2023 New York Laws › ISC - Insurance › Article 80 - Mutual Holding Company › 8021 - Limitations on Accumulation of Surplus of Mutual Holding Companies.

§  8021.  Limitations  on  accumulation  of  surplus of mutual holding
companies. (a) A mutual holding company may maintain (1) a non-insurance
surplus not exceeding the aggregate capital and surplus of its insurance
subsidiaries and (2) aggregate capital  and  surplus  of  its  insurance
subsidiaries   not   exceeding   the  surplus  limit  of  its  insurance
subsidiaries, unless otherwise approved by the superintendent.
(b) As used in this  section,  the  following  terms  shall  have  the
following meanings:
(1)  "Non-insurance  surplus"  means  the mutual holding company's net
worth, determined  in  accordance  with  generally  accepted  accounting
principles  on  a  consolidated  basis,  excluding  the  portion thereof
derived from its interest in its insurance subsidiaries.
(2) "Insurance subsidiary" means a subsidiary of  the  mutual  holding
company  that is a domestic insurer, a foreign insurer, an alien insurer
or  (notwithstanding  its  exemption  from  this   chapter)   a   health
maintenance organization.
(3)  "Aggregate  capital  and  surplus"  of a mutual holding company's
insurance subsidiaries means the sum of:
(A) for each subsidiary that is a life insurance company and is not  a
subsidiary  of another life insurance company, its statutory capital and
surplus;
(B) for each subsidiary that is an insurance company other than a life
insurance company, a health maintenance organization or a subsidiary  of
another insurance subsidiary, its statutory capital and surplus; and
(C)  for each subsidiary that is a health maintenance organization and
is not a subsidiary of an insurance subsidiary, thirty-five  percent  of
its net premium written in the preceding calendar year.
(4)   "Surplus   limit"   of  a  mutual  holding  company's  insurance
subsidiaries means the aggregate of:
(A) for each subsidiary that is a life insurance company and is not  a
subsidiary  of  another life insurance company, the greater of (i) eight
hundred fifty thousand dollars,  or  (ii)  ten  percent  of  its  policy
reserves  and  policy  liabilities,  or  (iii) ten percent of the policy
reserves and policy liabilities of such life insurance  company  and  of
all  subsidiaries of such company that are insurance companies, plus (x)
the product of three and the authorized control level RBC of  such  life
insurance  company as determined in accordance with section one thousand
three hundred twenty-two of this chapter or corresponding provisions  of
the  law  of its state of domicile, plus (y) for each subsidiary of such
domestic  life  insurance  company  that   is   a   health   maintenance
organization,  thirty-five  percent  of  its  net premium written in the
preceding calendar year, minus (z) the asset valuation reserves of  such
life  insurance company and of all subsidiaries of such company that are
life insurance companies, or (iv) the  minimum  amount  of  capital  and
surplus  required  by  the  law  of  another  state  in  which such life
insurance company is authorized to do business,  all  as  determined  in
accordance  with  accounting  practices  prescribed  or permitted by the
superintendent, in the case  of  domestic  insurers,  or  the  principal
regulator of any insurance subsidiary that is not a domestic insurer;
(B) for each subsidiary that is an insurance company other than a life
insurance  company, a health maintenance organization or a subsidiary of
another insurance subsidiary, its statutory capital and surplus; and
(C) for each subsidiary that is a health maintenance organization  and
is  not  a subsidiary of an insurance subsidiary, thirty-five percent of
its net premium written in the preceding calendar year;
(D) The superintendent may, for good cause  shown,  by  order,  permit
such  mutual  holding  company  to  maintain  a surplus in excess of the
maximum prescribed by subsection (a) of this section,  for  a  specified

period,  not  exceeding one year under any one order. The superintendent
shall state in such  order  the  reasons  therefor  and  shall  cause  a
statement  of  such  order  and such reasons to be published in the next
annual report of the superintendent to the legislature.