S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10226
 
                           I N  A S S E M B L Y
 
                                May 9, 2022
                                ___________
 
 Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Cahill) --
   (at request of the Department of Financial Services) -- read once  and
   referred to the Committee on Insurance
 
 AN  ACT  to amend the insurance law, in relation to group capital calcu-
   lations, liquidity stress tests, and confidentiality
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1.  Paragraphs 1 and 2 of subsection (a) of section 110 of the
 insurance  law,  as  amended  by  chapter  238  of the laws of 2013, are
 amended to read as follows:
   (1) may share documents, materials  or  other  information,  including
 confidential [and], privileged, AND TRADE SECRET documents, materials or
 information  with other LOCAL, state, federal, and international regula-
 tory agencies, with the National Association of Insurance Commissioners,
 its affiliates or subsidiaries, [and] WITH  ANY  THIRD-PARTY  CONSULTANT
 DESIGNATED BY THE SUPERINTENDENT, with LOCAL, state, federal, and inter-
 national  law enforcement authorities, including members of any supervi-
 sory college described in section three hundred two of this chapter, AND
 WITH ANY OTHER ENTITY DESIGNATED BY THE SUPERINTENDENT IN A  REGULATION,
 provided that the recipient has the authority and agrees to maintain the
 confidentiality and privileged status of the document, material or other
 information;  provided,  however,  that  this  paragraph  shall  not  be
 construed as limiting access to records pursuant to article six  of  the
 public officers law;
   (2)  may receive documents, materials or information, including other-
 wise confidential [and], privileged, AND TRADE SECRET documents, materi-
 als or information, from the National Association of  Insurance  Commis-
 sioners,  its  affiliates or subsidiaries [and], from regulatory and law
 enforcement  officials  of  other  foreign  or  domestic  jurisdictions,
 including  members of any supervisory college described in section three
 hundred two of this chapter, AND FROM ANY OTHER ENTITY DESIGNATED BY THE
 SUPERINTENDENT IN A REGULATION, and shall maintain  as  confidential  or
 privileged any document, material or information received with notice or
 the  understanding  that it is confidential or privileged under the laws
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD13689-01-2
 A. 10226                            2
 
 of the jurisdiction that is the source  of  the  document,  material  or
 information; and
   §  2.    Section  1503 of the insurance law is amended by adding a new
 subsection (c) to read as follows:
   (C) (1) A HOLDING COMPANY THAT  DIRECTLY  OR  INDIRECTLY  CONTROLS  AN
 INSURER  SHALL  FILE  WITH  THE  SUPERINTENDENT  AN ANNUAL GROUP CAPITAL
 CALCULATION AND THE RESULTS OF AN ANNUAL LIQUIDITY STRESS TEST IN A FORM
 PRESCRIBED BY THE SUPERINTENDENT, PROVIDED,  HOWEVER,  THAT  THE  SUPER-
 INTENDENT MAY EXEMPT A HOLDING COMPANY FROM FILING AN ANNUAL GROUP CAPI-
 TAL  CALCULATION  OR  THE RESULTS OF AN ANNUAL LIQUIDITY STRESS TEST, OR
 PERMIT A HOLDING COMPANY TO SUBMIT A LIMITED ANNUAL GROUP CAPITAL CALCU-
 LATION, IN ACCORDANCE WITH CRITERIA SET FORTH IN A REGULATION.
   (2) NO INSURER, INSURANCE PRODUCER, OR  OTHER  PERSON  SHALL  MAKE  OR
 ISSUE  IN  THIS STATE ANY ADVERTISEMENT, SIGN, PAMPHLET, CIRCULAR, CARD,
 OR OTHER PUBLIC ANNOUNCEMENT PURPORTING TO MAKE KNOWN THE GROUP  CAPITAL
 CALCULATION,  GROUP  CAPITAL  RATIO,  LIQUIDITY  STRESS  TEST RESULTS OR
 SUPPORTING DISCLOSURES FOR SUCH TEST, OR ANY COMPONENT  DERIVED  IN  THE
 CALCULATION THEREOF, OF ANY INSURER OR HOLDING COMPANY SYSTEM, PROVIDED,
 HOWEVER,  THAT  AN INSURER MAY REBUT ANY MATERIALLY FALSE STATEMENT WITH
 RESPECT TO THE FOREGOING WITH THE SUPERINTENDENT'S PRIOR APPROVAL.
