2023 New York Laws › ISC - Insurance › Article 15 - Holding Companies › 1501 - Definitions; Determinations.

§  1501.  Definitions; determinations. (a) In this article, unless the
context shall otherwise require:
(1) "Person" means  an  individual,  partnership,  firm,  association,
corporation,  joint-stock  company,  trust,  any  similar  entity or any
combination of the foregoing acting in concert.
(2) "Control", including the terms "controlling", "controlled by"  and
"under  common control with", means the possession direct or indirect of
the power to direct  or  cause  the  direction  of  the  management  and
policies   of   a  person,  whether  through  the  ownership  of  voting
securities, by contract (except  a  commercial  contract  for  goods  or
non-management  services) or otherwise; but no person shall be deemed to
control another person solely by reason  of  his  being  an  officer  or
director of such other person. Subject to subsection (c) hereof, control
shall  be  presumed  to exist if any person directly or indirectly owns,
controls or holds with the power to vote ten  percent  or  more  of  the
voting securities of any other person.
(3) "Holding  company"  means  any  person  who directly or indirectly
controls any authorized insurer.
(4) "Controlled  insurer"  means  an  authorized  insurer   controlled
directly or indirectly by a holding company.
(5) "Controlled  person"  means  any  person  other  than a controlled
insurer, who is controlled directly or indirectly by a holding company.
(6) "Holding company system" means a holding company together with its
controlled insurers and controlled persons.
(7) "Enterprise risk" means  any  activity,  circumstance,  event,  or
series  of  events  involving  the  holding  company system that, if not
remedied promptly, is likely to have a material adverse effect upon  the
financial  condition  or liquidity of the insurer or its holding company
system, including anything that would  cause  the  insurer's  risk-based
capital  to  fall  into company action level as set forth in section one
thousand  three  hundred  twenty-two  or  one  thousand  three   hundred
twenty-four  of this chapter, or that would cause further transaction of
business to be hazardous to the insurer's policyholders or creditors  or
the public.
(8)  "Group  capital calculation instructions" means the group capital
calculation instructions as adopted by the NAIC and as  amended  by  the
NAIC  from time to time in accordance with the procedures adopted by the
NAIC, except where such instructions conflict  with  the  laws  of  this
state  and  subject  to  exceptions  the  superintendent  may  take in a
regulation upon a written finding  that  the  exceptions  would  not  be
unduly burdensome on the holding company or insurer.
(9) "NAIC" means the National Association of Insurance Commissioners.
(10)  "NAIC liquidity stress test framework" means an NAIC publication
that  includes  a  history  of  the  NAIC's  development  of  regulatory
liquidity  stress  testing, the scope criteria applicable for a specific
data year, and the liquidity  stress  test  instructions  and  reporting
templates  for  a  specific data year, such scope criteria, instructions
and reporting template being as adopted by the NAIC and  as  amended  by
the  NAIC from time to time in accordance with the procedures adopted by
the NAIC, except where such instructions conflicts with the laws of this
state and subject  to  exceptions  the  superintendent  may  take  in  a
regulation  upon  a  written  finding  that  the exceptions would not be
unduly burdensome on the holding company or insurer.
(11) "Scope criteria" means the designated exposure bases  along  with
minimum  magnitudes  thereof  for  the  specified  data  year,  used  to
establish a preliminary list of insurers considered scoped into the NAIC
liquidity stress test framework for that data year.
(b) Notwithstanding the provisions of paragraph two of subsection  (a)
of  this  section,  the  superintendent  may determine, after notice and
opportunity to be heard, that a person exercises directly or  indirectly
either  alone or pursuant to an agreement with one or more other persons
such  a  controlling  influence  over  the  management or policies of an
authorized insurer as to make it necessary or appropriate in the  public
interest  or  for  the  protection  of  the  insurer's  policyholders or
shareholders that the person be deemed to control the insurer.
(c) The superintendent may determine upon application that any  person
does  not  or  will  not upon the taking of some proposed action control
another person. Such determination shall be made within thirty  days  or
such  further  period as the superintendent may prescribe. The filing of
the application in good faith by any person shall relieve the  applicant
from any obligation or liability imposed by this article with respect to
the  subject  of  the  application,  except  as contained in section one
thousand five hundred six of this article, until the superintendent  has
acted  upon the application. The superintendent may prospectively revoke
or modify his determination, after notice and opportunity to  be  heard,
whenever  in  his judgment revocation or modification is consistent with
this article.
(d) For the purposes of this article only, every foreign life  insurer
which  is authorized to do business in this state which is controlled by
a person not authorized to do an insurance business in this  state,  and
which, during its three preceding fiscal years taken together, or during
any  lesser  period  of  time  if  it  has been licensed to transact its
business in New York only for such lesser period of time, has written an
average of more gross premiums in the state of  New  York  than  it  has
written  in its state of domicile during the same period, and such gross
premiums written constitute twenty percent or more of  its  total  gross
premiums  written everywhere in the United States for such three year or
lesser period, as reported in its three most recent  annual  statements,
shall  be  deemed  a  domestic  insurer,  provided written notice of the
applicability of this  subsection  is  given  to  such  company  by  the
superintendent prior to this article being applicable.