2023 New York Laws › ISC - Insurance › Article 16 - Subsidiaries of Domestic Property/casualty Insurance Companies and Certain Other Entities › 1604 - Registration.

§  1604.  Registration.  (a)  An  authorized  domestic  insurer  shall
register with the superintendent within thirty days of becoming  subject
to  registration  and  shall  amend  the registration within thirty days
following any  material  change  to  the  information  provided  in  the
registration.  The  registration shall be in such form and shall contain
such matters as the superintendent prescribes.  The  superintendent  may
grant reasonable extensions of the time to register.
(b)(1)  An  authorized domestic insurer, other than a domestic insurer
required to register as a controlled insurer  pursuant  to  section  one
thousand  five  hundred  three  of  this  chapter,  shall adopt a formal
enterprise risk management function and shall file  an  enterprise  risk
report  with  the  superintendent  by  April thirtieth of each year. The
report shall, to  the  best  of  the  insurer's  knowledge  and  belief,
identify  the  material  risks  within  any  subsidiary  that could pose
enterprise risk to the insurer.
(2) For the purposes of this  article,  "enterprise  risk"  means  any
activity, circumstance, event, or series of events involving one or more
subsidiaries  of an insurer that, if not remedied promptly, is likely to
have a material adverse effect upon the financial condition or liquidity
of the insurer,  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-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.
(c) (1) An authorized domestic insurer, other than a domestic  insurer
required  to  register  as  a controlled insurer pursuant to section one
thousand five hundred  three  of  this  chapter,  shall  file  with  the
superintendent  an annual group capital calculation by June thirtieth of
each year when this state is the lead state as determined in  accordance
with  the  procedures  within the financial analysis handbook adopted by
the NAIC, as amended from time to time.
(2) When the lead state is not  this  state,  an  authorized  domestic
insurer  shall  file  with  the  superintendent the annual group capital
calculation as adopted by its lead  state  if  the  authorized  domestic
insurer  has  filed  the  annual group capital calculation with the lead
state but the lead state is not willing or  able  to  share  the  annual
group capital calculation with the superintendent.
(3) When this state is the lead state, the authorized domestic insurer
shall  complete  the annual group capital calculation in accordance with
the  group  capital  calculation  instructions,  which  may  permit  the
superintendent  to  allow  a subsidiary to file the annual group capital
calculation.
(4) When this state is the lead state, an authorized domestic  insurer
shall be exempt from filing an annual group capital calculation if it:
(A)  has  only one insurer subsidiary that only writes business and is
only licensed in its domestic state and assumes  no  business  from  any
other insurer;
(B)  is  required  to perform a group capital calculation specified by
the United States Federal Reserve  Board,  except  that  the  authorized
domestic  insurer shall not be exempt if the superintendent requests the
group capital calculation from the United States Federal  Reserve  Board
under  the  terms  of  information  sharing agreements in effect and the
Federal  Reserve  Board  cannot   share   the   calculation   with   the
superintendent;
(C)  has  a  non-United  States  group-wide supervisor that is located
within a reciprocal jurisdiction,  as  described  in  part  one  hundred
twenty-five  of title eleven of the official compilation of codes, rules

