N.Y.
Insurance Law Section 1104
Revocation or suspension of license
- restriction of license authority or limitation on premiums written
(a)
The superintendent may revoke any license issued to any foreign or alien insurer to do an insurance business in this state if, after notice to and hearing, he finds that such insurer has failed to comply with any requirement imposed upon it by the provisions of this chapter and if in his judgment such revocation is reasonably necessary to protect the interests of the people of this state. The superintendent may in his discretion reinstate any such license if he finds that a ground for such revocation no longer exists.(b)
The superintendent shall revoke the certificate of authority of any corporation or agent convicted of violating § 2603 (Issue or circulation of false literature)section two thousand six hundred three of this chapter.(c)
The superintendent may suspend the license, restrict the license authority, or limit the amount of premiums written in this state of any accident and health insurance company, property/casualty insurance company, co-operative property/casualty insurance company, title insurance company, mortgage guaranty insurance company, reciprocal insurer, Lloyds underwriters or nonprofit property/casualty insurance company, except those insurers subject to the provisions of subsection (c) of § 2343 (Medical malpractice insurance rates)section two thousand three hundred forty-three of this chapter, if after a hearing on a record, unless waived by the affected insurer, the superintendent determines that such insurer’s surplus to policyholders is not adequate in relation to the insurer’s outstanding liabilities or to its financial needs. All matters pertaining to a proceeding or determination pursuant to this subsection shall be confidential and not subject to subpoena or public inspection under article six of the public officers law or any other statute, except to the extent that the superintendent finds release of information necessary to protect the public. The hearing shall be initiated within twenty days after written notice to the insurer. Any determination pursuant to this subsection shall contain findings specifying the factors deemed significant in regard to the particular insurer, and shall set forth the reasons supporting the suspension, restriction or limitation ordered by the superintendent. The following factors shall be considered by the superintendent in making such determination:(1)
the size of the insurer as measured by its admitted assets, capital and surplus to policyholders, reserves, premium writings, insurance in force and other appropriate criteria, with such surplus to policyholders for foreign insurers adjusted in accordance with § 1413 (Investments of foreign and alien insurers)section one thousand four hundred thirteen of this chapter;(2)
the extent to which the insurer’s business is diversified among the several kinds of insurance;(3)
the number and size of risks insured in each kind of insurance and the insurer’s loss experience in regard to such risks;(4)
the extent of geographical dispersion of the insurer’s risks;(5)
the nature and extent of the insurer’s reinsurance program;(6)
the quality, diversification and liquidity of the insurer’s investment portfolio;(7)
the recent past and projected future trends in regard to the insurer’s loss experience and in the size of the insurer’s surplus to policyholders;(8)
the surplus to policyholders maintained by other comparable insurers;(9)
the adequacy of the insurer’s reserves; and(10)
the quality and liquidity of investments in subsidiaries made pursuant to this chapter.(d)
The superintendent shall identify and review those licensed property/casualty insurers needing immediate or targeted regulatory attention, and shall include the number of insurers so identified in the report required by section three hundred thirty-four of this chapter. Such report shall also include the name of each licensed property/casualty insurer placed in formal conservatorship, rehabilitation or liquidation during the preceding year. Nothing herein shall be construed to restrict or diminish any right or power of the superintendent under any other provision of this chapter.
Source:
Section 1104 — Revocation or suspension of license; restriction of license authority or limitation on premiums written, https://www.nysenate.gov/legislation/laws/ISC/1104 (updated Sep. 22, 2014; accessed Oct. 26, 2024).
