NY Ins L § 1218 (2021)
2021 New York Laws ISC - Insurance Article 12 - Organization and Corporate Procedure 1218 - Regulation of Stock Ownership, Interlocking Directors and Common Management.

§  1218.  Regulation  of  stock  ownership, interlocking directors and common management. (a) Any domestic insurer and  any  foreign  or  alien insurer authorized to do business in this state may retain, invest in or acquire  all or any shares, or, by contract of reinsurance or otherwise, acquire the whole or a substantial part of  the  assets,  of  any  other insurer, or have a common management with any other insurer, unless such retention,  investment, acquisition or common management is inconsistent with any other provision of this chapter or unless the effect thereof:  (1) in the case of a domestic or alien insurer, may  be  substantially to  lessen  competition  in  any  line  of  commerce in insurance in any section of the country or to tend to create a monopoly therein, or  (2) in the case of a foreign insurer, may be substantially  to  lessen competition  in  any  line  of commerce in insurance in this state or to tend to create a monopoly therein.  (b) No person shall serve as a director of two or more insurers  under this  chapter which are or during the next preceding two years have been engaged in writing directly the same  lines  of  commerce  in  insurance unless  such  interlocking  directorate  is  not  used  as  a  means  to substantially lessen competition generally in the business of  insurance or  create a monopoly therein, but any person otherwise qualified may be a director of  two  or  more  insurers  having  a  common  ownership  or management  which  is  not  otherwise  proscribed  if  such interlocking directorate  is  not  used  as  a  means  of   substantially   lessening competition  generally  in  the  business  of insurance or of creating a monopoly therein.  (c) (1) Whenever the superintendent believes  this  section  is  being violated,  he  shall serve upon the insurer or insurers and the director or directors, as the case may be, a notice  pursuant  to  section  three hundred  three of this chapter of a hearing before the superintendent to be held not less than thirty days after such service and requiring  such insurer  or insurers and such director or directors, as the case may be, to show cause why an order should not  be  made  by  the  superintendent directing  such  insurer  or insurers and such director or directors, as the case may be, to cease and desist from such violation.  (2) If, upon such hearing, the superintendent  finds  a  violation  of this  section  he  shall  issue  and  cause  to be served upon each such insurer or insurers and such director or directors, as the case may  be, an order reciting the facts found by him, and setting forth the respects in  which  there  has  been  a  violation, and directing such insurer or insurers and such director or directors, as the case may  be,  to  cease and desist from such violation and he may in such order direct each such insurer  to  divest itself of the shares or assets held or to rid itself of the directors serving contrary to the provisions of subsection (a) or (b) of this section.  (3) A violation of any such cease and desist order shall,  subject  to judicial review, be deemed a violation of this chapter.  (4)  The  attorney  general  may  maintain  a  proceeding upon his own information to prevent and restrain violations of this section  and  the judgment  therein  against any defendant may grant affirmative relief to the same extent as may the superintendent by an order issued pursuant to this section.  (5) Any person, firm, corporation or association shall be entitled  to maintain  a  proceeding  to  obtain  injunctive  relief  against loss or damages by a violation of this section at whatever time  and  under  the same conditions and principles as when injunctive relief against conduct that  will  cause loss or damage is granted by the courts under the laws of this state governing such  proceedings.    In  such  proceeding,  the  plaintiff  also may recover the damages sustained by him and the cost of suit, including a reasonable attorney's fee.  (d)  Nothing  contained  in  this  section shall be deemed to alter or abridge any rights or remedies otherwise available to  any  person,  the superintendent and the attorney general under any law of this state.