7701 – Short Title.

§ 7701. Short title. This article shall be known and may be cited as “The Life and Health Insurance Company Guaranty Corporation of New York Act”.

7702 – Purpose.

§ 7702. Purpose. The purpose of this article is to provide funds to protect policy owners, insureds, health care providers, beneficiaries, annuitants, payees and assignees of life insurance policies, health insurance policies, annuity contracts, funding agreements and supplemental contracts issued by life insurance companies, health insurance companies, and property/casualty insurance companies, subject to certain limitations, […]

7703 – Scope.

§ 7703. Scope. (a) (1) This article shall apply to direct life insurance policies, health insurance policies, annuity contracts, funding agreements, and supplemental contracts issued by a life insurance company, health insurance company, or property/casualty insurance company licensed to transact life or health insurance or annuities in this state at the time the policy, contract, […]

7704 – Construction.

§ 7704. Construction. This article shall be liberally construed to effect the purpose under section seven thousand seven hundred two of this article which shall constitute an aid and guide to interpretation.

7705 – Definitions.

§ 7705. Definitions. As used in this article: (a) “Account” means any of the two accounts created under section seven thousand seven hundred six of this article. (b) “Contractual obligations” means any obligation under covered policies, but shall not include any obligation with respect to policyholder dividends unpaid or unapplied, retrospective rate credits or similar […]

7706 – Creation of the Corporation.

§ 7706. Creation of the corporation. (a) There is created a not-for-profit corporation to be known as “The Life and Health Insurance Company Guaranty Corporation of New York”. To the extent that the provisions of the not-for-profit corporation law do not conflict with the provisions of this article or the plan of operation of the […]

7707 – Board of Directors.

§ 7707. Board of directors. (a) The board of directors of the corporation shall consist of not less than five nor more than thirteen member insurers serving terms as established in the plan of operation. The members of the board shall be selected by member insurers subject to the approval of the superintendent. Vacancies on […]

7708 – Powers and Duties of the Corporation.

§ 7708. Powers and duties of the corporation. In addition to the powers and duties enumerated in other sections of this article, and subject to limitations and exclusions contained in this and other sections of this article: (a) (1) If a domestic insurer is an impaired or insolvent insurer, the corporation shall, with the approval […]

7709 – Assessments.

§ 7709. Assessments. (a) For the purpose of providing the funds necessary to carry out the powers and duties of the corporation, the board of directors shall assess the member insurers, separately for each account, at such time and for such amounts as the board finds necessary in accordance with the provisions of paragraph three […]

7710 – Plan of Operation.

§ 7710. Plan of operation. (a) (1) The corporation shall submit to the superintendent a plan of operation and any amendments thereto necessary or suitable to assure the fair, reasonable and equitable administration of the corporation. The plan of operation and any amendments thereto shall become effective upon approval in writing by the superintendent. (2) […]

7711 – Powers of the Superintendent and the Board of Directors.

§ 7711. Powers of the superintendent and the board of directors. In addition to the duties and powers enumerated elsewhere in this chapter: (a) The superintendent may suspend or revoke, after notice and hearing, the certificate of authority to transact insurance in this state of any member insurer which fails to pay an assessment when […]

7712 – Credits for Assessments Paid.

§ 7712. Credits for assessments paid. (a) The superintendent shall annually, within six months following the close of each calendar year, furnish to the commissioner of taxation and finance and the director of the division of the budget a statement of operations for the life insurance guaranty corporation and the life and health insurance company […]

7713 – Miscellaneous Provisions.

§ 7713. Miscellaneous provisions. (a) Nothing in this article shall be construed to reduce the liability for unpaid assessments of the insureds of an impaired or insolvent insurer operating under a plan with assessment liability. (b) The corporation shall maintain records of all negotiations and meetings in which the corporation or its representatives are involved […]

7714 – Examination of the Corporation; Annual Report.

§ 7714. Examination of the corporation; annual report. The corporation shall be subject to examination and regulation by the superintendent. The corporation shall submit to the superintendent, not later than May first of each year, a financial report for the preceding calendar year in a form approved by the superintendent and a report of its […]

7715 – Tax Exemptions.

§ 7715. Tax exemptions. The corporation shall be exempt from payment of all fees and all taxes levied by this state or any of its subdivisions, except taxes levied on real property.

7716 – Immunity and Indemnification.

§ 7716. Immunity and indemnification. 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 […]

7717 – Stay of Proceedings; Reopening Default Judgments.

§ 7717. Stay of proceedings; reopening default judgments. All proceedings in which the impaired or insolvent insurer is a party in any court in this state shall be stayed sixty days from the date an order of liquidation, rehabilitation, or conservation is final to permit proper legal action by the corporation on any matters germane […]

7718 – Prohibited Advertisement of the Corporation in Sale of Insurance.

§ 7718. Prohibited advertisement of the corporation in sale of insurance. No person, including an insurer, agent or affiliate of an insurer and no broker shall make, publish, disseminate, circulate or place before the public, or cause directly or indirectly, to be made, published, disseminated, circulated or placed before the public, in any newspaper, magazine […]

7719 – Resolution Facility.

§ 7719. Resolution facility. (a) The corporation may incorporate one or more not-for-profit corporations, known as a resolution facility, in connection with the liquidation of an insolvent domestic life insurance company, health insurance company, or property/casualty insurance company under article seventy-four of this chapter for the purpose of administering and disposing of the business of […]

7720 – Penalties.

§ 7720. Penalties. (a) If any member insurer fails to make any payment required by this article, or if the superintendent has cause to believe that any other statement filed is false or inaccurate in any particular, or that any payment made is incorrect, the superintendent may examine all the books and records of the […]