Title ISC, Insurance

§ 1214. Acting for foreign corporation which has not designated\nsuperintendent as attorney. No person acting for himself or for others\nshall solicit or procure, or aid in soliciting or procuring, policies or\ncertificates of insurance from, or adjust losses or in any manner ai…

§ 1215. Forfeiture of office by director or trustee of a domestic\nmutual insurer. The office of a trustee or director of any domestic\nmutual insurer shall immediately become vacant whenever he fails to\nattend at least one regular meeting of the board of trustees or\ndirectors…

§ 1216. Notice of indemnification of directors and officers of\ninsurance corporations. No payment of indemnification, advancement or\nallowance under sections seven hundred twenty-one to seven hundred\ntwenty-seven inclusive of the business corporation law shall be made\nunless…

§ 1217. Vouchers for disbursements. No domestic insurance company\nshall make any disbursement of one hundred dollars or more unless\nevidenced by a voucher signed by or on behalf of the payee as\ncompensation for goods or services rendered for the company, and\ncorrectly descri…

§ 1218. Regulation of stock ownership, interlocking directors and\ncommon management. (a) Any domestic insurer and any foreign or alien\ninsurer authorized to do business in this state may retain, invest in or\nacquire all or any shares, or, by contract of reinsurance or otherwi…

§ 1219. Misconduct by directors; insolvency. (a) Every director of an\ninsurance corporation who:\n (1) in case of the fraudulent insolvency of such corporation, shall\nhave participated in such fraud, or\n (2) as such director, either wilfully does any act expressly forbidden\n…

§ 1220. Misconduct by officers and directors of co-operative fire\ninsurance companies and of fraternal benefit societies. No officer or\ndirector of a co-operative fire insurance company or of a fraternal\nbenefit society shall sell his position as such officer or director for\…

§ 1221. Transactions by officers, directors and certain shareowners in\nthe insurer's shares. (a) Every person who directly or indirectly owns\nbeneficially more than ten percent of any class of shares of a domestic\ninsurer or is a director or officer thereof shall file in the …

§ 1301. Admitted assets. (a) In determining the financial condition of\na domestic or foreign insurer or the United States branch of an alien\ninsurer for the purposes of this chapter, there may be allowed as\nadmitted assets of such insurer, unless otherwise specifically provid…

§ 1302. Assets not admitted. (a) In addition to assets not admitted\npursuant to section one thousand three hundred one of this article, the\nfollowing shall not be allowed as admitted assets of a domestic or\nforeign insurer or the United States branch of an alien insurer in an…

§ 1303. Loss or claim reserves. Every insurer shall, except as\nprovided in section one thousand three hundred four of this article and\nsubject to specific provisions of this chapter, maintain reserves in an\namount estimated in the aggregate to provide for the payment of all\n…

§ 1304. Valuation reserves. Every insurer authorized under this\nchapter to transact the kinds of insurance specified in paragraph one,\ntwo or three of subsection (a) of section one thousand one hundred\nthirteen of this chapter shall, subject to specific provisions of this\nch…

§ 1305. Unearned premium reserves. (a) Every authorized insurer shall,\nexcept as to reserves required under section one thousand three hundred\nfour of this article and subject to paragraph nine of subsection (a) of\nsection one thousand three hundred one of this article and ot…

§ 1306. Miscellaneous liabilities. In addition to liabilities and\nreserves on contracts of insurance issued by it, every insurer shall be\ncharged with the estimated amount of all its other liabilities,\nincluding taxes, expenses, other obligations due or accrued at the date\no…

§ 1307. Contingent liability for borrowings. (a) Any domestic stock,\nmutual or co-operative insurance company or reciprocal insurer may,\nwithout pledging any of its assets, receive advances or borrow funds to:\n (1) conduct its business,\n (2) enable it to comply with any surp…

§ 1308. Reinsurance, when permitted; effect on reserves. (a) (1) Any\nauthorized insurer, hereinafter called the "ceding insurer", may,\nsubject to the limitations of this chapter, reinsure its risks and\npolicy liabilities in any other assuming insurer with the effects herein\n…

