Under Section 1502(a) of the New York Insurance Law certain authorized
insurers including alien insurers transacting business in this state through United States
branches are not considered to be "holding companies" or "controlled
insurers" as those terms are defined in Article 15 of the New York Insurance Law and
accordingly are exempt from the provisions of Article 15 of the New York Insurance Law.
A domestic insurer that is exempt from the
provisions of Article 15 of the New York Insurance Law includes every domestic mutual
insurer and its insurance subsidiaries as well as any domestic insurer owned by an
authorized insurer deemed to be the ultimate parent. An authorized insurer is exempt if it
is deemed to be the ultimate parent. However, such exempt insurer may in fact be subject
to the holding company reporting or registration requirements of other states.
Section 308 of the Insurance Law authorizes the
Superintendent to require an authorized insurer to submit special reports in relation to
its transactions or condition or any matter connected therewith. Therefore, to enhance the
Superintendent’s understanding of the holding company structure of authorized
insurers operating in this State, and to assess the current or potential risk to insurance
subsidiaries, the Insurance Department is requiring the submission of the following
reports:
- Every domestic insurer that is exempt from the provisions of Article
15 of the New York Insurance Law is hereby directed, pursuant to Section 308 of the New
York Insurance Law, to furnish this Department by September 1, 2001 a copy of the latest
Insurance Holding Company System Annual Registration Statement (NAIC Form B) filed by it
or its parent authorized insurer in another state. If the insurer is required to file such
annual registration statement in more than one state, only one such filing need be
furnished. If the insurer is not required to file a registration statement in another
state, the insurer should file with the Insurance Department the information that is
contained in the NAIC Form B.
- Until further notice, every domestic insurer that is exempt from the
provisions of Article 15 of the New York Insurance Law is hereby directed, pursuant to
Section 308 of the New York Insurance Law, to furnish this Department with future copies
of such filings referenced in (1) above, and any amendments thereto, at the same time that
they are filed with any other state. If the insurer is not required to file Form B in
another state, the information contained in NAIC Form B must be filed with the Department
within 120 days following the close of the ultimate holding company’s fiscal year.
- Beginning September 1, 2001, every authorized insurer that is exempt
from the provisions of Article 15 of the New York Insurance Law is hereby directed,
pursuant to Section 308 of the New York Insurance Law, to furnish this Department by
e-mail with a report on the attached Form CL 17 (2001),
at least 30 days in advance of taking any activity resulting in acquiring control, as
defined by Section 1501(a)(2) of the New York Insurance Law, of any domestic insurer.
- Beginning September 1, 2001, every authorized domestic insurer that
is exempt from the provisions of Article 15 of the New York Insurance Law is hereby
directed, pursuant to Section 308 of the New York Insurance Law, to furnish this
Department by e-mail with a report on the attached
Form CL 17 (2001), at least 30 days in advance of entering into any of the
following transactions: (An "affiliate" means a person that directly, or
indirectly through one or more intermediaries, controls, or is controlled by, or is under
common control with the insurer.)
- Sales, purchases, exchanges, loans, extensions of credit, or
investments with an affiliate, provided the transactions are equal to or exceed:
- With respect to nonlife insurers, the lesser of three percent (3%) of
the insurer’s admitted assets or twenty-five percent (25%) of surplus to
policyholders or for an accident & health insurer or an Article 43 corporation
hereinafter referred to as "health insurers," capital and surplus, as of the 31st
day of December next preceding; or
- With respect to life insurers, three percent (3%) of the
insurer’s admitted assets as of the 31st day of December next preceding.
- Loans or extensions of credit to any person who is not an affiliate,
where the insurer makes loans or extensions of credit with the agreement or understanding
that the proceeds of such transactions, in whole or in substantial part, are to be used to
make loans or extensions of credit to, to purchase assets of, or to make investments in,
any affiliate of the insurer making the loans or extensions of credit provided the
transactions are equal to or exceed:
- With respect to nonlife insurers, the lesser of three percent (3%) of
the insurer’s admitted assets or twenty-five percent (25%) of surplus to
policyholders or for health insurers, capital and surplus, as of the 31st day of December
next preceding; or
- With respect to life insurers, three percent (3%) of the
insurer’s admitted assets, as of the 31st day of December next preceding.
Reinsurance agreements or modifications thereto with an affiliate
that have not otherwise been submitted to the Department, in which the reinsurance
premium, or a change in the insurer’s liabilities equals or exceeds five percent (5%)
of the insurer’s surplus to policyholders or for health insurers, capital and
surplus, as of the 31st day of December next preceding. This includes those
agreements which may require as consideration the transfer of assets from an insurer to a
non-affiliate, if an agreement or understanding exists between the insurer and
non-affiliate that any portion of the assets will be transferred to one or more affiliates
of the insurer.
Entering into any management agreements, service contracts, contracts
of guarantee or surety and all cost-sharing arrangements.
All contracts of guarantee or surety involving an affiliate,
provided, however, that a contract of guarantee or surety that is quantifiable as to
amount only if it exceeds the lesser of three percent (3%) of the insurer’s admitted
assets or twenty-five percent (25%) of surplus to policyholders, or, for health insurers,
capital and surplus, as of the 31st day of December next preceding. All
contracts of guarantee or surety that are not quantifiable as to amount are to be
reported.
With respect to life insurers, direct or indirect acquisitions or
investments in a person that controls the insurer or in an affiliate of the insurer in an
amount which, together with its present holdings in such investments, exceeds two and
one-half percent (2.5%) of the insurer’s surplus to policyholders as of the 31st
day of the December next preceding. Direct or indirect acquisitions or investments in
subsidiaries acquired pursuant to Article 17 of the New York Insurance law, or
subsidiaries that are exempt under the provisions of Section 1704 of the New York
Insurance Law do not have to be reported.
Confidential treatment based upon trade secret or
substantial injury to the competitive position of the insurer pursuant to the Freedom of
Information Law will be accorded to all reports submitted pursuant to this circular
letter. In this instance, the insurer shall not need to submit a claim for exemption under
the Freedom of Information Law.
The reports required pursuant to items 1, 2, 3 and 4
of this circular letter and any questions relating to the content of this Circular Letter
should be directed to:
For Life Companies
Mr. Ronald P. Gage
Supervising Examiner -- Life Bureau
New York State Insurance Department
25 Beaver Street
New York, New York 10004
Phone: (212) 480-5037
E-mail: rgage@ins.state.ny.us
For Property/Casualty Companies
JoAnne Brazenor
Supervising Examiner--Property Bureau
New York State Insurance Department
25 Beaver Street
New York, New York 10004
Phone: (212) 480-5076
E-Mail: jbrazeno@ins.state.ny.us
For Health Insurance Companies
Charles Lovejoy
Principal Examiner --Health Bureau
New York State Insurance Department
25 Beaver Street
New York, New York 10004
Phone: (212) 480-5045
E-Mail: clovejoy@ins.state.ny.us
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