2023 New York Laws › ISC - Insurance › Article 12 - Organization and Corporate Procedure › 1218 - Regulation of Stock Ownership, Interlocking Directors and Common Management.

§  1218.  Regulation  of  stock  ownership, interlocking directors and
common management. (a) Any domestic insurer and  any  foreign  or  alien
insurer authorized to do business in this state may retain, invest in or
acquire  all or any shares, or, by contract of reinsurance or otherwise,
acquire the whole or a substantial part of  the  assets,  of  any  other
insurer, or have a common management with any other insurer, unless such
retention,  investment, acquisition or common management is inconsistent
with any other provision of this chapter or unless the effect thereof:
(1) in the case of a domestic or alien insurer, may  be  substantially
to  lessen  competition  in  any  line  of  commerce in insurance in any
section of the country or to tend to create a monopoly therein, or
(2) in the case of a foreign insurer, may be substantially  to  lessen
competition  in  any  line  of commerce in insurance in this state or to
tend to create a monopoly therein.
(b) No person shall serve as a director of two or more insurers  under
this  chapter which are or during the next preceding two years have been
engaged in writing directly the same  lines  of  commerce  in  insurance
unless  such  interlocking  directorate  is  not  used  as  a  means  to
substantially lessen competition generally in the business of  insurance
or  create a monopoly therein, but any person otherwise qualified may be
a director of  two  or  more  insurers  having  a  common  ownership  or
management  which  is  not  otherwise  proscribed  if  such interlocking
directorate  is  not  used  as  a  means  of   substantially   lessening
competition  generally  in  the  business  of insurance or of creating a
monopoly therein.
(c) (1) Whenever the superintendent believes  this  section  is  being
violated,  the  superintendent  shall serve upon the insurer or insurers
and the director or directors, as the case may be, a notice pursuant  to
section  three  hundred  four of the financial services law of a hearing
before the superintendent to be held not less  than  thirty  days  after
such service and requiring such insurer or insurers and such director or
directors,  as the case may be, to show cause why an order should not be
made by the superintendent directing such insurer or insurers  and  such
director or directors, as the case may be, to cease and desist from such
violation.
(2)  If,  upon  such  hearing, the superintendent finds a violation of
this section he shall issue and  cause  to  be  served  upon  each  such
insurer  or insurers and such director or directors, as the case may be,
an order reciting the facts found by him, and setting forth the respects
in which there has been a  violation,  and  directing  such  insurer  or
insurers  and  such  director or directors, as the case may be, to cease
and desist from such violation and he may in such order direct each such
insurer to divest itself of the shares or assets held or to  rid  itself
of the directors serving contrary to the provisions of subsection (a) or
(b) of this section.
(3)  A  violation of any such cease and desist order shall, subject to
judicial review, be deemed a violation of this chapter.
(4) The attorney general  may  maintain  a  proceeding  upon  his  own
information  to  prevent and restrain violations of this section and the
judgment therein against any defendant may grant affirmative  relief  to
the same extent as may the superintendent by an order issued pursuant to
this section.
(5)  Any person, firm, corporation or association shall be entitled to
maintain a proceeding  to  obtain  injunctive  relief  against  loss  or
damages  by  a  violation of this section at whatever time and under the
same conditions and principles as when injunctive relief against conduct
that will cause loss or damage is granted by the courts under  the  laws
of  this  state  governing  such  proceedings.  In  such proceeding, the

plaintiff also may recover the damages sustained by him and the cost  of
suit, including a reasonable attorney's fee.
(d)  Nothing  contained  in  this  section shall be deemed to alter or
abridge any rights or remedies otherwise available to  any  person,  the
superintendent and the attorney general under any law of this state.