NU Online News Service, Aug. 15, 1:46 p.m. – The New York State Insurance Department is asking for more information from insurance companies that do business in the state but are exempt from the full insurance holding company reporting requirements.
The department describes the new filing requirements in Circular Letter Number 17, a document posted to its Web site at http://www.ins.state.ny.us/cl01_17.htm
Article 15 of the New York Insurance Law requires many insurers based in the state to file extensive reports with the state insurance department.
The article exempts New York-based mutual insurers, and holding companies based in other states that are authorized to sell coverage in New York.
But the New York department has the authority to ask for special reports, and it now wants more reports from the exempt companies, “to enhance the Superintendent’s understanding of the holding company structure of authorized insurers operating in this State, and to assess the current or potential risk to insurance subsidiaries,” department officials write in the circular letter.
The following are the new reporting requirements for life, health and property-casualty insurers that are authorized to do business in New York but are exempt from the Article 15 reporting requirements:
- Every exempt domestic insurer must send the department the latest Insurance Holding Company System Annual Registration Statement that it or its parent company has filed in any state by Sept. 1. Insurers not required to file registration statements are supposed to send the New York department the information that would normally be included in the registration statement.
- Every domestic insurer that is exempt must send the department all registration statements and amendments they and their parent companies file in the future in states other than New York. An insurer that is not required to file registration statements must give the New York department the equivalent information within 120 days after the close of the parent company’s fiscal year.
- Every exempt insurer that does business in the state, whether based in New York or another state, must e-mail the department a notice at least 30 days before acquiring control of any domestic New York insurer.
- Every exempt domestic insurer must e-mail the department a notice at least 30 days before it lends large amounts of capital to affiliates, invests large amounts of capital affiliates, or takes or shifts large amounts of financial responsibility through guarantee contracts, reinsurance arrangements or management agreements.
The New York department is also asking life insurers to notify it in some cases if they end up investing, directly or indirectly, more than 2.5% of their surplus in affiliates or controlling persons.