Title 24, Insurance

§431:6-315 Banks, savings and loan associations, credit unions, and financial services loan companies. (a) An insurer may invest or deposit any of its funds in checking or savings accounts, under separate certificates of deposit, or in any other form in solvent banks or trust com…

§431:6-316 Insurance stocks. (a) An insurer other than a life insurer may invest a portion of its surplus funds in an aggregate amount not exceeding fifty per cent of its surplus over its capital stock and other liabilities, or thirty-five per cent of its capital funds, whichever…

§431:6-317 Common stocks. (a) To meet the requirements under section 431:6-201, an insurer may invest any of its funds in common shares of stock that are filed with the SVO or are considered "filing exempt" by the Purposes and Procedures Manual of the SVO, or its successor public…

§431:6-318 Collateral loans. An insurer is permitted to loan its funds upon the pledge of securities or evidences of debt eligible for investment under this article. As at date made, no such loan shall exceed in amount ninety per cent of the fair value of the collateral pledged, …

§431:6-319 Miscellaneous investments. (a) An insurer may loan or invest its funds in an aggregate amount not exceeding the lesser of the following sums: Five per cent of its assets or fifty per cent of its surplus over its capital and other liabilities, or, if a mutual or recipro…

§431:6-320 Special consent investments. Upon approval of the commissioner and in compliance with section 431:6-104, an insurer may make any investment or kind of investment or exchange of assets otherwise prohibited or not eligible under this article. The commissioner's order of …

§431:6-321 Hedging transactions. (a) A domestic insurer may effect or maintain bona fide hedging transactions pertaining to securities otherwise eligible for investment under this part including, but not limited to: (b) The contracts, options, calls, puts, and rights shall be tra…

§431:6-322 Common trust funds; mutual funds; and exchange traded funds. (a) For purposes of this section: "Common trust funds" means a fund maintained by a bank exclusively for the collective investment and reinvestment of moneys contributed by the bank in its capacity as a trust…

§431:6-323 Separate accounts. (a) A life insurer, after adoption of a resolution by its board of directors and certification thereof to the commissioner, may allocate to one or more separate accounts, in accordance with the terms of a written agreement or a contract on a variable…

§431:6-324 Subsidiaries. (a) Any domestic insurer, either by itself or in cooperation with one or more persons, may organize or acquire one or more subsidiaries subject to the limitations of this section. (b) In addition to investments in common stock, preferred stock, debt oblig…

PART IV. PROHIBITED INVESTMENTS AND LIMITATIONS §431:6-401 Prohibited investments. In addition to investments excluded under other provisions of this article, an insurer shall not, except with the commissioner's approval in advance, invest in or loan its funds upon the security o…

§431:6-402 Securities underwriting; agreements to withhold or to repurchase. No insurer shall:

§431:6-403 Disposal of ineligible property and securities. (a) Any personal property or securities lawfully acquired by an insurer, which it could not otherwise have invested in or loaned its funds upon at the time of the acquisition, shall be disposed of by the insurer within th…

§431:6-404 Authorization of investments. No investment, loan, sale, or exchange, except a loan upon a life insurance policy, shall be made by any domestic insurer unless authorized or approved by its board of directors or by a committee charged by the board of directors, or the b…

PART V. INVESTMENT OF FOREIGN AND ALIEN INSURERS §431:6-501 Investments of foreign, alien insurers. The investments of a foreign or alien insurer shall be as permitted by the laws of its domicile, but shall be of a quality substantially as high as those required by this article f…

PART VI. INVESTMENT POOLS §431:6-601 Insurer investment pools. (a) For purposes of this section: "Business entity" means a corporation, limited liability company, association, partnership, joint stock company, joint venture, mutual fund trust, or other similar form of business or…

§431:6-602 Securities lending, repurchase, reverse repurchase, and dollar roll; investment pools. (a) For purposes of this section, "business entity" includes a sole proprietorship, corporation, limited liability company, association, partnership, joint stock company, joint ventu…

ARTICLE 7 FEES, TAXES AND DEPOSITS PART I. FEES §431:7-101 Fees. (a) The commissioner shall collect, in advance, the following fees: (b) The fees for services of the department of commerce and consumer affairs subsequent to the issuance of a certificate of authority, license, reg…

PART II. TAXES §431:7-201 Annual and monthly tax statements. (a) Each authorized insurer shall electronically file with the commissioner annually, on or before March 1 in each year, a statement signed by a duly authorized person on its behalf, setting forth the total business tra…

§431:7-202 Taxation. (a) Each authorized insurer, except with respect to all life insurance contracts, ocean marine insurance contracts, and real property title insurance contracts, shall pay to the director of finance through the commissioner a tax of 4.265 per cent on the gross…

[§431:7-202.5] Additions to taxes for noncompliance or evasion; interest on underpayments and overpayments. The provisions of section 231-39 shall apply to taxes under this article. [L 1992, c 236, §2]

§431:7-203 Administrative refunds. (a) If any person has paid to the commissioner any tax, fee, or other charge in error or in excess of that which the person is lawfully obligated to pay under this code, the commissioner, upon written request made by the person to the commission…

§431:7-204 In lieu provision. As to insurers, the taxes and fees imposed by section 431:7-201 to section 431:7-204, and the fees imposed by this code, when paid shall be in settlement of and in lieu of all demands for taxes, licenses, or fees of every character imposed by the law…

