reglab/statecodes huggingface dataset:
2023 New York Laws › ISC - Insurance › Article 74 - Rehabilitation, Liquidation, Conservation and Dissolution of Insurers › 7413 - Priority of Preferred Claims, Special Deposit Claims and Secured Claims.

§  7413.  Priority  of  preferred  claims,  special deposit claims and
secured claims. (a) In  a  delinquency  proceeding  against  an  insurer
domiciled  in  this state, claims owing to residents of ancillary states
shall be preferred claims if like claims are preferred under the laws of
this state. All such claims whether owing to residents or  non-residents
shall  be given equal priority of payment from general assets regardless
of where such assets are located.
(b) In a delinquency proceeding against  an  insurer  domiciled  in  a
reciprocal  state,  claims  owing  to  residents  of this state shall be
preferred if like claims are preferred by the laws of that state.
(c) The owners of special deposit claims against an insurer for  which
a  receiver  is  appointed  in  this  or  any other state shall be given
priority against their several special deposits in accordance  with  the
provisions  of  the  statutes  governing the creation and maintenance of
such deposits. If there is a deficiency in any such deposit so that  the
claims secured thereby are not fully discharged therefrom, the claimants
may  share  in  the  general  assets, but such sharing shall be deferred
until general  creditors,  and  also  claimants  against  other  special
deposits  who  have  received  smaller percentages from their respective
special deposits, have been paid percentages of their  claims  equal  to
the percentage paid from the special deposit.
(d)  The  owner  of  a  secured  claim  against an insurer for which a
receiver has been appointed in this or any other state may surrender his
security and file his claim as a general creditor, or the claim  may  be
discharged  by  resort to the security, in which case the deficiency, if
any, shall be treated as a claim  against  the  general  assets  of  the
insurer  on  the  same  basis  as  claims of unsecured creditors. If the
amount of the deficiency has been adjudicated in  ancillary  proceedings
as  provided  in  this  act, or if it has been adjudicated by a court of
competent jurisdiction in proceedings in which the domiciliary  receiver
has  had  notice  and  opportunity  to  be  heard,  such amount shall be
conclusive; otherwise the amount shall be determined in the  delinquency
proceeding in the domiciliary state.
2023 New York Laws › ISC - Insurance › Article 74 - Rehabilitation, Liquidation, Conservation and Dissolution of Insurers › 7414 - Attachment and Garnishment of Assets.

§  7414.  Attachment and garnishment of assets. During the pendency of
  delinquency proceedings in this or any reciprocal  state  no  action  or
  proceeding  in  the  nature  of an attachment, garnishment, or execution
  shall be commenced or maintained in the courts of this state against the
  delinquent insurer or its assets. Any lien obtained by any  such  action
  or  proceeding  within four months prior to the commencement of any such
  delinquency proceeding or at  any  time  thereafter  shall  be  void  as
  against any rights arising in such delinquency proceeding.
2023 New York Laws › ISC - Insurance › Article 74 - Rehabilitation, Liquidation, Conservation and Dissolution of Insurers › 7415 - Uniformity of Interpretation.

§ 7415. Uniformity of interpretation. The uniform insurers liquidation
  act shall be interpreted and construed to effectuate its general purpose
  to  make  uniform  the  law of those states that enact it. To the extent
  that its provisions, when applicable, conflict with other provisions  of
  this chapter, the provisions of this act shall control.
2023 New York Laws › ISC - Insurance › Article 74 - Rehabilitation, Liquidation, Conservation and Dissolution of Insurers › 7416 - Grounds for Dissolution of Domestic Insurer.

§   7416.   Grounds   for   dissolution   of   domestic  insurer.  The
  superintendent may apply under this article for an order dissolving  the
  corporate  existence of a domestic insurer: (i) upon his application for
  an order of liquidation of its business, or at any time after such order
  has been granted; or (ii) upon the grounds specified in  subsection  (m)
  of  section  seven thousand four hundred two of this article, regardless
  of whether an order of liquidation is sought or has been obtained.
2023 New York Laws › ISC - Insurance › Article 74 - Rehabilitation, Liquidation, Conservation and Dissolution of Insurers › 7417 - Commencement of a Proceeding.

§  7417.  Commencement of a proceeding. The superintendent represented
  by the attorney general shall commence any proceeding under this article
  by an application to the supreme court,  in  the  judicial  district  in
  which  the  principal  office  of  the  insurer is located, for an order
  directing such insurer to show cause why the superintendent  should  not
  have the requested relief. On the return of such order, and after a full
  hearing, which shall be held without delay, such court shall either deny
  the  application  or  grant  it  together  with such other relief as the
  nature of the  case  and  the  interests  of  policyholders,  creditors,
  shareholders, members, or the public may require.
2023 New York Laws › ISC - Insurance › Article 74 - Rehabilitation, Liquidation, Conservation and Dissolution of Insurers › 7418 - Service of Order to Show Cause.

