2013 New York Consolidated Laws
ISC - Insurance
Article 75 - (7501 - 7507) LIFE INSURANCE GUARANTY FUND
7503 - The Life Insurance Guaranty Corporation.

 
    §  7503.  The  Life Insurance Guaranty Corporation. (a) The non-profit
  body corporate  known  as  "The  Life  Insurance  Guaranty  Corporation"
  created  pursuant  to  chapter  four  hundred  eighty-one of the laws of
  nineteen hundred forty-one, is hereby continued. It shall be composed of
  the superintendent  ex-officio  and  one  representative  of  each  life
  insurance  company incorporated or organized under any law of this state
  which shall have actively and continuously transacted business  in  this
  state  for  a period of at least three years prior to the effective date
  of article seventy-seven of this chapter. No company shall  be  eligible
  for  membership  in  the  corporation  if a proceeding instituted by the
  superintendent pursuant to  article  seventy-four  of  this  chapter  is
  pending  against  it  in  which event such company shall not be eligible
  until the superintendent shall certify that it is so eligible.
    (b) Every such company which shall become eligible for  membership  in
  the  corporation shall, within forty-five days from the date on which it
  becomes  so  eligible,  file  with  the  superintendent  a   certificate
  designating  its  representative  for  the purposes of such corporation.
  Upon failure  of  any  company  to  make  such  designation  within  the
  forty-five  day  period,  the  superintendent  shall forthwith make such
  designation for and on its behalf and by mail  give  notice  thereof  to
  such  company.  The  designation,  whether  made  by  the company or the
  superintendent, may be revoked by  the  company  at  any  time  with  or
  without  cause.  Any  vacancy  by death, resignation or removal shall be
  filled in  the  same  manner  as  for  the  original  designation  of  a
  representative.
    (c) Each such representative shall also be known as a director and all
  representatives  and  the  superintendent  shall constitute the board of
  directors which shall have complete charge and control of the management
  of the corporation in accordance with the corporate  powers  hereinafter
  set  forth,  including  power to adopt administrative rules, regulations
  and by-laws advisable for the purposes and objects of  the  corporation.
  The superintendent shall be ex-officio chairman of the board.
    (d)  No  director,  officer,  agent  or  other  representative  of the
  corporation  shall  be  individually  liable  to  any  person,  firm  or
  corporation,  including the corporation, for any act or omission to act,
  or for any liability incurred or assumed, on behalf of  the  corporation
  or by virtue hereof.  Any such liability so incurred or assumed shall be
  collectible  only  out  of  the  fund;  nor  shall any member company be
  subject to any liability except for assessment as herein provided.
    (e) The corporation shall be under the immediate  supervision  of  the
  superintendent  and  shall be subject to such provisions of this chapter
  as the superintendent shall deem applicable.
    (f) The corporation shall have the power:
    (1) To use a corporate seal, to contract, to sue and be  sued  and  to
  possess and exercise all powers necessary or convenient for the purposes
  of this article.
    (2)  With  the  approval of the superintendent, to assume, reinsure or
  guaranty, or cause to be assumed, reinsured or guaranteed, partially  or
  wholly,  any  or  all policies or contracts of any member company and to
  make available from the fund such sums as  may  be  necessary  for  such
  purposes.
    (3) To carry out the provisions of this article, the corporation shall
  have  and  may  exercise  all  necessary  rights, powers, privileges and
  franchises of a domestic life insurance company except that it shall not
  be authorized  to  issue  contracts  or  policies  unless  they  replace
  contracts  or  policies  representing obligations in whole or in part of
  another domestic life insurance company or of the corporation.

    (4) To borrow money for the purposes  of  the  fund  with  or  without
  security  and  pledge such assets in the fund as security for such loans
  and  in  connection  therewith  to  rehypothecate  any   securities   or
  collateral  pledged  to  it by a company. Obligations of the corporation
  shall  be legal investments for domestic life insurance companies and to
  the extent authorized by the superintendent may be carried  as  admitted
  assets.
    (5)  To  collect,  or  enforce by legal proceedings, if necessary, the
  payment of, all assessments for which  any  contributor  may  be  liable
  under  this article; to collect any obligation due to the corporation or
  to the fund.
    (g) The corporation shall, subject to such terms and conditions as  it
  may  impose with the approval of the superintendent, assume, reinsure or
  guaranty the performance of the policies and contracts issued  prior  to
  the  effective  date  of  article  seventy-seven  of this chapter by any
  impaired or insolvent member company, and shall have power  to  receive,
  own   and  administer  any  assets  acquired  in  connection  with  such
  assumption, reinsurance or guaranty; provided, however, that  after  the
  effective  date of article seventy-seven of this chapter the corporation
  shall have no responsibility with respect to any claim  under  any  such
  policy  or  contract  except  (i)  to the extent that the amount of such
  claim  exceeds  the  portion  thereof  that  is  covered  under  article
  seventy-seven  of  this  chapter, and (ii) with respect to any claim not
  covered under article seventy-seven of this chapter. As  to  any  policy
  not  in  default  in  the  payment  of  premiums  subsequent to any such
  assumption, reinsurance or guaranty, the corporation shall  make  prompt
  payment of the death benefit due under the terms of the policy.
    (h) Notwithstanding any other provision of this section, no assumption
  by a member company after the effective date of article seventy-seven of
  this  chapter,  of  the  policies or contracts of another member company
  issued prior to the effective date  of  article  seventy-seven  of  this
  chapter,  for  which  assumption  certificates  have  been issued, shall
  result in loss by such policies or contracts of the protection  provided
  under this article.