§431:7-204.5 Appeals. Notwithstanding section 431:2-308, any person aggrieved by any assessment of the tax for any month or any year may appeal from the assessment in the manner and within the time and in all other respects as provided in section 235-114. [L 1992, c 236, §3; am L…

§431:7-204.6 Limitation period for assessment, levy, collection, or refund. (a) The amount of insurance taxes imposed by this chapter shall be assessed or levied within three years after the annual return was filed, or within three years of the due date prescribed for the filing …

§431:7-205 Reports to department of taxation. The commissioner shall promptly report to the department of taxation all amounts of taxes collected under section 431:7-201 to section 431:7-204 and section 431:8-315 and all amounts of refunds of such taxes made under section 431:7-2…

§431:7-206 Domestic company credit for retaliatory taxes paid other states. If by the laws of any state other than this State, or by the action of any public official of another state, any insurer or company, as defined in section 431:1-202, organized or domiciled in this State, …

§431:7-207 Tax credit to facilitate regulatory oversight. (a) Each authorized insurer that meets the requirements of subsection (b) may claim a tax credit under this section against the tax imposed by section 431:7-202(a) or (b) for the taxable year for which the credit is proper…

[§431:7-208] Low-income housing, insurance premium tax credit. The low-income housing tax credit provided under section 235-110.8 shall be operative for this chapter and may be claimed against the tax imposed under section 431:7-202. [L 1999, c 24, §1]

§431:7-209 High technology business investment tax credit. The high technology business investment tax credit provided under section 235-110.9 shall be operative for this chapter on July 1, 1999. [L 1999, c 178, §27; am L 2009, c 178, §7; am L 2017, c 3, §3]

PART III. DEPOSITS §431:7-301 Deposits of insurers. (a) The director of finance shall accept, when made through the commissioner, deposits of securities or funds by insurers as follows: (b) This part shall apply to the deposits listed in this section unless expressly inconsistent…

§431:7-302 Purpose of deposit. Each deposit shall be held by the director of finance in trust for the protection of all policyholders, obligees, or creditors in the United States of the insurer making it. [L 1987, c 347, pt of §2]

§431:7-303 Securities eligible for deposit. All deposits shall consist of cash or other assets comprised of securities which are eligible for the investment of the funds of insurers under section 431:6-301 representing public obligations, and section 431:6-302 representing corpor…

§431:7-304 Record and receipt. (a) The director of finance shall keep a record in permanent form of all such funds and securities. (b) The director of finance shall deliver to the insurer a receipt for all funds and securities so deposited by it. [L 1987, c 347, pt of §2]

§431:7-305 Transfer of securities. (a) No transfer of any funds or security so held on deposit, whether voluntary or by operation of law, shall be valid unless approved in writing by the commissioner and countersigned by the director of finance or by the director's authorized dep…

§431:7-306 Director may designate depositary. At the request of an insurer, the director of finance may designate any solvent trust company or other solvent financial institution having trust powers, domiciled in the United States, as the director's depositary to receive and hold…

§431:7-307 Responsibility for deposits. This State shall be responsible for the safekeeping and return of all funds and securities deposited pursuant to section 431:7-301 to section [431:7-311] with the director of finance. The insurer shall be responsible for the safekeeping and…

§431:7-308 Dividends and substitutions. While solvent and complying with this part, an insurer shall be entitled:

§431:7-309 Release of deposit. (a) Any required deposit or portion thereof shall be released in these instances only: (b) No such release shall be made except on application to and written order of the commissioner made upon proof satisfactory to the commissioner of the existence…

§431:7-310 Voluntary excess deposit. An insurer may deposit and maintain on deposit with the director of finance through the commissioner funds and eligible securities in amount exceeding its required deposit under this part by not more than $100,000 for the purpose of absorbing …

§431:7-311 Not subject to levy. No judgment creditor or other claimant of an insurer shall levy upon any deposit held pursuant to this article or upon any part hereof. [L 1987, c 347, pt of §2]

ARTICLE 8 UNAUTHORIZED INSURERS AND SURPLUS LINES PART I. GENERAL PROVISIONS §431:8-101 Scope. This article shall apply to the placement of insurance in insurers not authorized to transact insurance in the state in which the subject resident is located or in which the insurance c…

§431:8-102 Definitions. As used in this article: "Approved continuing education course" means a course approved by the commissioner following receipt of recommendations from insurance professionals. "Approved course provider" means an individual or entity that is approved to offe…

PART II. UNAUTHORIZED INSURERS §431:8-201 Transacting insurance business without certificate of authority prohibited. It shall be unlawful for any insurer to transact an insurance business in this State, as defined in section 431:1-215, without a certificate of authority; provide…

§431:8-202 Acting for or aiding unauthorized insurer prohibited. (a) No person shall directly or indirectly act as producer for, or otherwise represent or aid on behalf of another, any unauthorized insurer in the solicitation, negotiation, procurement, or effectuation of insuranc…

§431:8-203 Validity of contracts illegally effectuated. A contract of insurance effectuated by an unauthorized insurer in violation of this article shall be voidable except at the instance of the insurer. [L 1987, c 347, pt of §2]