   § 3.  Subsection (c) of section 1504 of the insurance law, as  amended
 by chapter 238 of the laws of 2013, is amended to read as follows:
   (c)  The  [superintendent shall keep the] contents of each report made
 pursuant to this article and  any  information  obtained  in  connection
 therewith SHALL BE confidential AND PROPRIETARY AND SHALL NOT BE SUBJECT
 TO  SUBPOENA OR DISCOVERY OR ADMISSIBLE IN EVIDENCE IN ANY PRIVATE CIVIL
 ACTION, and THE SUPERINTENDENT shall not make the  same  public  without
 the prior written consent of the controlled insurer to which it pertains
 unless  the superintendent, after notice and an opportunity to be heard,
 shall determine that the interests of policyholders, shareholders or the
 public will be served by the  publication  thereof.  In  any  action  or
 proceeding  by  the  superintendent  against  the person examined or any
 other person within the same holding company system  a  report  of  such
 examination  published  by  the  superintendent  shall  be admissible as
 evidence of the facts stated therein.
   § 4. Subsection (f) of section 1506 of the insurance law, as added  by
 chapter 238 of the laws of 2013, is amended to read as follows:
   (f)  Any holding company seeking to divest its controlling interest in
 a domestic insurer, in any manner, shall file with  the  superintendent,
 with  a copy to the insurer, notice of its proposed divestiture at least
 thirty days prior to the cessation of control,  PROVIDED,  HOWEVER  THAT
 THIS  SUBSECTION  SHALL  NOT  APPLY IF NOTICE IS PROVIDED AS REQUIRED BY
 SUBSECTION (A) OF THIS SECTION.
   § 5. The insurance law is amended by adding two new sections 1511  and
 1512 to read as follows:
   §  1511.  EXPENSES  FOR  GROUP-WIDE  SUPERVISION. A CONTROLLED INSURER
 SHALL BE LIABLE FOR AND SHALL PAY THE REASONABLE EXPENSES OF THE  SUPER-
 INTENDENT'S  PARTICIPATION  IN  THE  ADMINISTRATION OF GROUP-WIDE SUPER-
 VISION OF INTERNATIONALLY ACTIVE INSURANCE GROUPS, INCLUDING THE ENGAGE-
 MENT OF ATTORNEYS,  ACTUARIES,  AND  ANY  OTHER  PROFESSIONALS  AND  ALL
 REASONABLE TRAVEL EXPENSES.
   § 1512. REGULATIONS. THE SUPERINTENDENT MAY PROMULGATE REGULATIONS:
   (A)  REQUIRING A CONTROLLED INSURER DEEMED BY THE SUPERINTENDENT TO BE
 IN A HAZARDOUS FINANCIAL CONDITION OR A CONDITION THAT WOULD BE  GROUNDS
 FOR  A  PROCEEDING UNDER ARTICLE SEVENTY-FOUR OF THIS CHAPTER, TO SECURE
 A. 10226                            3
 
 AND MAINTAIN A DEPOSIT OR BOND FOR CERTAIN TRANSACTIONS WITHIN THE HOLD-
 ING COMPANY SYSTEM;
   (B)  REQUIRING A HOLDING COMPANY OR CONTROLLED PERSON THAT IS PARTY TO
 AN AGREEMENT OR CONTRACT WITH A CONTROLLED INSURER TO BE SUBJECT TO  THE
 JURISDICTION  OF  ANY  PROCEEDING  AGAINST  THE CONTROLLED INSURER UNDER
 ARTICLE SEVENTY-FOUR OF THIS  CHAPTER  AND  TO  THE  SUPERINTENDENT,  AS
 RECEIVER, FOR THE PURPOSE OF INTERPRETING, ENFORCING, AND OVERSEEING THE
 HOLDING COMPANY'S OR CONTROLLED PERSON'S OBLIGATIONS UNDER THE AGREEMENT
 OR CONTRACT TO PERFORM SERVICES FOR THE CONTROLLED INSURER; AND
   (C)  GOVERNING  RECORDS  AND  DATA  OF,  AND  PREMIUMS AND OTHER FUNDS
 BELONGING TO A CONTROLLED INSURER THAT ARE HELD BY A HOLDING COMPANY  OR
 CONTROLLED PERSON.
   §  6. Subsection (d) of section 1603 of the insurance law, as added by
 chapter 238 of the laws of 2013, is amended to read as follows:
   (d) Any domestic insurer seeking to divest its controlling interest in
 another domestic insurer, in any manner, shall file with the superinten-
 dent, with a copy to the insurer, notice of its proposed divestiture  at
 least  thirty  days prior to the cessation of control, PROVIDED, HOWEVER
 THAT THIS SUBSECTION SHALL NOT APPLY IF NOTICE IS PROVIDED  AS  REQUIRED
 BY SUBSECTION (A) OF THIS SECTION.
