2006 New York Code - Grounds For Rehabilitation Of Domestic Insurer.

 
    §   7402.   Grounds   for  rehabilitation  of  domestic  insurer.  The
  superintendent may apply under this article for an order  directing  him
  to rehabilitate a domestic insurer which:
    (a)  Is  insolvent  within  the  meaning of section one thousand three
  hundred nine of this chapter.
    (b) Has refused to submit its books, papers, accounts  or  affairs  to
  the reasonable inspection of the superintendent, his deputy or examiner.
    (c) Has failed or refused to comply, within the time designated by the
  superintendent, with an order of the superintendent, pursuant to law, to
  make   good  an  impairment  of  its  capital,  or  minimum  surplus  to
  policyholders, if a stock insurer, or  of  its  minimum  surplus,  if  a
  mutual   insurer,   a  reciprocal  insurer,  Lloyds  underwriters  or  a
  co-operative fire insurance corporation.
    (d)  Has  transferred  or  attempted  to  transfer,  by  contract   of
  reinsurance or otherwise, substantially its entire property or business,
  or  entered  into  any transaction which merges substantially its entire
  property or  business  into  the  property  or  business  of  any  other
  corporation,  association,  society,  order, firm or individual, without
  having first obtained the approval of the superintendent.
    (e) Is found, after examination, to be  in  such  condition  that  its
  further  transaction of business will be hazardous to its policyholders,
  creditors, or the public.
    (f) Has wilfully violated its charter or any law of the state.
    (g) Has an officer who refused to be examined under  oath,  concerning
  its affairs.
    (h) If organized under article five-a, six, seven, eight, ten or ten-b
  of  the  former  insurance  law constituting chapter twenty-eight of the
  consolidated laws of nineteen hundred nine, or if organized as a  mutual
  or  non-stock  insurer  under  article  nine-a,  nine-c,  ten, eleven-a,
  eleven-b, twelve or fourteen of the former  insurance  law  constituting
  chapter  twenty-eight  of  the  consolidated  laws in effect immediately
  before  the  effective  date  of  this  chapter  or  article  forty-one,
  forty-two,  forty-four,  forty-five,  sixty-one  or  sixty-six  of  this
  chapter, including amendments thereto in  force  at  the  time  of  such
  organization,  is found to be in such condition, after examination, that
  it could not meet the requirements for incorporation  and  authorization
  specified  in  such  articles except with respect to having any required
  initial surplus.
    (i) Has ceased to do the business of insurance for  a  period  of  one
  year  as  provided in subsection (b) of section one thousand two hundred
  three of this chapter.
    (j) Has commenced voluntary liquidation or dissolution, or attempts to
  commence or prosecute any action or proceeding to liquidate its business
  or affairs, or to dissolve its corporate  charter,  or  to  procure  the
  appointment of a receiver, trustee, custodian, or sequestrator under any
  law except this article.
    (k)  Has  been  the subject of an application for the appointment of a
  receiver, trustee, custodian or  sequestrator  of  the  insurer  or  its
  property,  or  if  a  receiver,  trustee,  custodian, or sequestrator is
  appointed by a federal court or if such appointment is imminent.
    (l) Has  consented  to  such  an  order  through  a  majority  of  its
  directors, shareholders, or members.
    (m)  Has  not  organized  or completed its organization and obtained a
  license or certificate authorizing  it  to  commence  the  doing  of  an
  insurance  business  within one year from the date of its incorporation,
  as provided in subsection (a) of section one thousand two hundred  three
  of this chapter.
    (n)  Has  failed  or refused to take such steps as may be necessary to
  remove from office any officer or director whom the  superintendent  has
  found,  after  notice to and hearing of such insurer and of such officer
  or director, to be a dishonest or untrustworthy person.
    (o)  Has  an  occurrence  of  an  authorized  control level event or a
  mandatory control level event pursuant  to  subsection  (f)  or  (g)  of
  section one thousand three hundred twenty-two of this chapter.