Gambar halaman
PDF
ePub

or

ment obligations, as that term is defined in paragraph one of subsection (a) of section fourteen hundred four of this chapter.

(d) The superintendent shall not promulgate any rules or regulations to limit or otherwise alter the provisions of paragraph two of subsection (a) of section fourteen hundred one of this article or subsection (c) of this section [fourteen hundred nine of this articie]; The superintendent shall not promulgate any rules or regulations that limit' the authority of any insurer to invest in mortgage related securities.

§ 31. Section 1410 of the insurance law is repealed.

§ 32. Subsection (h) of section 1411 of the insurance law, paragraphs 1 and 2 as amended by chapter 805 of the laws of 1984, is amended to read as follows:

(h) Nothing contained in this chapter shall prohibit a life insurance company from making a policy loan upon its policy contract in an amount not exceeding the net reserve value of the policy or contract, or any insurer from:

(1) Acquiring (i) in the case of an insurer making investments under the authority of section one thousand four hundred four of this article, such real property serving as the residence of a non-director officer as may be acquired under the provisions of [subparagraph (G) of] paragraph [seven] five of subsection (a) of section one thousand four hundred four of this article, or (ii) in the case of an insurer making investments under the authority of section one thousand four hundred five of this article, real property serving as the residence of a non-director officer, under the provisions of paragraph four of subsection (a) of section one thousand four hundred five of this article and with the approval of the superintendent in the case of domestic insurers, in connection with the relocation by the insurer of the place of employment of such officer (including any relocation in connection with initial employment), at a purchase price not exceeding the lesser of the value of such property as determined by an independent appraiser for the purpose of such acquisition or one hundred fifty thousand dollars, provided such officer has made reasonable efforts otherwise to dispose of such property for a period of not less than one month immediately prior to such acquisition; or

(2) Making a loan to a non-director officer secured by real property owned by such officer and improved with a one-family dwelling, which is to serve as such officer's residence, provided that' (i) such loan qualifies under [subparagraph (A) of] paragraph (six] four of subsection (a) of section one thousand four hundred four (in the case of an insurer that makes investments under the authority of section one thousand four hundred four), or paragraph three of subsection (a) of section one thousand four hundred five ( in the case of an insurer that makes investments under the authority of section one thousand four hundred five) of this article, (ii) such loan is made in connection with the relocation by the insurer of the place of employment of such officer (including any relocation in connection with initial employment), and (iii) in the case of a domestic insurer, such loan is approved by the superintendent. For the purposes of paragraphs

and two of this subsection, [subparagraph (G) of paragraph seven) paragraphs four and five section (a) of section one thousand four hundred four and paragraphs three and four of subsection (a) of section one thousand four hundred five of this article, real property shall include a condominium unit and stock of a cooperative apartment corporation, if such stock entitles the holder thereof to a proprietary lease of a one-family apartment serving as the residence of the officer.

§ 33. Subsection (a) and paragraph 2 of subsection (b) of section 1413 of the insurance law are amended to read as follows: (a) The superintendent may

refuse a new or renewal license to any foreign insurer, if he finds that its investments do not comply in substance with the investment requirements and limitations imposed by this chapter upon like domestic insurers hereafter organized to do. the same kind kinds of insurance business. For the purposes of this subsection, a foreign insurer's investments shall be deemed to comply in substance with such requirements and limitations if, after disallowing as admitted assets in whole or in part any investments not in compliance therewith, the superintendent finds that such foreign insurer's adjusted surplus tó policyholders is not less than an amount which is reasonable in relation to its outstanding liabilities and adequate to its financial needs, and at least equal to the minimum surplus to policyholders required organization of a domestic insurer' to do the same kind or kinds of insurance business. The superintendent may recognize like

one

or

on

one

an

or

or

securities of a foreign insurer's home state as minimum capital or minimum surplus to policyholder investments in lieu of the securities specified in paragraphs two and four of subsection (b) of section one thousand four hundred two of this article.

(2) [Canadian securities and] Except as provided in paragraph one hereof, for an alien non-life insurer foreign investments that [are substantially, of the same kinds, types and investment grades as those eli gible for investment by domestic insurers authorized to do the same kind or kinds of insurance business] qualify as a reserve investment pursuant to the provisions of paragraph six of subsection (a) of section thousand four hundred four of this article may be included in such alien insurer's trusteed assets in an aggregate amount not exceeding ten percent of the admitted assets of such insurer's United States branch as shown by its last statement on file with the superintendent, or, for alien life insurer, foreign investments that qualify pursuant to the provisions of paragraph seven of subsection (a) of section one thousand four hundred five of this article may be included in such alien insurer's trusteed assets in an aggregate amount not exceeding the applicable quantitative limitations, as set forth in such paragraph seven.

