2023 New York Laws › ISC - Insurance › Article 11 - Licensing of Insurers › 1112 - Reciprocal Provisions as to Taxes, License Fees, Deposits, and Other Requirements.

§ 1112. Reciprocal provisions as to taxes, license fees, deposits, and
other requirements. (a) (1) If, by the laws, or the action of any public
official, of any other state, any insurer organized or domiciled in this
state,  or  its  duly  authorized  agents, shall be, required to deposit
securities in such other state to protect policyholders or for any other
purpose, or shall be required to pay taxes, fines, penalties,  fees  for
licenses or certificates of authority or any other sum for the privilege
of  doing  business  in  such  other state, or shall be subjected to any
restrictions, obligations, conditions or  penalties,  imposed  for  such
privilege,  and  such  requirements  are  greater than those required of
similar insurers organized or domiciled in such other state by the  laws
of  this  state  for  the  privilege  of doing business herein, then all
similar insurers organized or domiciled in such other  state  and  their
duly  authorized  agents in this state shall make like deposits for like
purposes  with  the  superintendent,  and  pay  him  for  taxes,  fines,
penalties,  fees  for  licenses  or certificates of authority or for any
other requirement for the privilege of doing business in this state,  an
amount  determined  in  the  manner  prescribed by such other state, and
shall be subjected to such greater requirements imposed  by  such  other
state  upon  similar  insurers  of  this state and their duly authorized
agents.
(2) (i) For the amount due under this subsection for the calendar year
nineteen hundred eighty-nine, an initial payment shall be made  by  each
insurer  subject  to this subsection of an amount equal to the lesser of
(a) ninety percent of the amount finally determined to be due under this
subsection for the calendar year nineteen hundred  eighty-seven  or  (b)
eighty  percent  of  the  amount finally determined to be due under this
subsection for the calendar  year  nineteen  hundred  eighty-nine.  Such
initial  payment  shall  be  made on or before March fifteenth, nineteen
hundred ninety.
(ii) For the amount due under this subsection for calendar years after
nineteen hundred eighty-nine, an estimated  payment  shall  be  due  and
payable  on  or before the fifteenth day of December. This payment shall
be equal to the lesser of (a)  ninety  percent  of  the  amount  finally
determined  to  be  due  under  this subsection for the second preceding
calendar year or (b) eighty percent of the amount finally determined  to
be due under this subsection for the calendar year.
(iii)  If  any  insurer  fails  to  pay all or any part of the initial
payment or estimated payment due pursuant to subparagraph (i) or (ii) of
this paragraph, it shall be deemed to have made an  underpayment.  There
shall  be  added  to  the  amount  due pursuant to paragraph one of this
subsection,  an  amount  at  the  rate  set  for  underpayments  by  the
commissioner  of  taxation  and finance pursuant to section one thousand
ninety-six of the tax law, minus four percentage points, or if  no  rate
is  set,  at  the  rate  of six percent per annum upon the amount of the
underpayment for the period of the underpayment. In computing the amount
of any interest  required  to  be  paid,  such  interest  shall  not  be
compounded. The amount of the underpayment shall be, with respect to the
initial  payment  or  any  estimated  payment,  the excess of the amount
required to be paid over the amount, if any, paid on or before the  last
day  prescribed  for such payment. If the superintendent demands payment
of the initial payment or any estimated payment, and if such  amount  is
paid  within  ten  days  after  the date of such demand, interest on the
amount so paid shall not be imposed for the period  after  the  date  of
such  demand.  No  portion  of  the  interest  imposed  pursuant to this
subparagraph may be waived.
(iv) Notwithstanding the provisions of section sixteen  of  the  state
finance  law,  interest  shall  be  allowed and paid at the rate set for

