S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7356--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 18, 2023
                                ___________
 
 Introduced by M. of A. WEPRIN -- read once and referred to the Committee
   on  Insurance  --  reported  and referred to the Committee on Codes --
   committee discharged, bill amended, ordered reprinted as  amended  and
   recommitted to said committee
 
 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) and subsection (b) of
 section  110  of the insurance law, paragraphs 1 and 2 of subsection (a)
 as amended by chapter 238 of the laws of  2013  and  subsection  (b)  as
 added  by  chapter  687  of  the  laws  of  2003, 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 NEW YORK LIQUIDATION BUREAU, 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 international law enforcement authori-
 ties, including members of any supervisory college described in  section
 three  hundred  two of this chapter, provided that the recipient has the
 authority and agrees to  maintain  the  confidentiality  and  privileged
 status  of  the document, material or other information AND HAS VERIFIED
 IN WRITING THE LEGAL AUTHORITY TO  MAINTAIN  CONFIDENTIALITY;  provided,
 however,  that  this paragraph shall not be construed as limiting access
 to records pursuant to article six of the public officers law, EXCEPT AS
 PROVIDED IN PARAGRAPH THREE OF SUBSECTION (B) OF THIS SECTION;
   (2) may receive documents, materials or information, including  other-
 wise confidential [and], privileged, AND TRADE SECRET documents, materi-
 als  or  information,  from  THE  NEW  YORK LIQUIDATION BUREAU, FROM the
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08515-06-3
              

 A. 7356--A                          2
 
 National Association  of  Insurance  Commissioners,  its  affiliates  or
 subsidiaries  [and],  from  regulatory  and law enforcement officials of
 other foreign or domestic jurisdictions, including members of any super-
 visory  college  described in section three hundred two of this chapter,
 AND FROM ANY OTHER ENTITY DESIGNATED BY THE SUPERINTENDENT  IN  A  REGU-
 LATION,  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 of the jurisdiction that
 is the source of the document, material or information; and
   (b)  (1)  No  waiver of any applicable privilege or claim of confiden-
 tiality in the documents, materials, or information  shall  occur  as  a
 result  of  disclosure  to the superintendent under this section or as a
 result of sharing as authorized in this section.
   (2) THE SHARING OF DOCUMENTS, MATERIALS, OR INFORMATION BY THE  SUPER-
 INTENDENT  PURSUANT TO THIS SECTION SHALL NOT CONSTITUTE A DELEGATION OF
 REGULATORY AUTHORITY OR RULEMAKING, AND  THE  SUPERINTENDENT  IS  SOLELY
 RESPONSIBLE  FOR  THE  ADMINISTRATION, EXECUTION, AND ENFORCEMENT OF THE
 PROVISIONS OF THIS SECTION.
   (3) DOCUMENTS, MATERIALS, OR OTHER INFORMATION IN  THE  POSSESSION  OR
 CONTROL OF THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS OR THIRD-
 PARTY  CONSULTANTS PURSUANT TO THIS SECTION SHALL BE CONFIDENTIAL BY LAW
 AND PRIVILEGED, SHALL NOT BE SUBJECT TO ARTICLE SIX OF THE PUBLIC  OFFI-
 CERS  LAW, SHALL NOT BE SUBJECT TO SUBPOENA, AND SHALL NOT BE SUBJECT TO
 DISCOVERY OR ADMISSIBLE IN EVIDENCE IN ANY PRIVATE CIVIL ACTION.
