2023 New York Laws › ISC - Insurance › Article 77 - The Life and Health Insurance Company Guaranty Corporation of New York Act › 7719 - Resolution Facility.

§  7719. Resolution facility.  (a) The corporation may incorporate one
or more not-for-profit corporations, known as a resolution facility,  in
connection  with the liquidation of an insolvent domestic life insurance
company,  health  insurance  company,  or  property/casualty   insurance
company  under  article  seventy-four of this chapter for the purpose of
administering and disposing of the business of the  insolvent  insurance
company.
(b)   To   the  extent  that  the  provisions  of  the  not-for-profit
corporation law do not conflict with the provisions of this  section  or
the  plan  of  operation  of  the  resolution  facility  hereunder,  the
not-for-profit corporation law shall apply to  the  resolution  facility
and  the  resolution  facility  shall  be  a  non-charitable corporation
pursuant  to  the  not-for-profit  corporation  law.  If  an  applicable
provision  of  this  section  or the plan of operation of the resolution
facility hereunder relates to a matter embraced in a  provision  of  the
not-for-profit  corporation  law  but is not in conflict therewith, then
both provisions shall apply. The corporation shall be a  member  of  the
resolution  facility,  and  other  persons, including the life insurance
guaranty  corporation  continued  under  article  seventy-five  of  this
chapter and guaranty entities of other states, may become members of the
resolution   facility  in  accordance  with  the  resolution  facility's
certificate of incorporation and plan of operation.
(c) In addition to its  certificate  of  incorporation,  a  resolution
facility  shall  submit  to  the superintendent a plan of operation, and
amendments  thereto,  necessary  or  suitable  to   assure   the   fair,
reasonable, and equitable administration of the resolution facility. The
plan  of  operation,  and any amendments thereto, shall become effective
upon approval in writing by the superintendent. The  plan  of  operation
shall constitute the bylaws of the resolution facility.
(d) A resolution facility may:
(1)  guarantee,  assume,  or  reinsure,  or  cause  to  be guaranteed,
assumed, or reinsured, the covered policies, or arrange for  replacement
by  policies  found by the superintendent to be substantially similar to
the covered policies;
(2) exercise, for the purposes of  this  article  and  to  the  extent
approved  by the superintendent, the powers of a domestic life insurance
company,  health  insurance  company,  or  property/casualty   insurance
company  but  in  no  case  may  the resolution facility issue insurance
policies,  annuity  contracts,  funding  agreements,   or   supplemental
contracts other than those issued to perform the contractual obligations
of the impaired or insolvent insurer;
(3)  assure  payment  of  the contractual obligations of the insolvent
insurer; and
(4) provide such moneys, pledges, notes, guarantees, or other means as
are reasonably necessary to discharge its duties.
(e) A resolution facility shall not be subject to  any  provisions  of
this chapter or the financial services law except:
(1) this section; and
(2)  sections  seven  thousand  seven hundred fourteen, seven thousand
seven hundred fifteen, and seven thousand seven hundred sixteen of  this
article,  which  shall  apply  in  the  same manner as they apply to the
corporation.
(f) Notwithstanding subsection (e) of this section, the superintendent
may address to the resolution facility any inquiry in  relation  to  its
transactions  or condition or any matter connected therewith pursuant to
section three hundred eight of this chapter.
(g) (1) If the superintendent determines that the resolution  facility
is  not  administering  and  disposing  of  the business of an insolvent

domestic  life  insurance  company,   health   insurance   company,   or
property/casualty  insurance  company  consistent  with  the  resolution
facility's certificate of incorporation,  plan  of  operation,  or  this
section,  then the superintendent shall provide notice to the resolution
facility and the resolution facility shall have thirty days  to  respond
to the superintendent and cure the defect.
(2)  If,  after  thirty  days, the superintendent continues to believe
that the resolution facility is not administering and disposing  of  the
business  of  an  insolvent  domestic  life  insurance  company,  health
insurance company, or  property/casualty  insurance  company  consistent
with  the  resolution  facility's  certificate of incorporation, plan of
operation, or this section, then the superintendent  may  apply  to  the
court  for  an  order  directing  the resolution facility to correct the
defect or take other appropriate actions.