   §  7.  Section  1604  of  the insurance law is amended by adding a new
 subsection (c) to read as follows:
   (C) (1) AN AUTHORIZED DOMESTIC INSURER, OTHER THAN A DOMESTIC  INSURER
 REQUIRED  TO  REGISTER  AS  A CONTROLLED INSURER PURSUANT TO SECTION ONE
 THOUSAND FIVE HUNDRED THREE OF THIS CHAPTER, SHALL FILE WITH THE  SUPER-
 INTENDENT  AN  ANNUAL  GROUP CAPITAL CALCULATION IN A FORM PRESCRIBED BY
 THE SUPERINTENDENT,  PROVIDED,  HOWEVER,  THAT  THE  SUPERINTENDENT  MAY
 EXEMPT  AN AUTHORIZED DOMESTIC INSURER FROM FILING AN ANNUAL GROUP CAPI-
 TAL CALCULATION OR PERMIT AN AUTHORIZED DOMESTIC  INSURER  TO  SUBMIT  A
 LIMITED  ANNUAL  GROUP  CAPITAL CALCULATION, IN ACCORDANCE WITH CRITERIA
 SET FORTH IN A REGULATION. AN AUTHORIZED  DOMESTIC  INSURER  ALSO  SHALL
 FILE THE RESULTS OF AN ANNUAL LIQUIDITY STRESS TEST IN A FORM PRESCRIBED
 BY THE SUPERINTENDENT IF REQUIRED PURSUANT TO A REGULATION.
   (2)  NO  INSURER,  INSURANCE  PRODUCER,  OR OTHER PERSON SHALL MAKE OR
 ISSUE IN THIS STATE ANY ADVERTISEMENT, SIGN, PAMPHLET,  CIRCULAR,  CARD,
 OR  OTHER PUBLIC ANNOUNCEMENT PURPORTING TO MAKE KNOWN THE GROUP CAPITAL
 CALCULATION, GROUP CAPITAL  RATIO,  LIQUIDITY  STRESS  TEST  RESULTS  OR
 SUPPORTING  DISCLOSURES  FOR  SUCH TEST, OR ANY COMPONENT DERIVED IN THE
 CALCULATION THEREOF, OF ANY AUTHORIZED DOMESTIC  INSURER  OR  SUBSIDIARY
 THEREOF,  PROVIDED,  HOWEVER,  THAT  AN  AUTHORIZED DOMESTIC INSURER MAY
 REBUT ANY MATERIALLY FALSE STATEMENT WITH RESPECT TO THE FOREGOING  WITH
 THE SUPERINTENDENT'S PRIOR APPROVAL.
   § 8. Section 1612 of the insurance law is amended to read as follows:
   § 1612. Regulations.  (A) In addition to the powers expressly given by
 this article, the superintendent shall have  the  power  to  promulgate,
 from time to time, such regulations, not inconsistent with this chapter,
 as may be appropriate to carry out this article and, insofar as applica-
 ble to this article, other provisions of this chapter.
   (B) THE SUPERINTENDENT ALSO MAY PROMULGATE REGULATIONS:
   (1) REQUIRING AN AUTHORIZED DOMESTIC INSURER DEEMED BY THE SUPERINTEN-
 DENT  TO BE IN A HAZARDOUS FINANCIAL CONDITION OR A CONDITION THAT WOULD
 BE GROUNDS FOR A PROCEEDING UNDER ARTICLE SEVENTY-FOUR OF THIS  CHAPTER,
 TO SECURE AND MAINTAIN A DEPOSIT OR BOND FOR CERTAIN TRANSACTIONS WITH A
 SUBSIDIARY;
   (2)  REQUIRING  A SUBSIDIARY THAT IS PARTY TO AN AGREEMENT OR CONTRACT
 WITH AN AUTHORIZED DOMESTIC INSURER TO BE SUBJECT TO THE JURISDICTION OF
 A. 10226                            4

 ANY PROCEEDING AGAINST THE DOMESTIC INSURER UNDER  ARTICLE  SEVENTY-FOUR
 OF  THIS CHAPTER AND TO THE SUPERINTENDENT, AS RECEIVER, FOR THE PURPOSE
 OF INTERPRETING, ENFORCING, AND OVERSEEING THE SUBSIDIARY'S  OBLIGATIONS
 UNDER  THE  AGREEMENT  OR  CONTRACT TO PERFORM SERVICES FOR THE DOMESTIC
 INSURER; AND
   (3) GOVERNING RECORDS AND  DATA  OF,  AND  PREMIUMS  AND  OTHER  FUNDS
 BELONGING TO, A DOMESTIC INSURER THAT ARE HELD BY A SUBSIDIARY.
