New York State Seal
STATE OF NEW YORK
INSURANCE DEPARTMENT
25 BEAVER STREET
NEW YORK, NEW YORK 10004

George E. Pataki
Governor

Howard Mills
Superintendent

The Office of General Counsel issued the following opinion on January 31, 2006 representing the position of the New York State Insurance Department.

Re: Admission to New York as a Financial Guarantee Insurer

Question Presented

May a United States branch of an alien insurer be admitted to New York State as a financial guarantee insurer pursuant to N.Y. Ins. Law § 6902(a) (McKinney’s Supp. 2006)?

Conclusion

No, even though N.Y. Ins. Law § 6902(a) (McKinney’s Supp. 2006) states that a foreign insurer may be licensed in the manner prescribed by N.Y. Ins. Law § 1106 (McKinney 2000), which is entitled "[a]dditional requirements for foreign or alien insurer’s license", a "foreign insurer" is different from an "alien insurer" as those two terms are defined in N.Y. Ins. Law § 107 (McKinney’s Supp. 2006).

Facts

No facts were provided.

Analysis

N.Y. Ins. Law § 6902(a) (McKinney’s Supp. 2006) states in relevant part:

A financial guaranty insurance corporation may be organized and licensed in the manner prescribed in section one thousand two hundred and one of this chapter and a foreign insurer may be licensed in the manner prescribed in section one thousand one hundred six of this chapter, . . .

N.Y. Ins. Law § 1106 (McKinney 2000) states in relevant part: "[b]efore issuing a license to do business, except by way of a renewal license, to any foreign or alien insurer the superintendent . . ." . N.Y. Ins. Law § 1106 (McKinney 2000) goes on to detail the licensing process.

N.Y. Ins. Law § 107(a)(5) (McKinney’s Supp. 2006) states that an "‘[a]lien 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 a foreign insurer."

N.Y. Ins. Law § 107(a)(21) (McKinney’s Supp. 2006) states that a ‘’’[f]oreign insurer’ means any insurer incorporated or organized under the laws of any state, as herein defined, other than this state."

Since an alien insurer is defined differently than a foreign insurer in the Insurance Law, the use of the word foreign insurer in N.Y. Ins. Law § 6902(a) (McKinney’s Supp. 2006) cannot be interpreted to include an alien insurer. Therefore, an alien insurer cannot be licensed pursuant to N.Y. Ins. Law

§ 6902(a) (McKinney’s Supp. 2006).

For further information one may contact Senior Attorney Susan Dess at the New York City Office.