   § 2. Subsection (a) of section 1501 of the insurance law is amended by
 adding four new paragraphs 8, 9, 10 and 11 to read as follows:
   (8) "GROUP CAPITAL CALCULATION INSTRUCTIONS" MEANS THE  GROUP  CAPITAL
 CALCULATION  INSTRUCTIONS  AS  ADOPTED BY THE NAIC AND AS AMENDED BY THE
 NAIC FROM TIME TO TIME IN ACCORDANCE WITH THE PROCEDURES ADOPTED BY  THE
 NAIC,  EXCEPT  WHERE  SUCH  INSTRUCTIONS  CONFLICT WITH THE LAWS OF THIS
 STATE AND SUBJECT TO EXCEPTIONS THE SUPERINTENDENT MAY TAKE IN  A  REGU-
 LATION  UPON  A  WRITTEN FINDING THAT THE EXCEPTIONS WOULD NOT BE UNDULY
 BURDENSOME ON THE HOLDING COMPANY OR INSURER.
   (9) "NAIC" MEANS THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS.
   (10) "NAIC LIQUIDITY STRESS TEST FRAMEWORK" MEANS AN NAIC  PUBLICATION
 THAT INCLUDES A HISTORY OF THE NAIC'S DEVELOPMENT OF REGULATORY LIQUIDI-
 TY  STRESS  TESTING,  THE  SCOPE CRITERIA APPLICABLE FOR A SPECIFIC DATA
 YEAR, AND THE LIQUIDITY STRESS TEST INSTRUCTIONS AND REPORTING TEMPLATES
 FOR A SPECIFIC DATA YEAR, SUCH SCOPE CRITERIA, INSTRUCTIONS AND  REPORT-
 ING  TEMPLATE  BEING  AS  ADOPTED BY THE NAIC AND AS AMENDED BY THE NAIC
 FROM TIME TO TIME IN ACCORDANCE WITH THE PROCEDURES ADOPTED BY THE NAIC,
 EXCEPT WHERE SUCH INSTRUCTIONS CONFLICTS WITH THE LAWS OF THIS STATE AND
 SUBJECT TO EXCEPTIONS THE SUPERINTENDENT MAY TAKE IN A REGULATION UPON A
 WRITTEN FINDING THAT THE EXCEPTIONS WOULD NOT BE  UNDULY  BURDENSOME  ON
 THE HOLDING COMPANY OR INSURER.
   (11)  "SCOPE  CRITERIA" MEANS THE DESIGNATED EXPOSURE BASES ALONG WITH
 MINIMUM MAGNITUDES THEREOF FOR THE SPECIFIED DATA YEAR, USED  TO  ESTAB-
 LISH  A  PRELIMINARY  LIST  OF  INSURERS CONSIDERED SCOPED INTO THE NAIC
 LIQUIDITY STRESS TEST FRAMEWORK FOR THAT DATA YEAR.
   § 3. Section 1503 of the insurance law is amended by adding three  new
 subsections (c), (d) and (e) to read as follows:
   (C) (1) AN ULTIMATE HOLDING COMPANY SHALL FILE WITH THE SUPERINTENDENT
 AN  ANNUAL GROUP CAPITAL CALCULATION BY JUNE THIRTIETH OF EACH YEAR WHEN
 THIS STATE IS THE LEAD STATE OF THE HOLDING COMPANY SYSTEM AS DETERMINED
 IN ACCORDANCE WITH THE PROCEDURES WITHIN THE FINANCIAL ANALYSIS HANDBOOK
 ADOPTED BY THE NAIC, AS AMENDED FROM TIME TO TIME.  WHEN THE LEAD  STATE
 A. 7356--A                          3

 IS  NOT  THIS  STATE,  AN  ULTIMATE  HOLDING COMPANY SHALL FILE WITH THE
 SUPERINTENDENT THE ANNUAL GROUP CAPITAL CALCULATION AS  ADOPTED  BY  ITS
 LEAD  STATE  IF  THE ULTIMATE HOLDING COMPANY HAS FILED THE ANNUAL GROUP
 CAPITAL  CALCULATION WITH THE LEAD STATE BUT THE LEAD STATE IS NOT WILL-
 ING OR ABLE TO SHARE THE  ANNUAL  GROUP  CAPITAL  CALCULATION  WITH  THE
 SUPERINTENDENT.
