11 CRR-NY 80-1.5NY-CRR
11 CRR-NY 80-1.5
11 CRR-NY 80-1.5
80-1.5 Transactions.
(a) Requests for approval of transactions pursuant to Insurance Law section 1505(c), and notices of proposed transactions pursuant to Insurance Law section 1505(d), shall be accompanied by descriptions of the essential features of such transactions that are reasonably adequate to permit proper evaluation thereof by the superintendent.
(b) Such descriptions shall in all cases include at least the following:
(1) the nature and purpose of the transaction;
(2) the nature and amounts of any payments or transfers of assets between the parties;
(3) the identities of all parties to such transaction and whether any officers or directors of a party are pecuniarily interested therein; and
(4) copies of any contracts, agreements or memoranda of understanding between the parties relating to the transaction, provided, however, that the domestic controlled insurer need not submit a reinsurance contract, agreement or memorandum unless requested by the superintendent where the reinsurance premium or a change in the domestic controlled insurer’s liabilities, or the projected reinsurance premium or a change in the domestic controlled insurer’s liabilities in any of the next three years, is less than five percent of surplus to policyholders at last year-end and the domestic controlled insurer is:
(i) licensed to write in this state any one or more of the basic kinds of insurance specified in Insurance Law section 4101(a);
(ii) a corporation licensed to transact the business of title insurance under Insurance Law article 64;
(iii) a company licensed to transact the business of mortgage guaranty insurance under Insurance Law article 65; or
(iv) a corporation licensed to transact the business of financial guaranty insurance under Insurance Law article 69.
(c) For the purposes of Insurance Law section 1505(d)(4), the following transactions between a domestic controlled insurer and any person in its holding company system are deemed to be material transactions:
(1) any sale, purchase, exchange, loan or extension of credit, or investment involving:
(i) less then three percent of a life insurance company’s admitted assets at last year-end that, when added to the respective aggregate of any such other sales, purchases, exchanges, unpaid loans, unpaid extensions of credit, or investments made during the preceding 12 months, causes the aggregate to exceed three percent of the company’s admitted assets at last year-end;
(ii) with respect to an accident and health insurance company or a corporation subject to Insurance Law article 43, less than the lesser of three percent of the company or corporation’s admitted assets or 25 percent of capital and surplus at last year-end, that when added to the respective aggregate of any such other sales, purchases, exchanges, unpaid loans, unpaid extensions of credit, or investments made during the preceding 12 months, causes the aggregate to equal or exceed the lesser of three percent of the company or corporation’s admitted assets or 25 percent of capital and surplus at last year-end; or
(iii) with respect to an insurer other than as specified in subparagraphs (i) and (ii) of this paragraph, less than the lesser of three percent of the insurer’s admitted assets or 25 percent of surplus to policyholders at last year-end, that when added to the respective aggregate of any such other sales, purchases, exchanges, unpaid loans, unpaid extensions of credit, or investments made during the preceding 12 months, causes the aggregate to equal or exceed the lesser of three percent of the insurer’s admitted assets or 25 percent of surplus to policyholders at last year-end;
(2) any lease of real or personal property that does not provide for the rendering of services on a regular and systematic basis and where the aggregate payments to be made, including any renewal or extension thereof, exceeds:
(i) one percent of the insurer's admitted assets at last year-end, if the insurer is subject to article 42 of the Insurance Law; or
(ii) two percent of the insurer's admitted assets at last year-end, if the insurer is not subject to article 42 of the Insurance Law; and
(3) any management agreements, service contracts, tax allocation agreements, guarantees, or cost-sharing arrangements.
(d) Any series of transactions designed to evade the provisions of subdivision (c) of this section shall be deemed a material transaction and subject to the filing requirements of Insurance Law section 1505(d)(4).
11 CRR-NY 80-1.5
Current through June 30, 2021
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IMPORTANT NOTE REGARDING CONTENT CURRENCY: The "Current through" date indicated immediately above is the date of the most recently produced official NYCRR supplement covering this rule section. For later updates to this section, if any, please: consult editions of the NYS Register published after this date; or contact the NYS Department of State Division of Administrative Rules at [email protected]. See Help for additional information on the currency of this unofficial version of NYS Rules.