§  7418.  Service  of order to show cause. (a) The order to show cause
and the papers upon which it is granted shall be served upon the insurer
named therein by delivering true copies to, and leaving them with:
(1) If a domestic  corporation:  its  president  or  other  head,  the
secretary or clerk to the corporation, the cashier, the treasurer or any
director or managing agent.
(2)  If a foreign or alien corporation: its president, vice-president,
treasurer or assistant treasurer, secretary or assistant  secretary,  or
any  director  or  managing  agent  or,  if  the corporation has no such
officers within this state,  to  the  officer  performing  corresponding
functions.
(3) If a voluntary, unincorporated or a joint stock association, order
or  society: the president, vice-president, treasurer, director, trustee
or other officer or a member with managerial powers.
(4)  If  a  reciprocal  insurer  or  Lloyds  underwriters:  the   duly
designated attorney-in-fact.
(b)  When  it  is  satisfactorily  proved by the verified report of an
examiner to the superintendent or  by  affidavit  of  any  other  person
familiar  with  the facts that the persons upon whom service is required
to be made have departed from the state  or  keep  themselves  concealed
therein  or  have resigned from their offices within forty days prior to
the application for an order to show cause under the provision  of  this
section,  or  that service cannot be made immediately by the exercise of
reasonable diligence, such order may provide for service in such  manner
as the court directs.
2023 New York Laws › ISC - Insurance › Article 74 - Rehabilitation, Liquidation, Conservation and Dissolution of Insurers › 7419 - Injunctions.

§ 7419. Injunctions. (a) Upon application by the superintendent for an
order  to  show  cause under this article or at any time thereafter, the
court in which such order is made, or any justice  thereof  may  without
notice  issue  an  injunction  restraining  the  insurer,  its officers,
directors, shareholders, members, trustees, agents, servants, employees,
policyholders, attorneys, managers,  and  all  other  persons  from  the
transaction  of its business or the waste or disposition of its property
until further order of the court.
(b) Such court or justice may at any time during  a  proceeding  under
this  article  issue  such  other  injunctions  or  orders  as  it deems
necessary  to  prevent  interference  with  the  superintendent  or  the
proceeding,  or  waste of the assets of the insurer, or the commencement
or prosecution of any actions, the obtaining of preferences,  judgments,
attachments  or  other  liens,  or  the  making  of any levy against the
insurer, its assets or any part thereof.
2023 New York Laws › ISC - Insurance › Article 74 - Rehabilitation, Liquidation, Conservation and Dissolution of Insurers › 7420 - Annual Report.

§  7420.  Annual  report.  The  superintendent  shall  transmit to the
  legislature in his annual report the names  of  all  insurers  proceeded
  against  under  this  article together with such facts as shall acquaint
  the policyholders, creditors, shareholders,  and  the  public  with  all
  proceedings.  To that end the special deputy superintendent in charge of
  any such insurer shall file annually with the superintendent a report of
  the affairs of such insurer.
2023 New York Laws › ISC - Insurance › Article 74 - Rehabilitation, Liquidation, Conservation and Dissolution of Insurers › 7421 - Removal of Proceedings.

§  7421.  Removal  of  proceedings.  Any  time after commencement of a
  proceeding under this article, the superintendent may apply ex parte  to
  the  court or any justice thereof for an order changing the venue of and
  removing the proceeding to Albany county, or, in the discretion  of  the
  superintendent, to any other county of this state in which he deems that
  such proceeding may be most economically and efficiently conducted. Upon
  the  filing  of  any  such application, the court or any justice thereof
  shall direct the clerk of the county wherein such proceeding is  pending
  to transmit all papers filed therein with such clerk to the clerk of the
  county  to  which  such  proceeding  is  removed.  The  proceeding shall
  thereafter be conducted in such other  county  as  though  it  had  been
  commenced in such county.
2023 New York Laws › ISC - Insurance › Article 74 - Rehabilitation, Liquidation, Conservation and Dissolution of Insurers › 7422 - Appointment of Deputies; Employment of Assistants.

§ 7422. Appointment of deputies; employment of assistants. (a) For the
purposes  of this article the superintendent shall have power to appoint
special deputy, and assistant special  deputy,  superintendents  as  his
agents,  and to employ such counsel, clerks and assistants as may by him
be deemed necessary and to give them such powers to  assist  him  as  he
considers wise.
(b)  The  compensation  of  such  special and assistant special deputy
superintendents, counsel, clerks and assistants,  and  all  expenses  of
conducting  any  proceeding  under  this  article  shall be fixed by the
superintendent, subject to the approval of the court, and shall be  paid
out of the funds or assets of such insurer.
2023 New York Laws › ISC - Insurance › Article 74 - Rehabilitation, Liquidation, Conservation and Dissolution of Insurers › 7423 - Exemption From Filing Fees.

§  7423.  Exemption  from filing fees. The superintendent shall not be
  required to pay any fee to any county clerk, register  or  other  public
  officer  in  this  state  for filing, recording, issuing a transcript or
  certificate, or authenticating any paper or instrument pertaining to the
  exercise by the superintendent of any of the powers or duties  conferred
  upon  him  by any of the provisions of this article, whether or not such
  paper or instrument be executed by the superintendent or his deputies or
  attorneys of record  and  whether  or  not  it  is  connected  with  the
  commencement  of  an  action  or  judicial  proceeding by or against the
  superintendent, or with the subsequent conduct  of  such  an  action  or
  proceeding.
2023 New York Laws › ISC - Insurance › Article 74 - Rehabilitation, Liquidation, Conservation and Dissolution of Insurers › 7424 - Deposit of Monies Collected; Preference.

