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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.

 

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