§ 34. Paragraph 1 of subsection (b), paragraphs 1 and 2 of subsection (c) and subsection (e) of section 1414 of the insurance law are amended to read as follows:

(1) Except securities subject to amortization and except as otherwise provided in this chapter, the investments (including any investments in an investment company) of all insurers authorized to do business in this state shall be valued, in the discretion of the superintendent, at their market value, at their appraised value, or at prices determined by him as representing their fair market value.

(1) The shares of an insurance company [registered on a national securities exchange, as provided in the federal Securities Exchange Act of 1934, 15 U.S. Ć.

$$78a-78kk and acquired pursuant to section one thousand four hundred three, section one thousand four hundred four one thousand four hundred five of this article, as the case may be, ] which is not a subsidiary, including for purposes of this subsection any corporation having a majority of its assets invested in one or more insurance companies, shall be valued in accordance with subsection (b) of this section if such shares are registered on a national securities exchange, as provided in the federal Securities Exchange Act of 1934, 15 V.S.C. $$ 78a-78kk.

(2) Except as otherwise provided in section four thousand two hundred forty of this chapter, shares of an insurance company which is a subsidiary and the shares of an insurance company not so registered[, or acquired by an insurer otherwise than pursuant

to
section

thousand our hundred three, one thousand four hundred four or one thousand four hundred five of this article, as the case may be,) shall be valued at the lesser of its market value or book value as shown by its last annual statement or the last report on examination, whichever is more recent. (e) Purchase money mortgages received on dispositions of real property shall be valued in an amount not exceeding ninety percent of the value of such real property as determined by an appraisal made by an appraiser at or about the time of the disposition; provided that purchase

money portgages received dispositions of real property acquired or held pursuant to [subparagraph (C) of] paragraph (seven] five of subsection (a) of section

thousand four hundred four of this article or on dispositions of real property acquired held under section thousand four hundred five of this article in satisfaction of loans, mortgages, liens, judgments, decrees or other debts previously owing to

in the course of its business shall in no event be valued in an amount exceeding its acquisition costs.

35. Section 1601 of the insurance law, paragraph 11 of subsection () as amended by chapter 114 of the laws of 1988, is amended to read as follows:

1601. Authority to invest in subsidiaries; businesses of subsidlaries. (a) [In addition to investments in subsidiaries to the extent of any, permissible under any other provision of this chapter, a) (1) Å domestic insurer authorized to make investments by subsection (c) of section one thousand four hundred three of this chapter may, subject to section one thousand two hundred eighteen of this chapter invest in, otherwise acquire, [under this

article the shares, including voting EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

one

on

one

or

one

such insurer

or or

more

as

as

as

trust certificates, certificates of deposit, interim receipts and other
similar instruments representing such shares, of one or more solvent
corporations engaged or organized to engage exclusively in one
of the following businesses:

(1) acting an insurance agent for its parent or for any of its parent's insurer subsidiaries;

(2) investing, reinvesting or trading in securities or acting as a securities broker or dealer for its own account, that of its parent, any subsidiary of its parent or any affiliate or subsidiary;

(3) rendering management, sales or other related services to any investment company subject to the federal Investment Company Act of 1940, 15 U. S. C. § 80a;

(4) rendering investment advice;

(5) rendering services related to the functions involved in the operation of an insurance business including actuarial, loss prevention, safety engineering, data processing, accounting, claims, appraisal and collection services and also soliciting and engaging in the business of representing self-insurers

pursuant to section fifty of the workers' compensation law;

(6) acting administrator of employee welfare benefit and pension plans for governments, government agencies, corporations or other organizations or groups;

(7) owning and managing assets which the parent could own and manage pursuant to any other section of this chapter, provided that the aggregate investment by the insurer and its subsidiaries acquired pursuant to this paragraph shall not exceed the limitations otherwise applicable to such investments by the parent; (8)

acting administrative agent for a government instrumentality which is performing an insurance function or is responsible for a health or welfare program;

(9) financing of insurance premiums;

(10) any other business activity reasonably ancillary to an insurance business;