§  7424.  Deposit of monies collected; preference. Monies collected by
  the superintendent in a proceeding under this article shall be deposited
  in one or  more  state  or  national  banks,  savings  banks,  or  trust
  companies.  In  the  case  of  insolvency  or  voluntary  or involuntary
  liquidation of any such depositary organized and  supervised  under  the
  laws  of  this  state,  such  deposits  shall be entitled to priority of
  payment on an equality with any other priority given by the banking  law
  of  this  state.  The  superintendent may in his discretion deposit such
  monies or any part thereof in a national bank  or  trust  company  as  a
  trust fund.
2023 New York Laws › ISC - Insurance › Article 74 - Rehabilitation, Liquidation, Conservation and Dissolution of Insurers › 7425 - Voidable Transfers.

§ 7425. Voidable transfers. (a) Any transfer of, or lien created upon,
the property of an insurer within twelve months prior to the granting of
an  order  to show cause under this article with the intent of giving to
any creditor or enabling him to obtain a greater percentage of his  debt
than  any other creditor of the same class and which is accepted by such
creditor having reasonable cause to believe that such a preference  will
occur, shall be voidable.
(b)  Every  director,  officer, employee, shareholder, member or other
person acting on behalf of such insurer who shall be  concerned  in  any
such  prohibited  act and every person receiving thereby any property of
such insurer or the benefit thereof shall be personally liable  therefor
and shall be bound to account to the superintendent.
(c) The superintendent, as liquidator, rehabilitator or conservator in
any  proceeding  under  this article, may avoid any transfer of, or lien
upon, the property of an insurer  which  any  creditor,  shareholder  or
member  of  such insurer might have avoided and may recover the property
transferred or its value from the transferee unless he was a  bona  fide
holder  for  value prior to the date of the granting of an order to show
cause under this article. Such property or its value  may  be  recovered
from anyone who has received it except a bona fide holder for value.
(d)  Notwithstanding the provisions of subsection (a) of this section,
a commutation of a reinsurance agreement, approved by the superintendent
pursuant to section  one  thousand  three  hundred  twenty-one  of  this
chapter, shall not be voidable as a preference.
2023 New York Laws › ISC - Insurance › Article 74 - Rehabilitation, Liquidation, Conservation and Dissolution of Insurers › 7427 - Offsets.

§  7427.  Offsets.  (a) In all cases of mutual debts or mutual credits
between the insurer and another person in connection with any action  or
proceeding  under  this article, such credits and debts shall be set off
and the balance only shall be allowed or paid,  except  as  provided  in
subsection (b) hereof.
(b)  No  offset shall be allowed in favor of any such person, however,
where:
(1) the obligation of the insurer to such person would not at the date
of the entry of any liquidation order,  or  otherwise,  as  provided  in
section seven thousand four hundred five of this article, entitle him to
share as a claimant in the assets of such insurer, or
(2)  the  obligation of the insurer to such person was purchased by or
transferred to such person with a view of its being used as  an  offset,
or
(3)  the  obligation  of  such  person  is to pay an assessment levied
against the members of a mutual insurer or  to  pay  a  balance  upon  a
subscription to the shares of a stock insurance corporation.
2023 New York Laws › ISC - Insurance › Article 74 - Rehabilitation, Liquidation, Conservation and Dissolution of Insurers › 7428 - Disposition of Assets and Compromise of Claims.

§  7428.  Disposition  of  assets  and  compromise  of claims. (a) The
superintendent may, subject to the approval of the court:
(1) sell or otherwise dispose of all or  any  part  of  the  real  and
personal  property  of  an  insurer  against  whom a proceeding has been
brought under this article, and
(2) sell or compound all doubtful or  uncollectible  debts  or  claims
owed  by  or  to  such insurer including claims based upon an assessment
levied against a member of a mutual insurer.
(b) If the amount of any such real or personal property owned  by,  or
debt  or  claim  owed by or to, such insurer does not exceed twenty-five
thousand dollars, then the superintendent may sell or dispose of all  or
any part of the real or personal property, or compromise or compound the
debt  or  claim,  upon such terms as the superintendent may deem for the
best interests of such insurer without obtaining  the  approval  of  the
court.
(c)  The  superintendent  may,  subject  to the approval of the court,
sell, or agree to sell, or offer to sell, any assets of such an  insurer
to  such of its creditors who may desire to participate in the purchase,
to be paid for in whole or in part out  of  dividends  payable  to  such
creditors.
(d)  Upon  application  of the superintendent, the court may designate
representatives to act for  such  creditors  in  the  purchase,  holding
and/or management of such assets, and the superintendent may, subject to
the  approval of the court, advance the expenses of such representatives
against the security of the claims of such creditors.
2023 New York Laws › ISC - Insurance › Article 74 - Rehabilitation, Liquidation, Conservation and Dissolution of Insurers › 7429 - Borrowing on the Pledge of Assets.

