The Office of General Counsel issued the following opinion on March 31, 2003, representing the position of the New York State Insurance Department.
Re: Purchase of a Life Insurance Policy outside of New York from an Authorized Insurer
May a corporation that is headquartered in New York purchase a life insurance policy from an authorized insurer that does not offer the policy in New York by setting up a trust in Delaware and purchasing the policy through the trust?
Yes. However, if the insurer is a domestic insurer, it must file the policy form with the Superintendent.
A bank that is headquartered in New York and incorporated in another state, wishes to purchase individual life insurance policies from an insurer that is authorized in New York but does not offer this product in New York. The bank proposes establishing a trust in Delaware and purchasing the policies through such trust. All transactions pertaining to these policies will be done in Delaware.
There is nothing in the New York Insurance Law or the Regulations promulgated pursuant thereto that would bar this transaction. However, if the insurer is a domestic insurer, which is defined in N.Y. Ins. Law § 107(19) (McKinney Supp. 2003) as: "any authorized insurer incorporated or organized under any law of this state", it will be required to comply with N.Y. Ins. Law § 3201(b)(2) (McKinney Supp. 2003). That section provides that "(n)o policy form shall be issued by a domestic insurer for delivery outside this state unless it has been filed with the superintendent."
For further information you may contact Supervising Attorney Joan Siegel at the New York City Office.