   (2)  WHEN  THIS  STATE IS THE LEAD STATE, THE ULTIMATE HOLDING COMPANY
 SHALL COMPLETE THE ANNUAL GROUP CAPITAL CALCULATION IN  ACCORDANCE  WITH
 THE  GROUP CAPITAL CALCULATION INSTRUCTIONS, WHICH MAY PERMIT THE SUPER-
 INTENDENT TO ALLOW A HOLDING COMPANY THAT IS NOT  THE  ULTIMATE  HOLDING
 COMPANY TO FILE THE ANNUAL GROUP CAPITAL CALCULATION.
   (3)  WHEN  THIS  STATE  IS THE LEAD STATE, AN ULTIMATE HOLDING COMPANY
 SHALL BE EXEMPT FROM FILING AN ANNUAL GROUP CAPITAL CALCULATION IF IT IS
 PART OF A HOLDING COMPANY SYSTEM THAT:
   (A) HAS ONLY ONE INSURER WITHIN ITS SYSTEM THAT ONLY  WRITES  BUSINESS
 AND  IS ONLY LICENSED IN ITS DOMESTIC STATE AND ASSUMES NO BUSINESS FROM
 ANY OTHER INSURER;
   (B) IS REQUIRED TO PERFORM A GROUP CAPITAL  CALCULATION  SPECIFIED  BY
 THE UNITED STATES FEDERAL RESERVE BOARD, EXCEPT THAT THE HOLDING COMPANY
 SHALL  NOT  BE  EXEMPT  IF THE SUPERINTENDENT REQUESTS THE GROUP CAPITAL
 CALCULATION FROM THE UNITED STATES FEDERAL RESERVE BOARD UNDER THE TERMS
 OF INFORMATION SHARING AGREEMENTS IN  EFFECT  AND  THE  FEDERAL  RESERVE
 BOARD CANNOT SHARE THE CALCULATION WITH THE SUPERINTENDENT;
   (C)  HAS  A  NON-UNITED  STATES  GROUP-WIDE SUPERVISOR THAT IS LOCATED
 WITHIN A RECIPROCAL JURISDICTION, AS DESCRIBED IN PART ONE HUNDRED TWEN-
 TY-FIVE OF TITLE ELEVEN OF THE OFFICIAL COMPILATION OF CODES, RULES  AND
 REGULATIONS OF THIS STATE, THAT RECOGNIZES THE UNITED STATES STATE REGU-
 LATORY APPROACH TO GROUP SUPERVISION AND GROUP CAPITAL; OR
   (D)(I)  PROVIDES INFORMATION TO THE SUPERINTENDENT, EITHER DIRECTLY OR
 INDIRECTLY THROUGH THE GROUP-WIDE SUPERVISOR, WHO  HAS  DETERMINED  SUCH
 INFORMATION  IS  SATISFACTORY TO ALLOW THE SUPERINTENDENT TO COMPLY WITH
 THE NAIC GROUP SUPERVISION APPROACH, AS DETAILED IN THE  NAIC  FINANCIAL
 ANALYSIS HANDBOOK; AND
   (II)  HAS  A  NON-UNITED STATES GROUP-WIDE SUPERVISOR THAT IS NOT IN A
 RECIPROCAL JURISDICTION THAT RECOGNIZES AND ACCEPTS, AS SPECIFIED BY THE
 SUPERINTENDENT IN A REGULATION, THE GROUP  CAPITAL  CALCULATION  AS  THE
 WORLD-WIDE  GROUP  CAPITAL  ASSESSMENT FOR UNITED STATES HOLDING COMPANY
 SYSTEMS THAT OPERATE IN THAT JURISDICTION.
