aggregate value of such deposit will not be thereby reduced below the amount required by law.  (f) So long as the depositing insurer shall continue solvent and shall comply with the laws of this state applicable to it, the  superintendent shall  permit  it  to  collect  and  dispose  of the income on deposited securities.  (g)  (1)  No  exchange,  release  or  other  transfer   of   deposited securities,  or  any  interest  therein,  shall  be  valid  unless:  (i) countersigned by a member of  the  state  tax  commission  or  a  person designated  for  such  purpose by such commission, and (ii) requested by the  depositing  insurer.  Except  for  a  transfer  for  redemption  or refunding,  the  depositing  insurer's request must be evidenced in such manner as the superintendent requires.  (2) The department of taxation  and  finance  and  the  department  of financial  services shall each keep a book with entries showing the name of  the  insurer  for  whose  account  such  transfer  is  made  by  the superintendent, the name of the transferee unless made in blank, and the par value of the securities transferred.  (3)  Within  five days after countersigning and entering the same, the commissioner of taxation and finance shall advise by  mail  the  insurer from  whose  account  such  transfer  is made, of the kind and amount of security transferred.  (h) Every depositing insurer shall, at least once during each calendar year,  cause  such  securities  to  be  examined  by  some  person  duly authorized  in  writing.  Such  person  shall,  at  the  request  of the superintendent,  execute  a  certificate  stating  the  result  of  such examination.