§  7429.  Borrowing  on  the  pledge  of  assets.  To  facilitate  the
  rehabilitation, liquidation, conservation or dissolution of  an  insurer
  pursuant to this article the superintendent may, subject to the approval
  of  the court, borrow money and issue evidences of indebtedness therefor
  and secure repayment by a security interest  in  any  or  all  property,
  real, personal or mixed of such insurer.  Subject to court approval, the
  superintendent  may  take  all  other  action  necessary  and  proper to
  consummate  such  loans   and   provide   for   their   repayment.   The
  superintendent  shall  be  under  no  obligation  personally  or  in his
  capacity as superintendent to repay  any  loan  made  pursuant  to  this
  section.
2023 New York Laws › ISC - Insurance › Article 74 - Rehabilitation, Liquidation, Conservation and Dissolution of Insurers › 7431 - Determination of Liability of Members for Other Indebtedness.

§  7431. Determination of liability of members for other indebtedness.
(a) If it shall appear that a member of a  domestic  mutual  insurer  is
indebted  to  such  insurer, apart from his liability to assessment, the
court may, upon the application of  the  superintendent,  in  any  order
under  section  seven  thousand  four  hundred  thirty  of  this article
directing such member to show cause why he should not be held liable  to
pay  an  assessment, likewise direct him to show cause why he should not
be held liable to pay such indebtedness.
(b) The liability of  such  member  for  such  indebtedness  shall  be
determined  in  the  same manner, and at the same time, as his liability
for such assessment is  determined,  and  the  superintendent  may  have
judgment therefor, without any additional costs.
2023 New York Laws › ISC - Insurance › Article 74 - Rehabilitation, Liquidation, Conservation and Dissolution of Insurers › 7432 - Adjudication of Insolvency of Insurer; Time to File Claims.

§  7432.  Adjudication  of insolvency of insurer; time to file claims.
(a) If upon the granting of an order of liquidation pursuant to  section
seven  thousand  four  hundred  four  of  this  article  or  at any time
thereafter during such liquidation proceeding, such insurer shall not be
clearly solvent, the court shall, after such notice and  hearing  as  it
deems proper, make an order declaring such insurer to be insolvent.
(b) Where a liquidation, rehabilitation or conservation order has been
entered  in  a  proceeding  against  an  insurer under this article, all
persons who may have claims against such insurer shall present the  same
to  the liquidator, rehabilitator or conservator at a place specified by
him within four months from the date of the entry of such order, or,  if
the  superintendent  shall  certify  that  it  is necessary, within such
longer time as the  court  shall  prescribe.  The  superintendent  shall
notify all persons who may have claims against such insurer as disclosed
by  its books and records, to present the same to him within the time as
fixed. The last day for the filing of proofs of claim shall be specified
in the notice. Such notice shall be given in a manner determined by  the
court.
(c)  Proofs  of  claim  may be filed subsequent to the date specified,
but, no such claim shall share in the distribution of the  assets  until
all  allowed  claims,  proofs  of which were filed before such specified
date, have been paid in full with interest.
2023 New York Laws › ISC - Insurance › Article 74 - Rehabilitation, Liquidation, Conservation and Dissolution of Insurers › 7436 - Claims-Made Policies; Special Requirements.

§ 7436. Claims-made policies; special requirements. (a) Where a policy
has  been  issued  on a claims-made basis by an insurer against which an
order of liquidation, rehabilitation or conservation  has  been  entered
pursuant  to  this  article,  the  superintendent  shall  provide, at an
appropriate additional premium by the insured and  consistent  with  the
terms  of  such policy, for the issuance of coverage for claims based on
occurences prior to the termination of the  policy  which  are  reported
after the termination of the policy, in the event that the insured seeks
to purchase such coverage in accordance with the terms of such policy.
(b)  If  the  order  of liquidation, rehabilitation or conservation is
entered against an insurer which has issued medical malpractice policies
on a claims-made basis, then notwithstanding the entry  of  such  order,
the  superintendent  shall  comply with the requirements for claims-made
policies as set forth in subsections (b), (c) and (d) of  section  three
thousand  four  hundred  thirty-six  of this chapter and paragraphs two,
three and four of subsection (f) of section five thousand  five  hundred
four of this chapter.
(c)  In  the  event  that  an  insured,  who has been issued a medical
malpractice policy on a claim-made basis by an insurer against which  an
order  of liquidation has been entered pursuant to this article, chooses
to purchase coverage from a successor insurer, the superintendent  shall
expedite  the  transfer  of  coverage  that has been accrued, for claims
based on occurrences prior to the termination of the  policy  which  are
reported  after  the termination of the policy, to the successor insurer
of each insured, in accordance  with  the  requirement  for  claims-made
policies  as  set forth in subsections (b), (c) and (d) of section three
thousand four hundred thirty-six and paragraphs two, three and  four  of
subsection  (f)  of  section  five  thousand  five  hundred four of this
chapter.
2023 New York Laws › ISC - Insurance › Article 75 - Life Insurance Guaranty Fund › 7501 - Purpose of Article.

§ 7501. Purpose of article. The purpose of this article is to continue
  the  life  insurance guaranty fund, a fund arising from assessments upon
  domestic life insurance companies to be used for the  promotion  of  the
  stability  of  such  companies  and the performance of their contractual
  obligations. In the judgment of the legislature, the  foregoing  objects
  and  purposes are not capable of accomplishment by a corporation created
  under general laws, so the continuation of the  non-profit  corporation,
  "The Life Insurance Guaranty Corporation", is provided by this article.
2023 New York Laws › ISC - Insurance › Article 75 - Life Insurance Guaranty Fund › 7502 - Definitions.

