2023 New York Laws › ISC - Insurance › Article 1 - General Provisions › 107 - Definitions of Terms of General Use in This Chapter.

§  107.  Definitions  of  terms of general use in this chapter. (a) In
this chapter, unless the context otherwise requires:
(1) "Accident and health insurance  company",  means  any  corporation
having power to do the kinds of insurance business specified in item (i)
of paragraph three of subsection (a) of section one thousand one hundred
thirteen  of  this  chapter  or  items  (i)  and (ii) of such paragraph,
provided such company does not have power to do any other kind or  kinds
of insurance business.
(2) "Accredited reinsurer" means an assuming insurer not authorized to
do   an  insurance  business  in  this  state  but  which  (i)  presents
satisfactory evidence to the superintendent that it meets the applicable
standards of solvency required in this state, (ii) is in compliance with
the conditions prescribed by regulation under which a ceding insurer may
be allowed credit  for  reinsurance  recoverable  from  an  insurer  not
authorized  in  this  state,  and  (iii)  has  received a certificate of
recognition as an accredited  reinsurer  issued  by  the  superintendent
pursuant  to  such  regulation;  provided  that  no  insurer shall be an
accredited reinsurer with respect to any kind of insurance not  provided
for in such certificate.
(3)  "Admitted assets" means assets of an insurer which conform to the
requirements of section one thousand three hundred one of this chapter.
(4) "Affiliate" means a corporation a  majority  of  whose  shares  is
owned  or  controlled  by shareholders, directors or officers of another
corporation, who own or control a majority of the shares  of  the  other
corporation.
(5)  "Alien insurer" means any insurer incorporated or organized under
the laws of any foreign nation, or of  any  province  or  territory  not
included under the definition of foreign insurer.
(6)  "American  institution"  means an institution created or existing
under the laws of the United States of America or of any state, district
or territory thereof.
(7)  "Articles  of  association",  when  used  in  reference   to   an
unincorporated  association,  means the basic instrument prescribing the
powers, purposes and organization of the association.
(8) "Assuming insurer" means an insurer which,  under  a  contract  of
reinsurance,  incurs  to  another insurer, called the ceding insurer, an
obligation the performance  of  which  is  contingent  upon  the  ceding
insurer's incurring liability or loss under its contract or contracts of
insurance, guaranty or suretyship made with third persons.
(9)  "At  last  year-end" means the end of the next preceding calendar
year.
(10) "Authorized insurer" means an insurer authorized as such to do an
insurance business in this state in compliance  with  this  chapter,  by
reason of a license so to do issued and in force pursuant to the laws of
this  state  or  of a corporate charter granted and in force pursuant to
the laws of this state, but not including any  insurer  herein  exempted
from  compliance  with  the  requirement  that it obtain a license to do
business.
(11)  "Board  of  directors"  means  the   body   having   power   and
responsibility  for  management  and  control  of  a corporation and the
advisory committee or similar body having such power in reference  to  a
reciprocal insurer or Lloyds underwriters.
(12)  "Capital",  when used in reference to a stock insurance company,
means the aggregate par value of all classes of shares of capital  stock
issued and outstanding.
(13)  "Ceding  insurer" means the insurer to which an assuming insurer
is obligated.
(14) "Charter" means the basic instrument, by  whatever  name  called,
prescribing the powers, purposes and organization of a corporation.
(15) "Company" means a corporation.
(16)  "Control".  Except  for  the purposes of article fifteen of this
chapter, "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 an institution, whether through the ownership
of voting securities, by contract or otherwise.
(17)  "Department"  means the department of financial services of this
state.
(18) "Deputy" means a deputy superintendent of financial  services  of
this state.
(19)  "Domestic  insurer" means any authorized insurer incorporated or
organized under any law of this state.
(20) "Firm" means a partnership,  limited  or  unlimited,  general  or
special.
(21)  "Foreign  insurer"  means  any insurer incorporated or organized
under the laws of any state, as herein defined, other than this state.
(22) "Fraternal benefit society" has the meaning  ascribed  to  it  by
subsection  (a)  of  section  four  thousand  five  hundred  one of this
chapter.
