2006 New York Code - Deposits; Custody, Beneficiaries, Exchanges, Inspection And Income.

 
    §  1314.  Deposits;  custody, beneficiaries, exchanges, inspection and
  income.(a) (1) The superintendent shall be the official custodian of all
  deposits of securities required or authorized by the provisions of  this
  chapter,  unless  otherwise  specifically provided by law. He shall keep
  the same in a safe place provided by the state or  in  custody  for  his
  account  with a bank, trust company or national bank in this state which
  may be designated by the depositing insurer, subject to the approval  of
  the superintendent.
    (2) All such securities shall be held by the superintendent, in trust,
  without  preference  or  priority  to  any beneficiary entitled to share
  therein, for the security  of  the  depositing  insurer's  policyholders
  within  the  United States, its territories and possessions, except that
  securities deposited by an alien insurer shall be held in trust for  the
  security  of  the  policyholders and creditors of the depositing insurer
  within the United States, its territories and possessions.
    (3)  Such  securities  may  be  registered  in   the   name   of   the
  superintendent  as  such  trustee  or,  at  the option of the depositing
  insurer, may be in bearer form.
    (4) "Policyholders" as used in this chapter in any provision  relating
  to  beneficiaries  of  deposits  includes  all persons having a legal or
  equitable right against the depositing insurer or  the  insured  arising
  out of an insurance or annuity contract. "Depositing insurer" as used in
  this chapter includes any lawful successor in interest to such insurer.
    (b)  The depositing insurer shall not assign or otherwise transfer all
  or any part of its interest in any such deposit, without the approval of
  the superintendent, and any  such  transfer,  whether  voluntary  or  by
  operation   of   law,   without   such  approval,  shall  be  void.  The
  superintendent may approve transfer of all of the  depositing  insurer's
  residuary  interest  in such deposit if with his approval the transferee
  assumes all liabilities of the transferor to the beneficiaries  of  such
  deposit.
    (c)  No  judgment creditor or other claimant may levy upon any deposit
  or part thereof. Upon the making of an order by  a  court  of  competent
  jurisdiction  for the liquidation, rehabilitation or conservation of any
  depositing insurer, the  deposit  and  the  income  therefrom  shall  be
  transferred  to  the  superintendent  as  liquidator,  rehabilitator  or
  conservator.
    (d) All deposits of securities held by the superintendent  which  were
  made  pursuant  to any prior insurance law shall be deemed to be held in
  compliance with the provisions of this chapter,  for  the  purposes  for
  which such deposits were originally made.
    (e)  The  depositing  insurer  may  from time to time exchange for any
  deposited securities other securities eligible under the  provisions  of
  this chapter if in the opinion of the superintendent the aggregate value
  of such deposit will not be thereby reduced below the amount required by
  law.
    (f) So long as the depositing insurer shall continue solvent and shall
  comply  with the laws of this state applicable to it, the superintendent
  shall permit it to collect  and  dispose  of  the  income  on  deposited
  securities.
    (g)   (1)   No  exchange,  release  or  other  transfer  of  deposited
  securities,  or  any  interest  therein,  shall  be  valid  unless:  (i)
  countersigned  by  a  member  of  the  state  tax commission or a person
  designated for such purpose by such commission, and  (ii)  requested  by
  the  depositing  insurer.  Except  for  a  transfer  for  redemption  or
  refunding, the depositing insurer's request must be  evidenced  in  such
  manner as the superintendent requires.
    (2)  The  department  of  taxation  and  finance and the department of
  insurance shall each keep a book with entries showing the  name  of  the
  insurer  for  whose account such transfer is made by the superintendent,
  the name of the transferee unless made in blank, and the  par  value  of
  the securities transferred.
    (3)  Within  five days after countersigning and entering the same, the
  commissioner of taxation and finance shall advise by  mail  the  insurer
  from  whose  account  such  transfer  is made, of the kind and amount of
  security transferred.
    (h) Every depositing insurer shall, at least once during each calendar
  year,  cause  such  securities  to  be  examined  by  some  person  duly
  authorized  in  writing.  Such  person  shall,  at  the  request  of the
  superintendent,  execute  a  certificate  stating  the  result  of  such
  examination.