NY Ins L § 7316 (2021)
2021 New York Laws ISC - Insurance Article 73 - Conversion to Different Type of Insurer 7316 - Conversion of Savings Banks Life Insurance Into a Mutual Life Insurance Company.

§  7316. Conversion of savings banks life insurance into a mutual life insurance company. (a) (1) Upon compliance with the requirements of this section, the life  insurance  business  conducted  by  all  savings  and insurance  banks  as  defined in article six-A of the banking law may be converted into and transferred to a corporation formed as set  forth  in subsection  (b)  of this section and licensed as a mutual life insurance company to do the kinds of insurance business  specified  in  paragraphs one, two and three of subsection (a) of section one thousand one hundred thirteen of this chapter. Such conversion and transfer shall be effected pursuant to a plan approved by the superintendent and the superintendent of  banks. Such plan shall be submitted by the trustees of savings banks life insurance fund to the  superintendent  and  the  superintendent  of banking  in writing and shall set forth in full the terms and conditions thereof.  (2) Prior to the submission thereof  to  the  superintendent  and  the superintendent  of  banks, such plan shall be approved by the vote of at least three-fourths of the trustees of savings banks life insurance fund and then by the vote of at least three-fourths of all  the  savings  and insurance banks at a meeting of all such banks called for the purpose of submitting  such plan to such banks for approval. Written notice of such meeting shall be given to each such bank by first class  mail  addressed to  the chairman or president of the bank at the bank's principal office not less than thirty days prior to the date of such meeting. Such notice shall state the purpose for which the meeting is  called  and  shall  be accompanied  by  a  true and complete copy of such plan. At such meeting the vote of each such bank shall be cast by the  chairman  or  president thereof or by an officer thereof designated by the chairman or president in a writing addressed to and received by the secretary of savings banks life  insurance  fund  prior to the date of such meeting. The results of the vote and the minutes of  the  meeting  shall  be  submitted  to  the superintendent and the superintendent of banks.  (3)  The  superintendent  and  the  superintendent  of  banks each may approve the plan if he finds that it conforms to the requirements of law and is fair and equitable to the holders of insurance policies issued by the life insurance departments of the savings and insurance  banks.  The plan  submitted  shall  include  a  filing  in  accordance  with section thirteen hundred  twenty-two  of  this  chapter  which  shows  that  the proposed  mutual  insurer's risk based capital level is in excess of the company action level and there is no company action  level  event.  Upon the  approval  by  the superintendent and the superintendent of banks of the plan, the trustees of savings banks life insurance fund shall form a corporation as set forth in subsection (b) of this section to which  the life insurance business conducted by all the savings and insurance banks shall be transferred.  (b)(1)  To  form  the  corporation described in subsection (a) of this section, the trustees of savings banks life insurance fund shall  submit to  the  superintendent, in writing, a proposed declaration, charter and by-laws for such corporation. Such submission to  establish  a  licensed corporation  shall  conform  to the requirements of section one thousand two hundred one of this chapter.  (2) If the superintendent finds that the submission complies with  the requirements of section one thousand two hundred one of this chapter, he shall   file  the  declaration,  charter  and  by-laws  in  his  office. Coincident with such filing, the corporation that is the subject of such declaration, charter and by-laws shall be  licensed  as  a  mutual  life insurance  company  to  do  the kinds of insurance business specified in paragraphs one, two and three of subsection (a) of section one  thousand one  hundred  thirteen  of this chapter and shall have all the powers of  such a corporation under this chapter. If requested by the  corporation, the  superintendent  shall issue a certified copy of the declaration and charter and a certificate of incorporation executed by him in  the  name or the people of the state.  (3)  The  corporation  formed  pursuant  to  the  provisions  of  this subsection shall be liable   for, and  shall  hold  savings  banks  life insurance  fund, its trustees, officers and employees harmless from, all obligations of and claims against savings banks life insurance fund, its trustees, officers or employees related to or arising out of the  powers or  duties  of  savings banks life insurance fund under article six-A of the banking law. Such corporation shall be liable for,  and  shall  hold each  savings  and  life  insurance  bank,  its  directors, officers and employees harmless from, all obligations  of  and  claims  against  such savings  and  life insurance bank, its directors, officers and employees related to or arising out of each and every insurance  policy  and  each and  every  annuity  contract issued by the life insurance department of such bank.