(23) "Independent insurance agent" has the meaning ascribed to  it  by
section two thousand one hundred one of this chapter.
(24)  "Institution"  means  a  corporation,  a joint-stock company, an
association, a trust, a business partnership, a business  joint  venture
or any similar entity.
(25)  "Insurance  agent" has the meaning ascribed to it by section two
thousand one hundred one of this chapter.
(26) "Insurance broker" has the meaning ascribed to it by section  two
thousand one hundred one of this chapter.
(27)  "Insurance  contract"  has the meaning ascribed to it by section
one thousand one hundred one of this chapter.
(28) "Life insurance company" means any corporation having power to do
either one or both of the  kinds  of  insurance  business  specified  in
paragraphs  one  and  two  of subsection (a) of section one thousand one
hundred thirteen of this chapter.
(29) "Lloyds underwriters" means any aggregation of  individuals,  who
under  a  common  name  engage  in  the business of insurance for profit
through  an  attorney-in-fact   having   authority   to   obligate   the
underwriters  severally, within such limits as may be lawfully specified
in the power of attorney, on contracts of insurance made  or  issued  by
such  attorney-in-fact,  in the name of such aggregation of individuals,
to and with any person or persons insured.
(30) "Minimum surplus" means the minimum amount by which the  admitted
assets  of  an insurer without capital stock must exceed its liabilities
in order to be permitted to do business in this state.
(31) "Minor" or "infant" means a person who has not attained  the  age
of eighteen years.
(32) "Mortgage" includes a deed of trust.
(33)   "Obligations"  includes  bonds,  debentures,  notes  and  other
evidences of indebtedness (whether or not liability for payment  extends
beyond  the security therefor) as well as participation interests in any
of the foregoing.
(34) "Officer" means any person charged  with  active  management  and
control,  in  an  executive  capacity,  of the affairs of a corporation,
including the president, vice-president, secretary, assistant secretary,
treasurer, assistant treasurer, general  counsel,  actuary,  comptroller

and  any  other person appointed or elected by the board of directors to
exercise similar powers, and including the manager, attorney-in-fact, or
other person appointed or elected by the board of directors to  exercise
similar  powers,  of a United States branch of an alien insurer, and the
attorney-in-fact of a reciprocal insurer or Lloyds underwriters, and  in
case  such  manager  or attorney-in-fact is a corporation, including the
officers of such corporation.
(35) "Parent corporation" has  the  meaning  assigned  to  it  in  the
definition of subsidiary.
(36)  "Property/casualty  insurance  company" means any company having
power to write any one or more of the basic kinds of insurance specified
in subsection (a) of section four  thousand  one  hundred  one  of  this
chapter.
(37)  "Reciprocal  insurer" means any aggregation of persons, firms or
corporations or, in the alternative, New York counties,  towns,  cities,
villages,  district  corporations  (as  defined  in  paragraph  three of
section 2.00 of the local finance law), or school districts  and  boards
of  cooperative  educational  services,  called "subscribers" in article
sixty-one of this chapter, who or which under a common  name  engage  in
the  business of inter-insurance or exchanging contracts of insurance on
the reciprocal plan through  an  attorney-in-fact  having  authority  to
obligate  the  subscribers severally, within such limits as may lawfully
be specified in the subscriber's agreement, on  contracts  of  insurance
made with any subscriber as a policyholder through such attorney-in-fact
acting  on  behalf  of  all  other  subscribers.  Such term includes any
reciprocal or inter-insurance exchange, by whatever name known, and  any
reference  thereto  as  an  insurer  shall  be  deemed  to mean any such
aggregation of  inter-insurers  operating  through  an  attorney-in-fact
individually  and  collectively  as  an  insurance  organization for the
benefit of its policyholders.
(38)  "Renewal  license"  means  a  license  which  becomes  effective
immediately  following the expiration of a license previously issued and
in force, and which differs from such previous license only  as  to  the
date of expiration.
(39) "State" means any state of the United States, the commonwealth of
Puerto Rico and the District of Columbia.
