2020 New York Laws
ISC - Insurance
Article 15 - Holding Companies
1510 - Violations; Penalties; Jurisdiction Over Non-Domiciliaries.

§  1510.  Violations;  penalties; jurisdiction over non-domiciliaries.
(a) In addition to any other penalty provided by law, the superintendent
may, upon the wilful failure of any  person  within  a  holding  company
system   to  comply  with  this  article  or  any  regulation  or  order
promulgated hereunder:
  (1) proceed under article seventy-four of this chapter with respect to
a domestic insurer within the holding company system;
  (2) revoke or refuse to renew the authority to  do  business  in  this
state  of  an  authorized  foreign  or  alien insurer within the holding
company system or refuse to issue such authority to any other insurer in
the system;
  (3) request the attorney general to commence  a  proceeding  utilizing
the  procedures  of  sections  seven thousand four hundred seventeen and
seven  thousand  four  hundred  eighteen  of  this  chapter  to  enforce
compliance or, where appropriate, for an order directing the termination
of control of a domestic insurer; or
  (4)  direct  that,  in  addition to any other penalty provided by law,
such person forfeit to the people of this state a sum not exceeding five
hundred dollars for a first violation  and  two  thousand  five  hundred
dollars  for  any  subsequent violation. An additional sum not exceeding
two thousand five hundred dollars shall be imposed for each month during
which any such violation shall continue.
  (b) If the superintendent finds after notice  and  opportunity  to  be
heard  that  any domestic controlled insurer or any policyholder thereof
has suffered any loss or damage because of the wilful violation of  this
article,  or  of  any  regulation or order promulgated hereunder, by any
person within the insurer's holding company system, he may  request  the
attorney general to maintain a civil action in the name of the people of
the  state  or  intervene  in  an  action brought by or on behalf of the
insurer or policyholder for the recovery of compensatory damages for the
benefit of the insurer or policyholder or for other appropriate relief.
  (c) As to any cause of action enumerated in this section a  court  may
exercise  personal jurisdiction over any non-domiciliary who controls or
is an officer or director of a person who controls a domestic insurer.
  (d) Whenever it appears to the  superintendent  that  any  person  has
committed  a  violation of section one thousand five hundred six of this
article that prevents the full  understanding  of  the  enterprise  risk
posed  to  the  insurer by the holding company system, the violation may
serve  as  an  independent   basis   for   disapproving   dividends   or
distributions  or  as grounds for rehabilitation or liquidation pursuant
to article seventy-four of this chapter.