N.Y. Insurance Law Section 1710
Divestiture of control

  • superintendent’s power to order disposition of subsidiaries

(a)

Any parent corporation seeking to divest its controlling interest in a domestic insurer, in any manner, shall file with the superintendent, with a copy to the insurer, notice of its proposed divestiture at least thirty days prior to the cessation of control, provided, however that this subsection shall not apply if notice is provided as required by subsection (b) of § 1701 (Authority to invest in subsidiaries)section one thousand seven hundred one of this article.

(b)

In addition to the powers granted to the superintendent elsewhere in this chapter (including, without limitation, § 109 (Penalties)section one hundred nine of this chapter and Financial Services Law § 309 (Injunction to restrain violation of this chapter)section three hundred nine of the financial services law), the superintendent may, at any time, order a parent corporation to dispose of any subsidiary, if the superintendent finds, after notice and an opportunity to be heard, either:

(1)

that its acquisition or continued retention is or was not permitted by the provisions of this article; or

(2)

except in the case of a subsidiary then exempted by the provisions of subsection (a) or (b) of § 1704 (Exemptions applicable to subsidiaries)section one thousand seven hundred four of this article, that its continued retention is materially adverse to the interests of the parent corporation’s policyholders or subscribers.

Source: Section 1710 — Divestiture of control; superintendent's power to order disposition of subsidiaries, https://www.­nysenate.­gov/legislation/laws/ISC/1710 (updated Aug. 25, 2023; accessed Oct. 26, 2024).

Green check means up to date. Up to date

Accessed:
Oct. 26, 2024

Last modified:
Aug. 25, 2023

§ 1710’s source at nysenate​.gov

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