   §  9. The insurance law is amended by adding two new sections 1613 and
 1614 to read as follows:
   § 1613. EXPENSES FOR GROUP-WIDE SUPERVISION.  AN  AUTHORIZED  DOMESTIC
 INSURER SHALL BE LIABLE FOR AND SHALL PAY THE REASONABLE EXPENSES OF THE
 SUPERINTENDENT'S  PARTICIPATION  IN  THE  ADMINISTRATION  OF  GROUP-WIDE
 SUPERVISION OF INTERNATIONALLY ACTIVE INSURANCE  GROUPS,  INCLUDING  THE
 ENGAGEMENT  OF ATTORNEYS, ACTUARIES, AND ANY OTHER PROFESSIONALS AND ALL
 REASONABLE TRAVEL EXPENSES.
   § 1614. CONFIDENTIALITY OF REPORTS AND FILINGS.  THE CONTENTS OF  EACH
 REPORT  AND  FILING  SUBMITTED  PURSUANT TO THIS ARTICLE AND INFORMATION
 PERTAINING THERETO SHALL BE KEPT CONFIDENTIAL, SHALL NOT BE  SUBJECT  TO
 SUBPOENA  OR  DISCOVERY,  SHALL  NOT  BE  ADMISSIBLE  IN EVIDENCE IN ANY
 PRIVATE CIVIL ACTION, AND SHALL NOT BE MADE PUBLIC UNLESS, AFTER  NOTICE
 AND  OPPORTUNITY  TO  BE  HEARD,  THE SUPERINTENDENT DETERMINES THAT THE
 INTERESTS OF POLICYHOLDERS, SUBSCRIBERS, STOCKHOLDERS OR THE PUBLIC WILL
 BE SERVED BY THE PUBLICATION THEREOF.
   § 10. Section 1709 of the insurance law, as amended by chapter 381  of
 the laws of 1986, is amended to read as follows:
   § 1709. Confidentiality  of  [information]  reports  AND  FILINGS. The
 contents of each  [information]  report  [filed  hereunder]  AND  FILING
 SUBMITTED  PURSUANT  TO  THIS ARTICLE and information pertaining thereto
 shall be kept confidential, shall not be subject to subpoena OR  DISCOV-
 ERY,  SHALL  NOT  BE ADMISSIBLE IN EVIDENCE IN ANY PRIVATE CIVIL ACTION,
 and shall not be made public unless, after notice and opportunity to  be
 heard,  the  superintendent determines that the interests of policyhold-
 ers, subscribers, stockholders or the  public  will  be  served  by  the
 publication  thereof. The provisions of this section shall not be appli-
 cable to any [information] report [filed hereunder] OR FILING  SUBMITTED
 PURSUANT  TO THIS ARTICLE and any information pertaining thereto, if the
 parent corporation is a corporation subject to  article  forty-three  of
 this chapter.
   § 11. Subsection (a) of section 1710 of the insurance law, as added by
 chapter 238 of the laws of 2013, is amended to read as follows:
   (a)  Any parent corporation seeking to divest its controlling interest
 in a domestic insurer, in any manner, shall file  with  the  superinten-
 dent,  with a copy to the insurer, notice of its proposed divestiture at
 least thirty days prior to the cessation of control,  PROVIDED,  HOWEVER
 THAT  THIS  SUBSECTION SHALL NOT APPLY IF NOTICE IS PROVIDED AS REQUIRED
 BY SUBSECTION (B) OF SECTION ONE THOUSAND  SEVEN  HUNDRED  ONE  OF  THIS
 ARTICLE.
   § 12. Section 1716 of the insurance law is amended to read as follows:
   §  1716. Regulations. (A) In addition to the powers expressly given by
 this article, the superintendent shall have  the  power  to  promulgate,
 from   time  to  time,  such  regulations,  not  inconsistent  with  the
 provisions of this chapter, as may  be  appropriate  to  carry  out  the
 provisions  of  this article and, insofar as applicable to this article,
 other provisions of this chapter.