§ 7502. Definitions. In this article:
(a) "Board"  means  the  board  of  directors  of  The  Life Insurance
Guaranty Corporation.
(b) "Assessment" means a payment made by a company into  the  guaranty
fund.
(c) "Contributor" means a company paying an assessment.
(d) "Corporation" means "The Life Insurance Guaranty Corporation."
(e) "Fund" means the guaranty fund provided by this article.
(f) "Member  company" means any domestic life insurance company having
a representative serving as a director upon the board  of  directors  of
the corporation.
(g) "Policies"  means  insurance  policies;  "contracts" means annuity
contracts; both terms  include  policies  or  contracts  of  reinsurance
issued by a member company.
2023 New York Laws › ISC - Insurance › Article 75 - Life Insurance Guaranty Fund › 7504 - The Guaranty Fund.

§  7504.  The  guaranty  fund.  (a)  The  corporation  shall provide a
guaranty fund from which all corporate administrative costs may be  paid
as  well as such payments and advances as may be made in connection with
any assumption, reinsurance or guaranty agreement. Such  fund  shall  be
raised  by  assessments  which  may  be  made  from  time to time by the
corporation upon all member companies in proportion  to  their  admitted
assets  as shown by their annual statements required by this chapter for
the year next preceding the date of such assessment.  The  net  realized
gains  and  income  from  investments  of  the fund shall belong, and be
refunded, to the contributors in proportion to the  amounts  contributed
by  them.  The  corporation  may  provide  by  resolution  or by-law the
necessary procedure for making assessments, the payment thereof, and the
refund of any net realized gains and  income  from  investments  of  the
fund.
(b)  The amount of the fund shall be kept at such a sum as will enable
the corporation to meet its immediate obligations and liabilities.
(c) Upon payment of assessments the corporation  shall  issue  to  the
contributors   certificates  showing  the  dates  and  amounts  of  such
payments,  and  any  other  matters  deemed  proper.   All   outstanding
certificates  shall  be  of  equal  dignity and priority irrespective of
amounts or dates of issue. Such certificates may be  carried  by  member
companies   as   admitted   assets  to  the  extent  authorized  by  the
superintendent.
(d) Whenever the amount of the fund exceeds the immediate requirements
of the  corporation,  with  the  approval  of  the  superintendent,  the
corporation  may  distribute  such excess by retirement of the aforesaid
certificates previously issued or any part  thereof.  Such  distribution
shall  be  made  pro  rata  upon  the basis of outstanding certificates,
except that by unanimous consent of  all  the  directors  and  with  the
approval  of  the  superintendent  any other method of retirement of the
certificates may be adopted.
(e) Upon dissolution of the fund by the  repeal  of  this  article  or
otherwise,  the fund shall be distributed in the manner provided for the
repayment or retirement of certificates. If the amount of  the  fund  at
the time of dissolution exceeds the outstanding certificates, the excess
shall  be  paid  in  such  equitable  manner as shall be approved by the
superintendent.
(f) The aggregate of the outstanding certificates  shall  at  no  time
exceed fifty million dollars.
2023 New York Laws › ISC - Insurance › Article 75 - Life Insurance Guaranty Fund › 7505 - Taxes.

§  7505. Taxes. (a) The corporation shall be exempt from all taxes and
fees imposed by this state or by  any  county,  municipality,  or  local
authority  or  subdivision,  except  that  real  property  owned  by the
corporation shall be subject to county, municipal or local authority  or
subdivision  taxation  to  the  same  extent, according to its value, as
other similar real property.
(b) Any  company  whose  policies  have  been  assumed,  reinsured  or
guaranteed by the corporation shall remain liable for the taxes required
by  article  thirty-three  of the tax law, and shall remain liable as to
taxes accrued before January first, nineteen hundred seventy-four, which
were required by section one hundred eighty-seven of the tax law  as  in
effect  before  January  first,  nineteen  hundred  seventy-four, on all
premiums received on policies issued by it, but payment  of  such  taxes
shall  be  suspended.    Payment of or on account of such taxes shall be
made under such terms and conditions as the  superintendent  prescribes,
except  that  no  such  payment  may be required or made if such company
would become impaired by the making of such payment or if  such  payment
would  reduce  its  capital  and  surplus  below  the  minimum statutory
requirements for organization of a like new life insurance  company.  No
dividends  to  shareholders  shall  be declared unless all premium taxes
have been fully paid.
2023 New York Laws › ISC - Insurance › Article 75 - Life Insurance Guaranty Fund › 7506 - Companies Excluded From Article.

§ 7506. Companies excluded from article. There is hereby excluded from
  the  provisions of this article any life insurance company organized and
  operated, without profit  to  any  private  shareholder  or  individual,
  exclusively  to  aid  and  strengthen charitable, religious, missionary,
  educational  or  philanthropic  institutions  by  issuing  policies   or
  contracts   only  to  or  for  the  benefit  of  such  institutions,  to
  individuals engaged in serving such institutions and to members of their
  immediate families.
2023 New York Laws › ISC - Insurance › Article 76 - Property/casualty Security Funds › 7601 - Property/casualty Insurance Security Fund; Public Motor Vehicle Liability Security Fund.