(11) owning corporations engaged or organized to engage exclusively in either, or both (i) owning insurers to the extent permitted by sections one thousand two hundred eighteen and one thousand four hundred eight of this chapter, or (ii) one or more of the businesses specified

in paragraphs

through ten hereof or this paragraph, provided, however that] subsidiaries engaged or organized to engage in any business lawfui under the laws of the jurisdiction in which such subsidiaries are organized, provided, however, that no bank, trust company, stock savings and loan association, stock savings bank, credit union (except a credit union organized for the benefit of the parent company's employees) ganized under the laws of the United States or any state, territory, or possession thereof (except a company organized to engage

in fiduciary activities incidental to or reasonably ancillary to an insurance business that were permissible on May first, nineteen hundred eighty-three under the former insurance law in effect prior to this chapter), investment company chartered by the banking board and organized pursuant to article twelve of the banking law, sales finance company licensed under article eleven-B of the bank ing law or any other company that engages in the business of financing retail installment contracts, retail installment obligations or retail installment credit agreements as defined in article eleven-B of the banking law to the extent that, if conducted in this state, would require licensing under such article eleven-B, or any other company which accepts deposits of money which may be insurable by any federal or state bank insuring agency,,, may be organized, acquired or held, directly or indirectly, as a subsidiary under this article.

the provisions of paragraph one of this subsection, no assessment corporation, as defined in subsection (b) of section six thousand six hundred two of this chapter, shall invest in or otherwise acquire, directly or indirectly, an insurance company if such investment or acquisition results in the control of such insurance company by the assessment corporation.

(b) [Subsection (a) hereof shall not permit any subsidiary of the type described in paragraph one of subsection (a) hereof, organized quired pursuant to this article, to engage in any activity which is otherwise contrary to law] Except as prohibited by paragraph two of subsection (a) of this section, subsidiaries engaged or organized to engage exclusively in owning or investing in insurers, directly or indirectly, are subject to the limitations set forth in sections one thousand two hundred eighteen and one thousand four hundred eight of this chapter.

one

or

or

ac

[ocr errors]

one

one

§ 36. Subsection (b) of section 1604 of the insurance law is amended to read as follows:

(b) Except for section one thousand five hundred six of this chapter and paragraph five of subsection (a) hereof, nothing in this article shall prohibit a domestic insurance company or any of its subsidiaries from selling or otherwise disposing of

all of the voting shares of another corporation owned by the insurer or subsidiary over a period of three years or such longer period as may be permitted by the superintendent or from retaining during that period the ownership of a percentage of the outstanding, voting shares of the other corporation which is less than the applicable percentage prescribed by section one thousand six hundred two of this article.

§ 37. Paragraph 2 of subsection (a) of section 1605 of the insurance law is amended to read as follows:

(2) any corporation whose voting shares are held by a domestic insurance company pursuant to section one thousand six hundred two, thousand six hundred three or one thousand six hundred four of this article shall be deemed the subsidiary of the insurer, provided that for purposes of section one thousand six hundred six of this article, a corporation [described in paragraph two of subsection (a) of section thousand six hundred one of this article] shall be deemed the insurer's subsidiary only so long as the insurer owns a majority of the total voting shares or retains direct or indirect control of such subsidiary.

§ 38. Subsection (d) of section 1608 of the insurance law is amended to read as follows:

(d) The superintendent may promulgate regulations relating to such subsidiaries, their management and their relationships and transactions with their parent insurance companies and their affiliates to the extent that the same may affect the operations, management or financial condition of domestic insurers. Subsidiaries that are persons within a holding company system, as such terms are defined in article fifteen of this chapter, shall be subject to the provisions of such article.

$ 39. Section 1609 of the insurance law is amended to read as follows: § 1609. Prohibitions on investments of subsidiaries. No subsidiary acquired by a domestic insurance company pursuant to this article shall make any investment prohibited by [paragraph five of] subsection (a) of section one thousand four hundred seven of this chapter [(except in a subsidiary acquired pursuant to this article) or by paragraph six, seven or eight of such subsection of such section] except that an alien subşidiary may make [(i)] investments in excess of the limitations described in paragraph seven of such subsection [of such section

and (11) investments described in paragraphs five and six of such subsection of such section] if found by the superintendent to be reasonably sary to protect the interests of the parent corporation or those of its alien subsidiary and not prejudicial to the interests of the people of this state.