§ 1309. Insolvency of an insurer. (a) Whenever the superintendent\nfinds from a financial statement or report on examination that an\nauthorized insurer is unable to pay its outstanding lawful obligations\nas they mature in the regular course of business, as shown by an excess\n…

§ 1310. Impairment of a stock insurer. (a) Whenever the superintendent\nfinds from a financial statement, or a report on examination, of any\ndomestic stock insurer that (i) the admitted assets are less than the\naggregate amount of its liabilities and outstanding capital stock …

§ 1311. Impairment of a mutual or reciprocal insurer. (a) In this\nsection "required surplus" includes any guaranty surplus or special\ncontingent surplus or other specifically reserved surplus account of a\ndomestic mutual insurer, a domestic reciprocal insurer or any other\ndo…

§ 1312. Trusteed surplus of alien insurers; impairment. (a) (1) In\naddition to other requirements of this chapter every authorized alien\ninsurer shall, not later than the first day of March in each year, file\nwith the superintendent a statement (herein called a "trusteed surp…

§ 1313. Contents of advertisements and other public announcements\nconcerning financial condition of insurers. (a) (1) Except as provided\nin subsection (g) hereof or permitted by regulation, every advertisement\nor other public announcement published, issued or distributed in t…

§ 1314. Deposits; custody, beneficiaries, exchanges, inspection and\nincome. (a) (1) The superintendent shall be the official custodian of\nall deposits of securities required or authorized by the provisions of\nthis chapter, unless otherwise specifically provided by law. He sha…

§ 1315. Trusteed assets of alien insurers. (a) Whenever a licensed\nalien insurer is required or permitted by this chapter to deposit assets\nwith a trustee or trustees for the security of its policyholders and\ncreditors in the United States, such assets shall be known as "trus…

§ 1316. Voluntary deposits. The superintendent may receive from any\nauthorized insurer a deposit required by or pursuant to the laws of\nanother state as a prerequisite to doing business in such other state,\nand may also receive from any insurer any additions to its deposits\n…

§ 1317. Release of deposits. (a) (1) In this section, "release of\ndeposits" means the transfer and delivery by the superintendent of\ndeposited securities to the depositing insurer at its request, or to a\nperson designated by it in writing, without substitution of other\nsecur…

§ 1318. Deposits, securities eligible. (a) Except as otherwise\nprovided in this chapter, every deposit made with the superintendent\nshall be in the securities specified in paragraphs one and two of\nsubsection (b) of section one thousand four hundred two of this chapter,\nesti…

§ 1319. Deposits by foreign insurers. (a) Every foreign insurer doing\nbusiness in this state shall keep on deposit with the superintendent, or\nwith the state officer of its home state designated by law for such\npurpose, the same amount of securities which a like domestic insu…

§ 1320. Deposits by alien insurers; statutory deposits. (a) No alien\ninsurer authorized to do an insurance business in this state shall do\nsuch business unless it shall have securities deposited (for the benefit\nof all its policyholders, or all its policyholders and creditors…

§ 1321. Commutation of reinsurance agreements. (a) If the\nsuperintendent finds that a domestic insurer or a United States branch\nof an alien insurer entered through this state is impaired or insolvent\nwithin the meaning of this chapter, the superintendent may permit such\nins…

§ 1322. Risk-based capital for life insurance companies, accident and\nhealth insurance companies, corporations organized pursuant to article\nforty-three of this chapter, and certain health maintenance\norganizations. (a) Definitions. In this section:\n (1) "Adjusted RBC report…

§ 1323. Issuance of capital notes by domestic life insurance\ncompanies. (a) A domestic life insurance company may at any time or from\ntime to time issue capital notes pursuant to this section in an\naggregate principal amount not exceeding (1) twenty-five percent of its\ntotal…

§ 1324. Risk-based capital for property/casualty insurance companies.\n(a) Definitions. In this section:\n (1) "Adjusted RBC report" means an RBC report which has been adjusted\nby the superintendent in accordance with paragraph two of subsection (c)\nof this section.\n (2) "Cor…

§ 1325. Exemption. For the purposes of exempting certain insurance\ncompanies from the provisions of section one thousand three hundred\ntwenty-four of this article, the superintendent shall exempt, through\nDecember thirty-first, two thousand twenty-eight, those stock and\nnon-…