§  7601.  Property/casualty  insurance  security  fund;  public  motor
vehicle  liability  security  fund.  (a)  The  property  and   liability
insurance  security  fund  is  continued and shall hereafter be known as
"the property/casualty insurance security fund".
(b) The public motor vehicle liability security fund is continued.
(c) The property/casualty insurance security fund shall consist of all
payments made to it by  insurers  and  of  securities  acquired  by  and
through  the  use  of moneys belonging to it, together with interest and
accretions earned upon such payments  or  investments  earned  prior  to
January first, nineteen hundred seventy-four.
(d)  The public motor vehicle liability security fund shall consist of
all payments made to it by insurers and of securities  acquired  by  and
through  the  use  of moneys belonging to it, together with interest and
accretions earned upon such payments or investments.
(e) Each fund shall be administered separately by  the  superintendent
in accordance with this article.
2023 New York Laws › ISC - Insurance › Article 76 - Property/casualty Security Funds › 7604 - Public Motor Vehicle Liability Security Fund.

§  7604. Public motor vehicle liability security fund. (a) The purpose
of the public motor vehicle liability security fund  is  to  secure  the
benefits  contemplated  by  section three hundred seventy of the vehicle
and traffic law in those cases where a policy of insurance or  corporate
surety  bond, therein described, of a solvent and responsible insurer is
accepted by the commissioner of motor vehicles as a compliance with such
section. The fund shall be used to pay allowed claims of injured parties
and policyholders under insurance policies or  surety  bonds,  remaining
unpaid,  in  whole  or in part, by reason of the insurer's insolvency or
its  inability  to  meet  its  insurance  obligations   (including   any
obligation for the return of unearned premiums) provided the insurer has
made payments to the fund as required by subsection (b) hereof.
(b) (1) Contributions to this fund shall be determined on the basis of
net direct written premiums on insurance policies or surety bonds issued
to meet the requirements of section three hundred seventy of the vehicle
and traffic law.
(2)  Every  insurer  issuing  such  policies or bonds, upon filing its
quarterly return pursuant to section seven thousand six hundred five  of
this  article,  shall  pay into the fund three percent of its net direct
written premiums as shown for the period covered by such return.
2023 New York Laws › ISC - Insurance › Article 76 - Property/casualty Security Funds › 7605 - Quarterly Returns.

§  7605.  Quarterly returns. With respect to each fund subject to this
  article, every insurer on or before the fifteenth days of February, May,
  August and November of each year, shall file, with the commissioner  and
  the  superintendent  identical  returns,  subscribed and affirmed by the
  insurer to be true under the penalties of perjury, on a form  prescribed
  by the superintendent, stating the amount of net direct written premiums
  charged  by  such insurer during the quarter year ending on the last day
  of the second month preceding that in which the report is required to be
  filed.
2023 New York Laws › ISC - Insurance › Article 76 - Property/casualty Security Funds › 7606 - Determination of Net Value of Funds; Limits.

§  7606.  Determination  of  net  value  of  funds;  limits.  (a)  The
superintendent shall annually, on or before March first,  ascertain  and
determine  the  net value of each fund as of the next preceding December
thirty-first by deducting from the value of the  assets  of  each  fund,
ascertained pursuant to this article, the aggregate actual and estimated
liabilities  of  each fund as determined by the superintendent. When the
net value of a fund, as thus determined,  reaches  an  amount  equal  to
fifteen  percent  of  the  outstanding  claim reserves of all authorized
insurers,  incurred  under  policies  or  bonds  providing  benefits  as
specified  in subsection (a) of section seven thousand six hundred three
or subsection (a) of section seven thousand six  hundred  four  of  this
article, as the case may be, no further contributions to such fund shall
be required to be made.
(b)  Whenever,  thereafter, the amount of a fund is reduced below such
fifteen percent, by reason of payments from,  and  known  and  estimated
liabilities  of,  that  fund,  then  contributions to such fund shall be
resumed and continued until that fund, over  and  above  its  known  and
estimated liabilities, reaches such amount.
2023 New York Laws › ISC - Insurance › Article 76 - Property/casualty Security Funds › 7607 - Management and Investment of Funds.

