2012 New York Consolidated Laws
ISC - Insurance
Article 15 - (1501 - 1510) HOLDING COMPANIES
1506 - Acquisition or retention of control of insurers.

 
    §  1506.  Acquisition  or  retention  of  control  of insurers. (a) No
  person, other than an authorized insurer, shall acquire control  of  any
  domestic  insurer,  whether  by purchase of its securities or otherwise,
  unless:
    (1) it gives twenty days' written  notice  to  the  insurer,  or  such
  shorter period of notice as the superintendent permits, of its intention
  to acquire control, and
    (2) it receives the superintendent's prior approval.
    (b)  The  superintendent  shall  disapprove  such  acquisition  if  he
  determines, after notice and an  opportunity  to  be  heard,  that  such
  action is reasonably necessary to protect the interests of the people of
  this  state. Only the following factors may be considered in making such
  determination:
    (1) the financial condition of the acquiring person and the insurer;
    (2) the trustworthiness of the acquiring person or any of its officers
  or directors;
    (3) a plan for the proper  and  effective  conduct  of  the  insurer's
  operations;
    (4) the source of the funds or assets for the acquisition;
    (5)  the  fairness  of  any  exchange of shares, assets, cash or other
  consideration for the shares or assets to be received;
    (6) whether the effect of the  acquisition  may  be  substantially  to
  lessen  competition  in  any line of commerce in insurance or to tend to
  create a monopoly therein; and
    (7) whether the acquisition is likely to be hazardous  or  prejudicial
  to the insurer's policyholders or shareholders.
    (c)  (1)  The  following  conditions affecting any controlled insurer,
  regardless of when such control has been  acquired,  are  violations  of
  this article:
    (A)  the  controlling  person or any of its officers or directors have
  demonstrated untrustworthiness; and
    (B) the effect of retention of control, in  the  case  of  a  domestic
  controlled  insurer,  may  be substantially to lessen competition in any
  line of commerce in insurance or to tend to create a  monopoly  therein,
  or,  in  the  case  of  a  foreign  or  alien controlled insurer, may be
  substantially to lessen competition in any line of commerce in insurance
  in this state or to tend to create a monopoly therein.
    (2)  If,  after  notice  and  an  opportunity   to   be   heard,   the
  superintendent  determines  that any of the foregoing violations exists,
  he shall issue an order based on written findings and cause the same  to
  be  served  upon  the insurer and all persons affected thereby directing
  any person found to be in violation hereof to take appropriate action to
  cure such violation. Upon the failure of any such person to comply  with
  such  order, section one thousand five hundred ten of this article shall
  become applicable.
    (d) The superintendent may require the submission of such  information
  as  he deems necessary to determine whether any acquisition or retention
  of control complies with this article and may require, as a condition of
  approval of such acquisition or retention of control, that  all  or  any
  portion of such information be disclosed to the insurer's shareholders.
    (e)  Unless  subject  to  registration under section one thousand five
  hundred three of this article, or unless acquisition of its  control  is
  subject  to  subsections  (a)  and  (b) hereof, every authorized insurer
  shall, within thirty days after any event  requiring  notice  hereunder,
  notify  the superintendent in writing of the identity of any person whom
  the insurer then knows or has reason to believe controls, or  has  taken
  any  action,  other  than  preliminary  negotiations  or discussions, to
  acquire control of the insurer.