2023 New York Laws › ISC - Insurance › Article 75 - Life Insurance Guaranty Fund › 7503 - The Life Insurance Guaranty Corporation.

§  7503.  The  Life Insurance Guaranty Corporation. (a) The non-profit
body corporate  known  as  "The  Life  Insurance  Guaranty  Corporation"
created  pursuant  to  chapter  four  hundred  eighty-one of the laws of
nineteen hundred forty-one, is hereby continued. It shall be composed of
the superintendent  ex-officio  and  one  representative  of  each  life
insurance  company incorporated or organized under any law of this state
which shall have actively and continuously transacted business  in  this
state  for  a period of at least three years prior to the effective date
of article seventy-seven of this chapter. No company shall  be  eligible
for  membership  in  the  corporation  if a proceeding instituted by the
superintendent pursuant to  article  seventy-four  of  this  chapter  is
pending  against  it  in  which event such company shall not be eligible
until the superintendent shall certify that it is so eligible.
(b) Every such company which shall become eligible for  membership  in
the  corporation shall, within forty-five days from the date on which it
becomes  so  eligible,  file  with  the  superintendent  a   certificate
designating  its  representative  for  the purposes of such corporation.
Upon failure  of  any  company  to  make  such  designation  within  the
forty-five  day  period,  the  superintendent  shall forthwith make such
designation for and on its behalf and by mail  give  notice  thereof  to
such  company.  The  designation,  whether  made  by  the company or the
superintendent, may be revoked by  the  company  at  any  time  with  or
without  cause.  Any  vacancy  by death, resignation or removal shall be
filled in  the  same  manner  as  for  the  original  designation  of  a
representative.
(c) Each such representative shall also be known as a director and all
representatives  and  the  superintendent  shall constitute the board of
directors which shall have complete charge and control of the management
of the corporation in accordance with the corporate  powers  hereinafter
set  forth,  including  power to adopt administrative rules, regulations
and by-laws advisable for the purposes and objects of  the  corporation.
The superintendent shall be ex-officio chairman of the board.
(d)  No  director,  officer,  agent  or  other  representative  of the
corporation  shall  be  individually  liable  to  any  person,  firm  or
corporation,  including the corporation, for any act or omission to act,
or for any liability incurred or assumed, on behalf of  the  corporation
or  by virtue hereof. Any such liability so incurred or assumed shall be
collectible only out of the  fund;  nor  shall  any  member  company  be
subject to any liability except for assessment as herein provided.
(e)  The  corporation  shall be under the immediate supervision of the
superintendent and shall be subject to such provisions of  this  chapter
as the superintendent shall deem applicable.
(f) The corporation shall have the power:
(1)  to  use  a corporate seal, to contract, to sue and be sued and to
possess and exercise all powers necessary or convenient for the purposes
of this article;
(2) with the approval of the superintendent, to  assume,  reinsure  or
guaranty,  or cause to be assumed, reinsured or guaranteed, partially or
wholly, any or all policies or contracts of any member  company  and  to
make  available  from  the  fund  such sums as may be necessary for such
purposes;
(3) to carry out the provisions of this article, the corporation shall
have and may exercise  all  necessary  rights,  powers,  privileges  and
franchises of a domestic life insurance company except that it shall not
be  authorized  to  issue  contracts  or  policies  unless  they replace
contracts or policies representing obligations in whole or  in  part  of
another domestic life insurance company or of the corporation;
(4)  to  borrow  money  for  the  purposes of the fund with or without
security and pledge such assets in the fund as security for  such  loans
and   in   connection  therewith  to  rehypothecate  any  securities  or
collateral  pledged  to  it  by  a  company,  provided,  however,   that
obligations  of  the corporation shall be legal investments for domestic
life  insurance  companies  and  to  the  extent   authorized   by   the
superintendent may be carried as admitted assets;
(5)  to  collect,  or  enforce by legal proceedings, if necessary, the
payment of, all assessments for which  any  contributor  may  be  liable
under  this article; to collect any obligation due to the corporation or
to the fund; and
(6) to fund a resolution  facility  established  pursuant  to  section
seven thousand seven hundred nineteen of this chapter.
(g)  The corporation shall, subject to such terms and conditions as it
may impose with the approval of the superintendent, assume, reinsure  or
guaranty  the  performance of the policies and contracts issued prior to
the effective date of article  seventy-seven  of  this  chapter  by  any
impaired  or  insolvent member company, and shall have power to receive,
own  and  administer  any  assets  acquired  in  connection  with   such
assumption,  reinsurance  or guaranty; provided, however, that after the
effective date of article seventy-seven of this chapter the  corporation
shall  have  no  responsibility with respect to any claim under any such
policy or contract except (i) to the extent  that  the  amount  of  such
claim  exceeds  the  portion  thereof  that  is  covered  under  article
seventy-seven of this chapter, and (ii) with respect to  any  claim  not
covered  under  article  seventy-seven of this chapter. As to any policy
not in default in  the  payment  of  premiums  subsequent  to  any  such
assumption,  reinsurance  or guaranty, the corporation shall make prompt
payment of the death benefit due under the terms of the policy.
(h) Notwithstanding any other provision of this section, no assumption
by a member company after the effective date of article seventy-seven of
this chapter, of the policies or contracts  of  another  member  company
issued  prior  to  the  effective  date of article seventy-seven of this
chapter, for which  assumption  certificates  have  been  issued,  shall
result  in loss by such policies or contracts of the protection provided
under this article.