2023 New York Laws › ISC - Insurance › Article 13 - Assets and Deposits › 1312 - Trusteed Surplus of Alien Insurers; Impairment.

§  1312.  Trusteed  surplus of alien insurers; impairment.  (a) (1) In
addition to other requirements of this chapter  every  authorized  alien
insurer  shall, not later than the first day of March in each year, file
with the superintendent a statement (herein called a  "trusteed  surplus
statement"), on a form prescribed by him, showing at last year-end:
(A)  all  its general state deposits, meaning assets within the United
States deposited with officers of any state in trust for the security of
all its policyholders, or policyholders and creditors, within the United
States;
(B) all its special state deposits, meaning assets within  the  United
States deposited with officers of any state in trust for the security of
its  policyholders,  or  policyholders  and  creditors,  in a particular
state;
(C) all its trusteed assets, meaning assets within the  United  States
held by a trustee or trustees for the security of all its policyholders,
or policyholders and creditors, within the United States;
(D)  if  a  life  insurance company, the amount of its policy loans to
policyholders within the United States, not exceeding the amount of  the
legal reserve required on each such policy;
(E)  all its reserves and other liabilities arising out of policies or
obligations issued, assumed or incurred in the United States; and
(F) such  further  information  as  may  be  necessary  to  apply  the
provisions of this section.
(2)  In determining the net amount of the insurer's liabilities in the
United States, a deduction may be made: (i) for  reinsurance  on  losses
with  authorized  insurers,  less  unpaid  reinsurance  premiums, with a
schedule showing by companies the amount deducted, and (ii) for unearned
premiums on agents' balances  or  uncollected  premiums  not  more  than
ninety  days  past due. Any liability on an asset not considered in such
statement may be applied against such asset.
(3) No credit shall be allowed in such statement for any special state
deposit  held  for  the   exclusive   benefit   of   policyholders,   or
policyholders and creditors, of any particular state except as an offset
against the liabilities of such alien insurer in such state.
(4) The accrued interest at date of statement on assets deposited with
states  and  trustees  shall  be  allowed  in such statement, where such
interest is collected by the states or trustees.
(b) (1) Such trusteed surplus statement shall be signed  and  verified
by  the  United  States  manager,  attorney-in-fact, or a duly empowered
assistant United States manager, of the  alien  insurer.  The  items  of
securities  and other property held under trust deeds shall be certified
to by the United States trustee or trustees. The superintendent  may  at
any  time  require a further statement of the same kind and of such date
as he may determine.
(2) Every report on examination of the  United  States  branch  of  an
alien  insurer shall include a trusteed surplus statement as of the date
of examination in addition to the general  statement  of  the  financial
condition of such United States branch.
(c)  (1)  The  aggregate value of the insurer's general state deposits
and trusteed assets  less  the  aggregate  net  amount  of  all  of  its
liabilities   and  reserves  in  the  United  States  as  determined  in
accordance with this section shall be known as its "trusteed surplus" in
the United States. Whenever it appears to the  superintendent  from  any
such statement or any report that an alien insurer's trusteed surplus is
reduced  below  the  greater  of the minimum capital required of, or the
minimum surplus  to  policyholders  required  to  be  maintained  by,  a
domestic  insurer  licensed  to transact the same kinds of insurance, he
shall determine the amount of such impairment  and  order  the  insurer,

through  its  United  States  manager  or  attorney,  to  eliminate such
impairment within such period as he designates,  not  more  than  ninety
days  from  service of the order. He may also by order revoke or suspend
such  insurer's  license or prohibit it from issuing new policies in the
United States while such impairment exists.
(2) If at the expiration of such designated period  such  insurer  has
not   satisfied   the  superintendent  that  such  impairment  has  been
eliminated, the superintendent may proceed against such insurer pursuant
to the provisions of article seventy-four of this chapter as an  insurer
whose  condition is such that its further transaction of business in the
United States will be hazardous to its policyholders, its  creditors  or
the public in the United States.