$ 40. Section 1610 of the insurance law is amended to read as follows: § 1610. Authority to conduct certain business directly instead of through subsidiary. (a) A domestic insurance company subject to this article may, provided that it maintains books and records which separately account for such business, engage directly in any business referred to in paragraphs [four, five, eight and ten] one, two and three of this subsection ((a) of section one thousand six hundred one of this article] to the extent any such business[: (i)] is necessarily or properly incidental to the insurance business the insurer is authorized to do in this states, or]: [(ii)] (1) rendering investment advice; 72) rendering services related to the functions involved in the operation of an insurance business including actuarial, loss

loss prevention, safety engineering, data processing, accounting, claims, appraisals, collections and soliciting and engaging in the business of representing self-insurers pursuant to

section fifty of the workers' compensation law; and (3) acting as administrative agent for a government instrumentality which is performing an insurance function or is responsible for a health or welfare program. (b) A domestic insurance company subject to this article may, provided that it maintains books and records which separately account for such business, engage directly in any other business activity reasonably anEXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

necesor

ac

as

one

cillary to an insurance business to the extent any such business is approved by the superintendent and subject to any limitations he may prescribe to protect the interests of the policyholders of the insurer after taking into account:

(1) the effect of such business on the insurer's existing insurance business and its surplus,

(2) the proposed allocation of the estimated cost of such business, (3) the risks inherent in such business, and

(4) the relative advantages to the insurer and its policyholders of conducting such business directly instead of through a subsidiary.

§ 41. The insurance law is amended by adding a new section 1611 to read as follows:

§ 1611. Aggregate limitations. (a) The aggregate investment by the insurer and its subsidiaries in asset's which are owned, managed quired pursuant to this article shall not exceed the limitations of this chapter otherwise applicable to such investments if held directly by the insurer.

(b). The aggregate amount of the insurer's investment in subsidiaries shall not exceed fifteen percent of the insurer's invested

assets, defined in subsection (a) of section one thousand four hundred one of this chapter and as shown by its last statement on file with the superintendent, but excluded from this limitation shall be any investment in & subsidiary which is an insurance company and any investment in a subsidiary of the type described in paragraph nine of subsection (a) of section one thousand four hundred four or subparagraph (B) of paragraph four of subsection (a) of section one thousand four hundred seven of this chapter.

& 42. The insurance law is amended by adding a new section 4526 to read as follows:

§ 4526. Investments of fraternal benefit societies. (a) For purposes of investments made pursuant to the provisions of section

thousand four hundred four of this chapter, the term "institution" shall only include a corporation, a joint-stock association, and a business trust and the

term "obligations shall only include bonds, debentures, notes, or other evidences of indebtedness,

(b) Investments in loans secured by real property and investments in real property made pursuant to the provisions of paragraphs four and five of subsection (a) of such section shall be permitted only to the extent that such investments are acquired held directly by such society.

(c) Foreign investments made pursuant to the provisions of paragraph six of such subsection shall only consist of the following:

(1) Investinents in Canada which are substantially of the same kinds, classes and investment grades as those eligible for investment under other provisions of such subsection. The aggregate amount of such investments held at any time shall not exceed the greater of ten percent of the society's admitted assets as shown by its last statement on file with the superintendent or the amount, if any, permitted

pursuant

to paragraph two hereof.

(2) Investments in a foreign country or in a possession of the United States if the society is authorized to do business therein, or if the society has outstanding insurance, annuity or reinsurance contracts on lives or risks resident or located therein; provided such

investments åre substantially of the same kinds, classes and investment grades as those eligible for investment under other provisions of such subsection. The aggregate amount of such investments and of cash in the currency of such country or possession at any time held shall not, except as permitted by paragraph

one hereof, exceed the amount which such society is required by law to invest in such country or possession or one and onehalf times the amount of its reserves and other obligations under such contracts, whichever is greater.

(3) Investments in any foreign country, in addition to investments permitted under paragraphs one and two hereof, which are substantially of the same kinds, classes and investment grades as those eligible for investment under other provisions of such subsection. The aggregate amount of such investments made pursuant to this paragraph shall not exceed one percent of the society's admitted assets as shown by its last statement on file with the superintendent.

(d) Investments in equity interests made pursuant to paragraph eight of such subsection shall be limited to investments in common shares and shall not include investments in partnership interests or other equity interests.

or

[ocr errors]
« SebelumnyaLanjutkan »