(40)   "Subsidiary"  means  an  institution  controlled,  directly  or
indirectly, by another institution or by a  retirement  system.  "Parent
corporation"  means an institution or a retirement system that, directly
or indirectly, controls another institution. For  the  purposes  of  the
definitions in this subsection:
(A)  an  institution  is  conclusively presumed to be controlled by an
institution or retirement system  that,  directly  or  indirectly,  with
power  to  vote,  owns,  controls or holds a majority of the outstanding
voting securities of such institution;
(B) no presumption, either of control or of absence of control, arises
if such ownership, control or holding of voting securities is less  than
a majority but more than five percent;
(C)  absence  of  control  is  presumed  if such ownership, control or
holding of voting securities is five percent or less; and
(D)  in  determining  control,  voting  securities  held  in  separate
accounts  of  an  institution or retirement system shall be deemed to be
owned by the institution or retirement system, but voting securities  in
an  investment advisory account that are not owned by an institution but
are held in an account as to which  the  institution  is  an  investment
adviser   shall  not  be  deemed  to  be  controlled  or  held  by  such
institution.
(41) "Superintendent" means the superintendent of  financial  services
of this state.
(42)  "Surplus  to  policyholders"  means the excess of total admitted
assets over the liabilities of an insurer,  which  is  the  sum  of  all
capital and surplus accounts minus any impairment thereof.
(43)  "United  States". Except for the purposes of article fourteen of
this chapter, when used to signify place, means only the states  of  the
United  States,  the  commonwealth  of  Puerto  Rico and the District of
Columbia.
(44) "United States branch" means, as the  context  may  require,  the
business  unit  through  which  business is transacted within the United
States by an alien insurer,  or  the  assets  and  liabilities  of  such
insurer  within  the  United  States  pertaining to such business or the
management powers pertaining to such business and  to  such  assets  and
liabilities or any combination of these three.
(45)  "Voting  securities"  means  securities  of  any  class  or  any
ownership interest having voting power for the  election  of  directors,
trustees  or  management of an institution, other than securities having
such power only by reason of the happening of a contingency.
(46) "Doing an insurance business" has the meaning ascribed to  it  by
section one thousand one hundred one of this chapter.
(47)  "Commercial  risk  insurance"  means  insurance  not  subject to
section three thousand four hundred twenty-five of this  chapter  issued
or  issued  for delivery in this state, on a risk located in this state,
insuring any of the following contingencies:
(A) loss of or damage to real property;
(B) loss of or damage to personal property;
(C) losses or liabilities arising out of the ownership,  operation  or
use of a motor vehicle;
(D) liabilities of persons acting as officers or directors; or
(E)  other  liabilities,  including  product  liability,  for loss of,
damage to, or injury to persons or property.
(48) "Product liability" means liability of the  insured  for  damages
for  personal injury, death or property damage, where liability is based
upon negligence, implied warranty or strict liability, arising out of  a
design, inspection, testing or manufacturing defect, or any other defect
in  a  product,  or  is  based  upon any failure to warn, or to properly
instruct in the use of a product or for any  liability  for  any  damage
arising  out  of  the handling or use of any product manufactured, sold,
handled or distributed by the insured or work completed by or on  behalf
of the insured.
(49)  "Professional  liability  insurance"  means  insurance  covering
liability arising out of the practice of  any  profession  for  which  a
license  is  required by a governmental authority of this state or, with
respect to treatment of patients, arising out of the operation of a duly
certified hospital.
(50) "Public entity insurance" means commercial risk insurance  issued
to a public entity.
(51) "Public entity" means:
(A) the state of New York;
(B)  a  county, city, town, village or any other political subdivision
or civil department or division of the state;
(C) a school district, board of cooperative  educational  services  or
any   other   governmental  entity  or  combination  or  association  of
governmental entities operating  a  public  school,  college,  community
college or university;
(D)  a  fire district, fire company, volunteer fire department, or any
other entity that contracts  with  a  municipality  or  other  political
subdivision to provide fire protection;
(E) a public library, as defined in section two hundred fifty-three of
the education law, authorized to operate in this state;
(F)  a public corporation, including a municipal corporation, district
corporation or public benefit corporation;
(G) an  improvement  district,  special  district  or  other  district
authorized by the village law, town law, county law or any other law;
(H)  a  public  corporation,  public  authority,  commission,  agency,
municipal or  other  public  housing  authority,  or  project  organized
pursuant to article two of the private housing finance law; or
(I) any other governmental instrumentality or unit in the state of New
York.