§  7607. Management and investment of funds. (a) Each of the two funds
governed by this article shall be separate and apart.  Each  fund  shall
also  be separate and apart from any other fund and from all other state
moneys, and the faith and credit of the state of New York is pledged for
their safekeeping. The commissioner shall be the custodian of the funds.
All disbursements shall be made by the commissioner upon vouchers signed
by the superintendent, or his deputy. The moneys of  the  funds  may  be
invested  by  the commissioner in obligations of the United States or of
this state and in interest bearing certificates of deposit of a bank  or
trust company located and authorized to do business in this state, or of
a  national  bank  located  in this state, secured by a pledge of direct
obligations of the United States or of the  state  of  New  York  in  an
amount  equal  to  the  amount  of  such  certificates of deposit, or in
accordance with the provisions of section ninety-eight-a  of  the  state
finance law.
(b)  With  respect  to  the  moneys in the property/casualty insurance
security fund the commissioner may also invest in:
(1) obligations of public benefit corporations whose  obligations  are
legal for investment by public officers and bodies of this state;
(2)  up  to thirty-three and one-third percent of the net value of the
fund in mortgage loans or deeds of trust on real  property  improved  by
one,  two,  three  or  four  family  residences  owned  by  one  or more
individuals and occupied by an owner and  located  in  this  state.  The
amount  invested in mortgage loans and deeds of trust may not exceed the
lesser of ninety percent of the appraised value of the real property  or
thirty-five  thousand  dollars if a one-family residence, forty thousand
dollars if a two-family residence,  forty-five  thousand  dollars  if  a
three-family  residence,  or  fifty  thousand  dollars  if a four-family
residence. The mortgage or deed  of  trust  shall  provide  for  monthly
principal  and  interest  payments  in  amounts  sufficient  to  pay all
interest and effect full  repayment  of  principal  within  seventy-five
percent of the estimated remaining useful life of the building or thirty
years, whichever is less.
(c)  The  commissioner  may  sell  any  investment  of either fund, if
advisable, for proper administration or in the  best  interests  of  the
fund.
2023 New York Laws › ISC - Insurance › Article 76 - Property/casualty Security Funds › 7608 - Payments From Funds; Subrogation; Limit on Payments.

§  7608.  Payments  from  funds;  subrogation;  limit on payments. (a)
Payments from the funds  shall  be  made  by  the  commissioner  to  the
superintendent   acting  as  liquidator,  rehabilitator  or  conservator
pursuant to article seventy-four of this chapter upon the  authority  of
appropriate  certificates filed with him by the superintendent acting in
such capacity.
(b) (1) Payments from the funds upon allowed claims give no  right  of
recovery   by  the  commissioner  as  custodian  of  the  funds  against
principals or assureds under policies of insurance or surety bonds,  for
the benefit and reimbursement of the fund.
(2)  Any  assured  under such a policy of insurance or surety bond who
pays, in whole or in part, any injured party claim which is eligible for
payment, in whole or  in  part,  from  the  funds,  shall  thereupon  be
subrogated  to  the  injured  party's rights against the fund but not in
excess of the subrogee's  claim  as  allowed  in  the  proceeding  under
article seventy-four of this chapter.
(c)  No  payment  from  the  funds shall exceed the limit of liability
provided for in the insurance policy or surety bond.
2023 New York Laws › ISC - Insurance › Article 76 - Property/casualty Security Funds › 7609 - Rights of Funds Against Insolvent Insurers.

§   7609.   Rights  of  funds  against  insolvent  insurers.  (a)  The
commissioner as custodian of each of the funds shall be  entitled  to  a
valid claim against an insurer which becomes insolvent or unable to meet
its   insurance   obligations,   or   its   liquidator,   rehabilitator,
conservator, receiver, or trustee in bankruptcy, in an amount  equal  to
the  liabilities,  including  loss  adjustment expenses relating to such
liabilities, of the insurer paid from the fund  less  the  net  payments
paid into the fund by such insurer.
(b)  All  moneys  recovered  through  the prosecution of claims in the
liquidation,  rehabilitation  or  conservation   proceeding   shall   be
forthwith   placed  to  the  credit  of  the  appropriate  fund  by  the
commissioner.
2023 New York Laws › ISC - Insurance › Article 76 - Property/casualty Security Funds › 7610 - Defense of Claims.

§  7610.  Defense  of  claims.  (a)  The  superintendent  may,  in his
discretion, designate or appoint a  duly  authorized  representative  to
appear  before  any  court or other body or official having jurisdiction
and defend any action or proceeding against principals  or  assureds  on
insurance  policies or bonds issued to them where the insurer has become
insolvent  or  unable   to   meet   its   insurance   obligations.   The
superintendent  shall  have,  as  of  the  date  of  such  insolvency or
inability to meet its insurance obligations, only the rights  which  the
insurer  would have had if not insolvent or unable to meet its insurance
obligations.
(b) For the purposes of this section, the  superintendent  shall  have
power to employ such counsel, clerks and assistants as may be necessary.
2023 New York Laws › ISC - Insurance › Article 76 - Property/casualty Security Funds › 7611 - Expense of Administering Funds.

§   7611.   Expense   of  administering  funds.  (a)  The  expense  of
administering each fund shall be paid out of such  fund.  Prior  to  the
first days of January, April, July and October, there shall be submitted
to  the  director  of  the  budget  for  approval an estimated budget of
expenditures for the succeeding three months.
(b) There may not be expended for the  purpose  of  administering  the
funds more than the amounts as authorized by the director of the budget.
The  superintendent  shall  serve  as administrator of the funds without
additional compensation, but may be allowed and paid from the funds  the
expenses incurred in performing his duties in connection with the funds.
The  compensation  of persons employed by the superintendent, within the
amounts approved  by  the  director  of  the  budget,  shall  be  deemed
administration expense payable from the funds.
2023 New York Laws › ISC - Insurance › Article 76 - Property/casualty Security Funds › 7612 - Foreign and Alien Insurers.

§  7612.  Foreign  and  alien insurers. Every foreign or alien insurer
  subject to this article is deemed to have consented to the  adjudication
  of  all  claims  secured  by  this article in a proceeding under article
  seventy-four of this chapter.
2023 New York Laws › ISC - Insurance › Article 76 - Property/casualty Security Funds › 7614 - Penalties.