   (B) THE SUPERINTENDENT ALSO MAY PROMULGATE REGULATIONS:
 A. 10226                            5

   (1) REQUIRING A PARENT CORPORATION DEEMED BY THE SUPERINTENDENT TO  BE
 IN  A HAZARDOUS FINANCIAL CONDITION OR A CONDITION THAT WOULD BE GROUNDS
 FOR A PROCEEDING UNDER ARTICLE SEVENTY-FOUR OF THIS CHAPTER,  TO  SECURE
 AND  MAINTAIN  A DEPOSIT OR BOND FOR CERTAIN TRANSACTIONS WITH A SUBSID-
 IARY;
   (2)  REQUIRING  A SUBSIDIARY THAT IS PARTY TO AN AGREEMENT OR CONTRACT
 WITH A PARENT CORPORATION TO BE  SUBJECT  TO  THE  JURISDICTION  OF  ANY
 PROCEEDING  AGAINST THE PARENT CORPORATION UNDER ARTICLE SEVENTY-FOUR OF
 THIS CHAPTER AND TO THE SUPERINTENDENT, AS RECEIVER, FOR THE PURPOSE  OF
 INTERPRETING,  ENFORCING,  AND  OVERSEEING  THE SUBSIDIARY'S OBLIGATIONS
 UNDER THE AGREEMENT OR CONTRACT  TO  PERFORM  SERVICES  FOR  THE  PARENT
 CORPORATION; AND
   (3)  GOVERNING  RECORDS  AND  DATA  OF,  AND  PREMIUMS AND OTHER FUNDS
 BELONGING TO, A PARENT CORPORATION THAT ARE HELD BY A SUBSIDIARY.
   § 13. Section 1717 of the insurance law is amended  by  adding  a  new
 subsection (c) to read as follows:
   (C) (1) A PARENT CORPORATION, OTHER THAN A PARENT CORPORATION REQUIRED
 TO  REGISTER  AS  A  CONTROLLED INSURER PURSUANT TO SECTION ONE THOUSAND
 FIVE HUNDRED THREE OF THIS CHAPTER, SHALL FILE WITH  THE  SUPERINTENDENT
 AN ANNUAL GROUP CAPITAL CALCULATION AND THE RESULTS OF AN ANNUAL LIQUID-
 ITY  STRESS  TEST  IN A FORM PRESCRIBED BY THE SUPERINTENDENT, PROVIDED,
 HOWEVER, THAT THE SUPERINTENDENT MAY EXEMPT A  PARENT  CORPORATION  FROM
 FILING  AN  ANNUAL GROUP CAPITAL CALCULATION OR THE RESULTS OF AN ANNUAL
 LIQUIDITY STRESS TEST, OR PERMIT A PARENT CORPORATION TO SUBMIT A LIMIT-
 ED ANNUAL GROUP CAPITAL CALCULATION, IN  ACCORDANCE  WITH  CRITERIA  SET
 FORTH IN A REGULATION.
   (2)  NO  INSURER,  INSURANCE  PRODUCER,  OR OTHER PERSON SHALL MAKE OR
 ISSUE IN THIS STATE ANY ADVERTISEMENT, SIGN, PAMPHLET,  CIRCULAR,  CARD,
 OR  OTHER PUBLIC ANNOUNCEMENT PURPORTING TO MAKE KNOWN THE GROUP CAPITAL
 CALCULATION, GROUP CAPITAL  RATIO,  LIQUIDITY  STRESS  TEST  RESULTS  OR
 SUPPORTING  DISCLOSURES  FOR  SUCH TEST, OR ANY COMPONENT DERIVED IN THE
 CALCULATION THEREOF, OF ANY PARENT CORPORATION  OR  SUBSIDIARY  THEREOF,
 PROVIDED,  HOWEVER,  THAT  A PARENT CORPORATION MAY REBUT ANY MATERIALLY
 FALSE STATEMENT WITH RESPECT TO THE FOREGOING WITH THE  SUPERINTENDENT'S
 PRIOR APPROVAL.
   §  14.  The  insurance  law is amended by adding a new section 1718 to
 read as follows:
   § 1718. EXPENSES FOR  GROUP-WIDE  SUPERVISION.  A  PARENT  CORPORATION
 SHALL  BE LIABLE FOR AND SHALL PAY THE REASONABLE EXPENSES OF THE SUPER-
 INTENDENT'S PARTICIPATION IN THE  ADMINISTRATION  OF  GROUP-WIDE  SUPER-
 VISION OF INTERNATIONALLY ACTIVE INSURANCE GROUPS, INCLUDING THE ENGAGE-
 MENT  OF  ATTORNEYS,  ACTUARIES,  AND  ANY  OTHER  PROFESSIONALS AND ALL
 REASONABLE TRAVEL EXPENSES.
   § 15. This act shall take effect immediately.