NY Ins L § 7402 (2021)
2021 New York Laws ISC - Insurance Article 74 - Rehabilitation, Liquidation, Conservation and Dissolution of Insurers 7402 - Grounds for Rehabilitation of Domestic Insurer.

§   7402.   Grounds   for  rehabilitation  of  domestic  insurer.  The superintendent may apply under this article for an order  directing  him to rehabilitate a domestic insurer which:  (a)  Is  insolvent  within  the  meaning of section one thousand three hundred nine of this chapter.  (b) Has refused to submit its books, papers, accounts  or  affairs  to the reasonable inspection of the superintendent, his deputy or examiner.  (c) Has failed or refused to comply, within the time designated by the superintendent, with an order of the superintendent, pursuant to law, to make   good  an  impairment  of  its  capital,  or  minimum  surplus  to policyholders, if a stock insurer, or  of  its  minimum  surplus,  if  a mutual   insurer,   a  reciprocal  insurer,  Lloyds  underwriters  or  a co-operative fire insurance corporation.  (d)  Has  transferred  or  attempted  to  transfer,  by  contract   of reinsurance or otherwise, substantially its entire property or business, or  entered  into  any transaction which merges substantially its entire property or  business  into  the  property  or  business  of  any  other corporation,  association,  society,  order, firm or individual, without having first obtained the approval of the superintendent.  (e) Is found, after examination, to be  in  such  condition  that  its further  transaction of business will be hazardous to its policyholders, creditors, or the public.  (f) Has wilfully violated its charter or any law of the state.  (g) Has an officer who refused to be examined under  oath,  concerning its affairs.  (h) If organized under article five-a, six, seven, eight, ten or ten-b of  the  former  insurance  law constituting chapter twenty-eight of the consolidated laws of nineteen hundred nine, or if organized as a  mutual or  non-stock  insurer  under  article  nine-a,  nine-c,  ten, eleven-a, eleven-b, twelve or fourteen of the former  insurance  law  constituting chapter  twenty-eight  of  the  consolidated  laws in effect immediately before  the  effective  date  of  this  chapter  or  article  forty-one, forty-two,  forty-four,  forty-five,  sixty-one  or  sixty-six  of  this chapter, including amendments thereto in  force  at  the  time  of  such organization,  is found to be in such condition, after examination, that it could not meet the requirements for incorporation  and  authorization specified  in  such  articles except with respect to having any required initial surplus.  (i) Has ceased to do the business of insurance for  a  period  of  one year  as  provided in subsection (b) of section one thousand two hundred three of this chapter.  (j) Has commenced voluntary liquidation or dissolution, or attempts to commence or prosecute any action or proceeding to liquidate its business or affairs, or to dissolve its corporate  charter,  or  to  procure  the appointment of a receiver, trustee, custodian, or sequestrator under any law except this article.  (k)  Has  been  the subject of an application for the appointment of a receiver, trustee, custodian or  sequestrator  of  the  insurer  or  its property,  or  if  a  receiver,  trustee,  custodian, or sequestrator is appointed by a federal court or if such appointment is imminent.  (l) Has  consented  to  such  an  order  through  a  majority  of  its directors, shareholders, or members.  (m)  Has  not  organized  or completed its organization and obtained a license or certificate authorizing  it  to  commence  the  doing  of  an insurance  business  within one year from the date of its incorporation, as provided in subsection (a) of section one thousand two hundred  three of this chapter.  (n)  Has  failed  or refused to take such steps as may be necessary to remove from office any officer or director whom the  superintendent  has found,  after  notice to and hearing of such insurer and of such officer or director, to be a dishonest or untrustworthy person.  (o)  Has  an  occurrence  of  an  authorized  control level event or a mandatory control level event pursuant  to  subsection  (f)  or  (g)  of section  one  thousand three hundred twenty-two or subsection (f) or (g) of section one thousand three hundred twenty-four of this chapter.