2023 New York Laws › ISC - Insurance › Article 77 - The Life and Health Insurance Company Guaranty Corporation of New York Act › 7703 - Scope.

§  7703.  Scope.  (a)  (1)  This  article  shall  apply to direct life
insurance  policies,  health  insurance  policies,  annuity   contracts,
funding   agreements,  and  supplemental  contracts  issued  by  a  life
insurance  company,  health  insurance  company,  or   property/casualty
insurance  company  licensed  to  transact  life  or health insurance or
annuities in this state at the time the  policy,  contract,  or  funding
agreement  was  issued  or  on  the  date  of  entry of a court order of
liquidation or rehabilitation with respect to such a company that is  an
impaired or insolvent insurer, as the case may be.
(2)  Except  as otherwise provided in this section, this article shall
apply to the policies, contracts, and funding  agreements  specified  in
paragraph one of this subsection with regard to a person who is:
(A)  an  owner  or  certificate  holder  under  a policy, contract, or
funding agreement and in each case who:
(i) is a resident of this state; or
(ii) is not a resident of this  state,  but  only  under  all  of  the
following conditions:
(I)  the  insurer  that  issued  the policy, contract, or agreement is
domiciled in this state;
(II) the state or states in which the person resides  has  or  have  a
guaranty entity similar to the corporation created by this article; and
(III)  the person is not eligible for coverage by a guaranty entity in
any other state because the insurer was not licensed  or  authorized  in
that state at the time specified in that state's guaranty entity law;
(B)  the  beneficiary,  assignee,  or payee of the person specified in
subparagraph (A) of this  paragraph,  regardless  of  where  the  person
resides; or
(C)  a  health  care  provider  that has rendered services to a person
specified in subparagraph (A) of this paragraph.
(3) Except as otherwise provided in this section:
(A) with regard to a group annuity contract (or portion  of  any  such
contract)  that  does not guarantee annuity benefits with respect to any
specific individual identified in the contract, this article shall apply
to a person who is the owner of such a contract:
(i) if the contract is issued to or  in  connection  with  a  specific
benefit  plan where the plan sponsor has its principal place of business
in  this  state;  provided,  however,  that  for  the  purpose  of  this
subparagraph:
(I) "plan sponsor" shall mean:
(aa)  the  employer  in  the  case  of  a  benefit plan established or
maintained by a single employer;
(bb)  the  employee  organization  in  the  case  of  a  benefit  plan
established  or  maintained  by  an employee organization, provided that
"employee organization" shall mean any labor union or  any  organization
of  any  kind,  or  any  agency  or  employee  representation committee,
association, group, or plan, in which  employees  participate  and  that
exists  for  the purpose, in whole or in part, of dealing with employers
concerning an employee benefit plan,  or  other  matters  incidental  to
employment  relationships,  or  any  employees'  beneficiary association
organized for the purpose in whole or in part, of  establishing  such  a
plan; or
(cc) in the case of a benefit plan established or maintained by two or
more  employers  or  jointly  by  one  or more employers and one or more
employee organizations,  the  association,  committee,  joint  board  of
trustees,  or  other similar group of representatives of the parties who
establish or maintain the benefit plan; and
(II) "principal place of business" shall mean:
(aa) the state in which the individuals who establish policy  for  the
direction,  control, and coordination of the operations of the entity as
a whole primarily exercise that function, except that if more than fifty
percent of the participants in the benefit plan are employed in a single
state,  then  that  state  shall  be deemed to be the principal place of
business of the plan sponsor; or
(bb) with regard to a plan sponsor of  a  benefit  plan  described  in
subitem  (cc)  of  clause  (I)  of  this  item,  the  principal place of
business, as determined pursuant to subitem (aa) of this clause, of  the
employer or employee organization that has the largest investment in the
benefit plan; or
(ii) issued to or in connection with a government lottery if the owner
is a resident; and
(B) with regard to a structured settlement annuity, this section shall
apply  to  a  person  who  is  a  payee  under the structured settlement
annuity, or the beneficiary of a payee if the payee is deceased, if  the
payee (or beneficiary):
(i)  is  a  resident,  regardless of where the owner of the structured
settlement annuity resides; or
(ii) is not a resident, but only under the following conditions:
(I) (aa) the owner of the structured settlement annuity is a resident;
or
(bb) the owner of the structured settlement annuity is not a resident,
but the  insurer  that  issued  the  structured  settlement  annuity  is
domiciled  in  this state and the state in which the owner resides has a
guaranty entity similar to the corporation created by this article; and
(II)  neither  the  payee  (or  beneficiary)  nor  the  owner  of  the
structured  settlement  annuity  is  eligible for coverage by a guaranty
entity of the state  in  which  the  payee  (or  beneficiary)  or  owner
resides.
(b) This article shall not apply to:
(1) that portion or part of a variable life insurance policy, variable
annuity  contract  or  variable  funding  agreement not guaranteed by an
insurer;
(2) that portion or part of any policy, contract  or  agreement  under
which the risk is borne by the holder thereof;
(3)  any  policy,  contract, or agreement, or part thereof, assumed by
the impaired or insolvent insurer under a contract of reinsurance, other
than reinsurance for which assumption certificates have been issued;
(4) any policy, contract,  or  agreement  issued  by  or  through  the
facilities  of  the  New  York  Insurance Exchange, Inc., or any similar
entity, or pursuant to article sixty-three of this chapter;
(5) any policy, contract, or agreement issued or issued  for  delivery
outside  the United States, to the extent it covers persons not citizens
or permanent residents of the United States; and
(6) any policy, contract, or agreement payable other  than  in  United
States dollars.
(c) This article shall not apply to a person:
(1)  who  is  a  payee,  or the beneficiary of a payee if the payee is
deceased, of an owner resident if the payee (or beneficiary) is afforded
any coverage by a guaranty entity of another state; or
(2) covered under subparagraph (A) of paragraph  three  of  subsection
(a) of this section if the guaranty entity of another state provides any
coverage to the person.