§ 7614. Penalties. (a) If any insurer fails to file any return or make
any payment required by this article, or if the superintendent has cause
to  believe  that  any  return  or  other  statement  filed  is false or
inaccurate in any particular, or that any payment made is incorrect,  he
may  examine  all  the books and records of the insurer to ascertain the
facts and determine the correct amount to be paid and may proceed in any
court of competent jurisdiction to recover for the benefit of  the  fund
any sums shown to be due upon such examination and determination.
(b) Any insurer which fails to make any such required statement, or to
make  any  payment  to  the  fund when due, shall thereby forfeit to the
appropriate fund a penalty of five percent of the amount  determined  to
be  due  plus  one  percent  of  such amount for each month of delay, or
fraction thereof, after the expiration of the first month of such delay.
If satisfied that the delay was excusable, the superintendent may  remit
all or any part of the penalty.
(c)  The superintendent, in his discretion, may revoke the certificate
of authority to do business in this state of any foreign  insurer  which
fails  to  comply  with  this  article  or  to  pay  any penalty imposed
hereunder.
2023 New York Laws › ISC - Insurance › Article 77 - The Life and Health Insurance Company Guaranty Corporation of New York Act › 7702 - Purpose.

§  7702.  Purpose.  The purpose of this article is to provide funds to
  protect policy owners, insureds, health care  providers,  beneficiaries,
  annuitants,  payees  and  assignees  of  life insurance policies, health
  insurance  policies,   annuity   contracts,   funding   agreements   and
  supplemental  contracts  issued  by  life  insurance  companies,  health
  insurance companies, and property/casualty insurance companies,  subject
  to   certain   limitations,   against  failure  in  the  performance  of
  contractual obligations due to  the  impairment  or  insolvency  of  the
  insurer  issuing such policies, contracts, or funding agreements. In the
  judgment of the legislature, the  foregoing  objects  and  purposes  not
  being  capable  of accomplishment by a corporation created under general
  laws, the creation  of  a  not-for-profit  corporation  of  insurers  is
  provided  for  by  this  article  to  enable the guarantee of payment of
  benefits  and  of  continuation  of  coverages,  and  members   of   the
  corporation  are subject to assessment to carry out the purposes of this
  article.
2023 New York Laws › ISC - Insurance › Article 77 - The Life and Health Insurance Company Guaranty Corporation of New York Act › 7706 - Creation of the Corporation.

§   7706.  Creation  of  the  corporation.  (a)  There  is  created  a
not-for-profit corporation to be known as "The Life and Health Insurance
Company Guaranty Corporation of  New  York".  To  the  extent  that  the
provisions  of  the  not-for-profit corporation law do not conflict with
the provisions  of  this  article  or  the  plan  of  operation  of  the
corporation  hereunder the not-for-profit corporation law shall apply to
the corporation and the  corporation  shall  be  a  type  C  corporation
pursuant  to  the  not-for-profit  corporation  law.  If  an  applicable
provision of this article or the plan of operation  of  the  corporation
hereunder   relates   to  a  matter  embraced  in  a  provision  of  the
not-for-profit corporation law but is not in  conflict  therewith,  both
provisions  shall apply. All member insurers shall be and remain members
of the corporation  as  a  condition  of  their  authority  to  transact
insurance  in  this  state.  The corporation shall perform its functions
under the plan of operation established and approved under section seven
thousand seven hundred ten of this article and shall exercise its powers
through a board of directors established under  section  seven  thousand
seven  hundred seven of this article. For purposes of administration and
assessment the corporation shall maintain two accounts:
(1) the health insurance account; and
(2) the life insurance, annuity and funding agreement account.
(b) The corporation shall come under the immediate supervision of  the
superintendent and shall be subject to the applicable provisions of this
article.
2023 New York Laws › ISC - Insurance › Article 77 - The Life and Health Insurance Company Guaranty Corporation of New York Act › 7707 - Board of Directors.

§  7707.  Board  of  directors.  (a)  The  board  of  directors of the
corporation shall consist of not less than five nor more  than  thirteen
member  insurers  serving terms as established in the plan of operation.
The members of the board shall be selected by member insurers subject to
the approval of the superintendent. Vacancies  on  the  board  shall  be
filled  for  the  remaining period of the term by a majority vote of the
remaining board members, subject to the approval of the  superintendent.
To  select  the  initial  board of directors, and initially organize the
corporation, the superintendent shall give notice to all member insurers
of the time and place of  the  organizational  meeting.  In  determining
voting rights at the organizational meeting each member insurer shall be
entitled to one vote in person or by proxy. If the board of directors is
not  selected  within  sixty  days  after  notice  of the organizational
meeting, the superintendent may  appoint  the  initial  members  of  the
board.
(b) In approving selections or in appointing members to the board, the
superintendent  shall  consider,  among other things, whether all member
insurers are fairly represented.
(c) Members of the board may be reimbursed  from  the  assets  of  the
corporation  for  expenses  incurred  by them as members of the board of
directors but shall not otherwise be compensated by the corporation  for
their services.
(d)  The  superintendent  shall  be  ex-officio  chair of the board of
directors but shall not be entitled to vote.