and regulations of this state, that recognizes the United  States  state
regulatory approach to group supervision and group capital; or
(D)(i)  provides information to the superintendent, either directly or
indirectly through the group-wide supervisor, who  has  determined  such
information  is  satisfactory to allow the superintendent to comply with
the NAIC group supervision approach, as detailed in the  NAIC  financial
analysis handbook; and
(ii)  has  a  non-United States group-wide supervisor that is not in a
reciprocal jurisdiction and that recognizes and accepts, as specified by
the superintendent in a regulation, the group capital calculation as the
world-wide group capital  assessment  for  United  States  systems  that
operate in that jurisdiction.
(5)  Notwithstanding  subparagraphs  (C)  and (D) of paragraph four of
this subsection, when this state is the lead state,  the  superintendent
shall require the group capital calculation for United States operations
of  any  non-United  States-based  system  where,  after  any  necessary
consultation  with  other  supervisors  or  officials,  it   is   deemed
appropriate  by the superintendent for prudential oversight and solvency
monitoring purposes or for ensuring the competitiveness of the insurance
marketplace.
(6) Notwithstanding the  exemptions  from  filing  the  group  capital
calculation  set  forth  in paragraph four of this subsection, when this
state is the lead state, the superintendent has the discretion to exempt
an authorized domestic insurer  from  filing  an  annual  group  capital
calculation  or accept a limited annual group capital calculation filing
or report in accordance with criteria as specified by the superintendent
in a regulation.
(7)  When  this  state  is  the  lead  state,  if  the  superintendent
determines  that  an  authorized domestic insurer no longer meets one or
more of the requirements for an exemption from filing the group  capital
calculation under this subsection, the authorized domestic insurer shall
file the group capital calculation at the next annual filing date unless
given  an  extension  by  the superintendent based on reasonable grounds
shown.
(d)(1) An authorized domestic insurer, other than a  domestic  insurer
required  to  register  as  a controlled insurer pursuant to section one
thousand five hundred three of this chapter, that has a subsidiary  that
is  scoped  into the NAIC liquidity stress test framework shall file the
results of a specific year's  annual  liquidity  stress  test  with  the
superintendent  when  this  state is the lead state as determined by the
procedures within the financial analysis handbook adopted  by  the  NAIC
and as amended from time to time.
(2)  When  the  lead  state  is not this state, an authorized domestic
insurer shall file with the superintendent the  results  of  a  specific
year's  liquidity  stress  test  as  adopted  by  its  lead state if the
authorized domestic insurer has filed the results with  the  lead  state
but  the lead state is not willing or able to share the results with the
superintendent.
(3) When this state is the lead state, the performance of, and  filing
of  the  results  from,  a  specific  year's liquidity stress test shall
comply with the NAIC liquidity stress test framework.
(4) When this state  is  the  lead  state,  any  change  to  the  NAIC
liquidity  stress test framework or to the data year for which the scope
criteria are to be measured shall be effective on January first  of  the
year following the calendar year when such changes are adopted.
(5) When this state is the lead state, an insurer meeting at least one
threshold of the scope criteria shall be considered scoped into the NAIC
liquidity  stress  test framework for the specified data year unless the

superintendent, in consultation with the NAIC financial  stability  task
force, or its successor, determines the insurer shall not be scoped into
the NAIC liquidity stress test framework for that data year.
(6)  When  this  state  is  the  lead  state, an insurer that does not
trigger at least one threshold of the scope criteria shall be considered
scoped out of the NAIC liquidity stress test framework for the specified
data year, unless the superintendent,  in  consultation  with  the  NAIC
financial stability task force, or its successor, determines the insurer
shall  be  scoped into the NAIC liquidity stress test framework for that
data year.
(7) The  superintendent,  in  consultation  with  the  NAIC  financial
stability  task  force,  or  its  successor, shall assess the concern of
wishing to avoid having insurers scoped in and out of the NAIC liquidity
stress test framework on a frequent basis as part of  the  determination
for an insurer.
(e)  No  insurer,  insurance  producer,  or  other  person shall make,
publish, disseminate, circulate, issue, or place before the  public,  or
cause  directly  or  indirectly  to  be  made,  published, disseminated,
circulated, issued, or placed before the public, in  this  state,  in  a
newspaper,  magazine,  or other publication, or in the form of a notice,
circular, pamphlet, letter, or poster, or over any radio  or  television
station  or  any  electronic  means  of  communication  available to the
public, or in any  other  way  as  an  advertisement,  announcement,  or
statement  containing  a  representation or statement with regard to the
group capital calculation, group capital ratio,  liquidity  stress  test
results,  or  supporting  disclosures  for  such  test, or any component
derived in the calculation thereof, of any authorized  domestic  insurer
or  subsidiary  thereof, provided, however, that an insurer may publish,
with the superintendent's prior approval,  announcements  in  a  written
publication  to rebut any materially false statement with respect to the
foregoing if the insurer is able to demonstrate  to  the  superintendent
with   substantial   proof   the   falsity  of  such  statement  or  the
inappropriateness, as the case may be, and if the sole  purpose  of  the
announcement is to rebut the materially false statement.
(f) For the purpose of this section:
(1)  "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 domestic insurer or subsidiary.
(2) "NAIC" means the National Association of Insurance Commissioners.
(3)  "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 publication 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 domestic insurer or subsidiary.
(4)  "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.