2023 New York Laws › ISC - Insurance › Article 17 - Subsidiaries of Domestic Life Insurance Companies and Certain Other Entities › 1702 - Definitions.

§  1702. Definitions. As used in this article:  (a) "Subsidiary" means
subsidiaries of the types described in subsection  (b)  of  section  one
thousand seven hundred four of this article and subsidiaries acquired or
held  under  this  article,  section  one  thousand four hundred five or
section four thousand two hundred forty of this chapter, but  shall  not
include  a  subsidiary  acquired or held under section one thousand four
hundred four of this chapter or a subsidiary  acquired  or  held  by  an
insurer  authorized to make investments by subsection (c) of section one
thousand four hundred three of this chapter.
(b)  "Parent  corporation"  means  a  parent  corporation  of  a  type
described  in  subsection  (a), (b) or (c) of section one thousand seven
hundred one of this article.
(c) "Holding company operating subsidiary" means a  subsidiary  (other
than  a  separate  account subsidiary) engaged or organized to engage in
either or both  of  the  following  activities  (1)  the  ownership  and
management  of  other subsidiaries, and (2) the raising of capital (debt
or equity) that could be loaned to, or invested in,  other  subsidiaries
or  loaned  to the parent corporation, provided that any such subsidiary
may in addition  engage  in  the  ownership  and  management  of  assets
authorized as investments for the parent corporation.
(d)  "Investment subsidiary" means a subsidiary (other than a separate
account subsidiary) engaged or organized to engage  exclusively  in  the
ownership  and  management  of  assets  (other than equity securities of
subsidiaries) authorized as investments for the parent  corporation  and
of other investment subsidiaries.
(e)  "Separate account subsidiary" means a subsidiary acquired or held
under section four thousand two hundred forty of this chapter.
(f) "Enterprise risk" means  any  activity,  circumstance,  event,  or
series  of  events  involving  one  or  more  subsidiaries  of  a parent
corporation that, if not remedied promptly, is likely to have a material
adverse effect upon the financial condition or liquidity of  the  parent
corporation,   including   anything   that   would   cause   the  parent
corporation's risk-based capital to fall into company  action  level  as
set  forth  in  section  one  thousand  three hundred twenty-two of this
chapter, or that would cause  further  transaction  of  business  to  be
hazardous to the insurer's policyholders or creditors or the public.
(g)  "Group  capital calculation instructions" means the group capital
calculation instructions as adopted by the NAIC and as  amended  by  the
NAIC  from time to time in accordance with the procedures adopted by the
NAIC, except where such instructions conflict  with  the  laws  of  this
state  and  subject  to  exceptions  the  superintendent  may  take in a
regulation upon a written finding  that  the  exceptions  would  not  be
unduly burdensome on the parent corporation or subsidiary.
(h) "NAIC" means the National Association of Insurance Commissioners.
(i)  "NAIC  liquidity stress test framework" means an NAIC publication
that  includes  a  history  of  the  NAIC's  development  of  regulatory
liquidity  stress  testing, the scope criteria applicable for a specific
data year, and the liquidity  stress  test  instructions  and  reporting
templates  for  a  specific data year, such scope criteria, instructions
and reporting template being as adopted by the NAIC and  as  amended  by
the  NAIC from time to time in accordance with the procedures adopted by
the NAIC, except where such instructions conflict with the laws of  this
state  and  subject  to  exceptions  the  superintendent  may  take in a
regulation upon a written finding  that  the  exceptions  would  not  be
unduly burdensome on the parent corporation or subsidiary.
(j)  "Scope  criteria"  means the designated exposure bases along with
minimum  magnitudes  thereof  for  the  specified  data  year,  used  to

establish a preliminary list of insurers considered scoped into the NAIC
liquidity stress test framework for that data year.