overpayments by the commissioner of taxation  and  finance  pursuant  to
section one thousand ninety-six of the tax law, or if no rate is set, at
the  rate  of  six percent per annum upon any overpayment, from the date
payment  was  due  to  a  date  (to be determined by the superintendent)
preceding the date of a refund check by not more than  thirty  days.  In
the  case  of a payment which is made after the last date prescribed for
payment of such payment, no interest shall be allowed or  paid  for  any
day  before  the  date  on  which the payment was made. In computing the
amount of interest required to be  paid,  such  interest  shall  not  be
compounded.  No  interest shall be allowed or paid if the amount thereof
is less than one dollar.
(v) If the  period  for  which  the  amount  is  imposed  pursuant  to
paragraph  one  of  this  subsection  is  less than twelve months, every
insurer shall make estimated payments in accordance with regulations  of
the superintendent.
(b)  If  the superintendent finds that by the laws or official acts of
any foreign country, insurers organized in this  state  are  arbitrarily
denied  the  privilege of doing business in such foreign country, or are
subjected to  unreasonable  requirements  therein,  he  may  revoke  the
licenses  of  all insurers of such country doing business in this state,
and may refuse to issue  licenses  to  every  insurer  of  such  country
thereafter  applying  for  a license to do business in this state, or in
lieu thereof, he may impose like requirements upon every insurer of such
country, until he shall find that such arbitrary denial or  unreasonable
requirements no longer apply.
(c)  If, by the existing or future laws of any other state, any broker
resident within this state and duly licensed as such under this  chapter
may  not  be  licensed  as  a broker in such other state, then no broker
resident in such other state shall be licensed as a broker  within  this
state,  anything  in  this chapter to the contrary notwithstanding. If a
license fee exceeding forty dollars per annum is imposed  by  any  other
state  for  issuing a license to a broker resident within this state, or
the amount of commissions which may be paid to such broker  on  premiums
on  risks  located in any other state shall be limited under the laws of
such state, then, all brokers resident in such other  state  shall  upon
being  licensed  in this state pay a like fee in lieu of that prescribed
by this chapter, and insurance companies authorized to transact business
in this  state  shall  not  pay  to  any  such  nonresident  broker  any
commissions  on  premiums on risks located in this state exceeding those
which the laws of such other state  permit  brokers  of  this  state  to
receive on premiums on risks located in such other state.
* (d)  (1) Should the insurance department, commissioner, director, or
other similar insurance  regulatory  official  of  any  other  state  or
territory  of  the United States impose any sanctions, fines, penalties,
financial   or   deposit   requirements,   prohibitions,   restrictions,
regulatory  requirements,  or  other  obligations  of  any kind upon any
insurance company organized or chartered in this state and  licensed  to
transact  business  in  such  other  state  or territory, because of the
failure of the New York insurance department  to  obtain,  maintain,  or
receive  accreditation  certification  or  any similar form of approval,
compliance, or acceptance from, by, or  as  a  member  of  the  National
Association  of  Insurance  Commissioners, or any committee, task force,
working group, or advisory committee thereof, or because of the  failure
of  the  department  to  comply  with  any  directive,  financial annual
statement requirement,  model  act  or  regulation,  market  conduct  or
financial  examination  report or requirement, or any report of any kind
of  the  National  Association  of  Insurance  Commissioners,   or   any
committee, task force, working group, or advisory committee thereof, the

superintendent shall without exception or exclusion, impose upon any and
all  insurance  companies  organized or chartered in such other state or
territory and licensed to do business in this state the same  sanctions,
fines,  penalties,  financial  or  deposit  requirements,  prohibitions,
restrictions, regulatory requirements, or other obligations imposed upon
the insurance companies of this state.
(2) To the extent that it would be detrimental  to  the  adequate  and
proper  regulation  of insurance in this state to use existing employees
or resources of the department in order to comply  in  a  timely  manner
with  paragraph  (1)  of  this subsection, the superintendent may engage
such other qualified persons and  services  as  may  be  necessary.  The
superintendent  shall recover all of the costs of such compliance in the
manner prescribed in section 313 of the insurance law.
* NB Expired March 31, 1995
* (e) The provisions of this section  shall  not  apply  to  insurance
companies organized or domiciled in a state or country whose laws do not
impose  retaliatory  taxes  or  other  charges  or  which  grant,  on  a
reciprocal basis, exemptions therefrom to insurance companies  organized
or domiciled in this state.
* NB  Expired  March  31,  1995,  relettering  expired on such date is
actually (d) from 367/84 on such date