(52) "Gap amount" means:
(A)  in  the  case of a lease of personal property, the difference, if
any, between:
(i) the amount  owed  by  the  lessee,  under  the  early  termination
provision  of  the  lease,  as of the date of a total loss of the leased
property caused by its theft or physical damage,  or  the  amount  which
would  have  been  owed  by  the  lessee  had the lessor not waived such
obligations; and
(ii) the sum of: (I) any  unpaid  rental  payments  and  other  unpaid
charges,  arising from the failure of the lessee to fulfill the lessee's
obligations under the lease, that had accrued prior to the date  of  the
loss;  and (II) the actual cash value of the personal property as of the
date of the loss. If the lessee is required under the lease agreement to
maintain a physical damage insurance policy  on  the  personal  property
which  is  the  subject  of  the  lease agreement, and that policy is in
effect on the date of the loss, then "actual cash value" shall have  the
same meaning as under the physical damage insurance policy.
(B)  In the case of a loan or other credit transaction on the purchase
of personal property, the difference, if any, between:
(i) the amount owed by the debtor  under  the  loan  or  other  credit
transaction  as  of  the  date  of a total loss of the personal property
which is the subject of the loan or other credit  transaction  agreement
caused  by  its  theft or physical damage, or the amount that would have
been owed by the debtor had the creditor not waived such obligation; and
(ii) the sum of: (I) any unpaid payments  and  other  unpaid  charges,
arising  from the failure of the debtor to fulfill the obligations under
the loan or other credit transaction agreement, that had  accrued  prior
to  the date of the loss; and (II) the actual cash value of the personal
property as of the date of the loss. If the debtor is required under the
loan or other credit transaction agreement to maintain a physical damage
insurance policy on the personal property which is the  subject  of  the
loan or other credit transaction agreement, and that policy is in effect
on  the  date  of the loss, then "actual cash value" shall have the same
meaning as under the physical damage insurance policy.
(53) "Nonprofit property/casualty insurance company" means an  insurer
organized  pursuant  to section six thousand seven hundred three of this
chapter and that is subject to the provisions of article sixty-seven  of
this chapter.
(54)  "Title insurance agent" shall be deemed to have the same meaning
as paragraph one of subsection (y) of section two thousand  one  hundred
one of this chapter.
(55)  "Medically  fragile  child"  means  an  individual  who is under
twenty-one years of age and has  a  chronic  debilitating  condition  or
conditions, who may or may not be hospitalized or institutionalized, and

meets  one  or  more  of  the following criteria: (1) is technologically
dependent for life  or  health  sustaining  functions;  (2)  requires  a
complex  medication  regimen  or medical interventions to maintain or to
improve  their health status; or (3) is in need of ongoing assessment or
intervention to prevent serious deterioration of their health status  or
medical  complications  that  place their life, health or development at
risk.   Chronic   debilitating   conditions   include   bronchopulmonary
dysplasia,  cerebral  palsy,  congenital  heart  disease,  microcephaly,
pulmonary hypertension, and  muscular  dystrophy.  The  term  "medically
fragile  child" shall also include traumatic brain injury, the nature of
which typically require care in a specialty care  center  for  medically
fragile  children,  even  though  the  child  does  not  have  a chronic
debilitating condition or also meet one of the three conditions of  this
subsection.   Notwithstanding   the   definitions   set  forth  in  this
subsection, any patient  which  has  received  prior  approval  from  an
insurer for admission to a specialty care facility for medically fragile
children  shall  be  considered a medically fragile child at least until
discharge from that facility occurs.
(b) Whenever the terms "include",  "including"  or  terms  of  similar
import  appear  in  this chapter, unless the context requires otherwise,
such terms shall not be construed to imply the exclusion of any  person,
class or thing not specifically included.
(c)  A  reference  in this chapter to any other law or statute of this
state, or of any other  jurisdiction,  means  such  law  or  statute  as
amended  to  the  effective date of this chapter and, unless the context
otherwise requires, as amended thereafter.