§ 1401. Definitions and rules of general application. (a) In this\narticle: (1) "Invested assets" means the admitted assets of an insurer\nthat conform to the requirements of paragraphs one and two of subsection\n(a) of section one thousand three hundred one of this chapter, but…

§ 1402. Minimum capital or minimum surplus to policyholder\ninvestments. (a) Before investing its funds in any other investments,\nevery domestic insurer shall invest and maintain an amount equal to the\ngreater of the minimum capital required by law or the minimum surplus to\np…

§ 1403. Reserve and other investments; certain requirements. (a) If\nthe requirements of section one thousand four hundred two of this\narticle are met:\n (1) any domestic life insurance company may invest its funds in, or\notherwise acquire, or loan upon, only the types of inve…

§ 1404. Types of reserve investments permitted for non-life insurers.\n(a) In addition to the investments specified in subsection (b) hereof,\nbut excluding any investment prohibited by the provisions of paragraph\none, three, four, six, eight, nine or ten of subsection (a) of s…

§ 1405. Investments of life insurers. (a) The assets of a domestic\ninsurer that is authorized to make investments under this section may be\ninvested in the following types of investments, in addition to\ninvestments otherwise authorized, subject in the case of investments\nmad…

§ 1406. Policy loans. (a) Any life insurance company may lend to any\npolicyholder upon the security of the value of his policy a sum not\nexceeding the legal reserve which it is required to maintain thereon.\n (b) A fraternal benefit society may make similar loans subject to th…

§ 1407. Non-reserve and prohibited investments for property/casualty\nand certain other insurers. (a) Any insurer that makes investments under\nthe authority of subsection (c) of section one thousand four hundred\nthree of this article and meets the requirements of such subsecti…

§ 1408. Acquisition of insurance company shares; limitations thereon.\n(a) Any insurer which makes investments under the authority of\nsubsection (c) of section one thousand four hundred three of this\narticle and which meets the requirements of such subsection and section\none …

§ 1409. Limitation of investments. (a) Except as more specifically\nprovided in this chapter, no domestic insurer shall have more than ten\npercent of its admitted assets as shown by its last statement on file\nwith the superintendent invested in, or loaned upon, the securities\…

§ 1410. Derivative transactions and derivative instruments. (a) For\npurposes of this section, except subsection (k) of this section, an\ninsurer shall mean a domestic life insurer, a domestic property/casualty\ninsurer, a domestic reciprocal insurer, a domestic mortgage guarant…

§ 1411. Authorization of, and restrictions on, investments. (a) No\ndomestic insurer shall make any loan or investment, except as provided\nin subsection (h) hereof, unless authorized or approved by its board of\ndirectors or a committee thereof responsible for supervising or ma…

§ 1412. Disposal or deduction of investments unlawfully acquired. (a)\nEvery domestic insurer shall forthwith dispose of any investment\nacquired in violation of the law in force at the date of acquisition.\n (b) In determining the financial condition of any such insurer, the\nv…

§ 1413. Investments of foreign and alien insurers. (a) The\nsuperintendent may refuse a new or renewal license to any foreign\ninsurer, if he finds that its investments do not comply in substance\nwith the investment requirements and limitations imposed by this chapter\nupon lik…

§ 1414. Valuation of investments. (a) (1) All obligations having a\nfixed term and rate of interest and held by any life insurance company\nor fraternal benefit society authorized to do business in this state, if\namply secured and not in default as to principal or interest, sha…

§ 1415. Investments of domestic insurers in persons included on list\nof persons engaged in investment activities in Iran treated as\nnonadmitted assets. 1. As used in this section, the following\ndefinitions shall apply:\n (a) "Iran" shall have the same definition as used in se…

§ 1501. Definitions; determinations. (a) In this article, unless the\ncontext shall otherwise require:\n (1) "Person" means an individual, partnership, firm, association,\ncorporation, joint-stock company, trust, any similar entity or any\ncombination of the foregoing acting in …

§ 1502. Exemptions. (a) Notwithstanding any other provision of this\narticle the following shall not be deemed holding companies:\n (1) authorized insurers, including alien insurers transacting business\nin this state through United States branches, or their subsidiaries; or\n (…