   (4) NOTWITHSTANDING SUBPARAGRAPHS (C) AND (D) OF  PARAGRAPH  THREE  OF
 THIS  SUBSECTION,  WHEN THIS STATE IS THE LEAD STATE, THE SUPERINTENDENT
 SHALL REQUIRE THE GROUP CAPITAL CALCULATION FOR UNITED STATES OPERATIONS
 OF ANY NON-UNITED STATES-BASED HOLDING COMPANY SYSTEM WHERE,  AFTER  ANY
 NECESSARY CONSULTATION WITH OTHER SUPERVISORS OR OFFICIALS, IT IS DEEMED
 APPROPRIATE  BY THE SUPERINTENDENT FOR PRUDENTIAL OVERSIGHT AND SOLVENCY
 MONITORING PURPOSES OR FOR ENSURING THE COMPETITIVENESS OF THE INSURANCE
 MARKETPLACE.
   (5) NOTWITHSTANDING THE  EXEMPTIONS  FROM  FILING  THE  GROUP  CAPITAL
 CALCULATION  SET  FORTH IN PARAGRAPH THREE OF THIS SUBSECTION, WHEN THIS
 STATE IS THE LEAD STATE, THE SUPERINTENDENT HAS THE DISCRETION TO EXEMPT
 A HOLDING COMPANY FROM FILING AN ANNUAL  GROUP  CAPITAL  CALCULATION  OR
 ACCEPT  A  LIMITED GROUP CAPITAL CALCULATION FILING OR REPORT IN ACCORD-
 ANCE WITH CRITERIA AS SPECIFIED BY THE SUPERINTENDENT IN A REGULATION.
   (6) WHEN THIS STATE IS THE LEAD STATE, IF  THE  SUPERINTENDENT  DETER-
 MINES THAT A HOLDING COMPANY NO LONGER MEETS ONE OR MORE OF THE REQUIRE-
 MENTS  FOR  AN EXEMPTION FROM FILING THE GROUP CAPITAL CALCULATION UNDER
 THIS SUBSECTION, THE HOLDING COMPANY SHALL FILE THE GROUP CAPITAL CALCU-
 A. 7356--A                          4
 
 LATION AT THE NEXT ANNUAL FILING DATE UNLESS GIVEN AN EXTENSION  BY  THE
 SUPERINTENDENT BASED ON REASONABLE GROUNDS SHOWN.
   (D)(1)  AN  ULTIMATE  HOLDING COMPANY THAT   DIRECTLY   OR  INDIRECTLY
 CONTROLS  AN INSURER SUBJECT TO REGISTRATION AND THAT IS SCOPED INTO THE
 NAIC LIQUIDITY STRESS TEST FRAMEWORK SHALL FILE THE RESULTS OF A SPECIF-
 IC YEAR'S ANNUAL LIQUIDITY STRESS TEST WITH THE SUPERINTENDENT WHEN THIS
 STATE IS THE LEAD STATE OF THE HOLDING COMPANY SYSTEM AS  DETERMINED  BY
 THE  PROCEDURES  WITHIN  THE  FINANCIAL ANALYSIS HANDBOOK ADOPTED BY THE
 NAIC AND AS AMENDED FROM TIME TO TIME.
   (2) WHEN THE LEAD STATE IS NOT THIS STATE, AN ULTIMATE HOLDING COMPANY
 SHALL FILE WITH THE SUPERINTENDENT THE  RESULTS  OF  A  SPECIFIC  YEAR'S
 LIQUIDITY STRESS TEST AS ADOPTED BY ITS LEAD STATE IF THE ULTIMATE HOLD-
 ING COMPANY HAS FILED THE RESULTS WITH THE LEAD STATE BUT THE LEAD STATE
 IS NOT WILLING OR ABLE TO SHARE THE RESULTS WITH THE SUPERINTENDENT.
   (3)  WHEN THIS STATE IS THE LEAD STATE, THE PERFORMANCE OF, AND FILING
 OF THE RESULTS FROM, A  SPECIFIC  YEAR'S  LIQUIDITY  STRESS  TEST  SHALL
 COMPLY WITH THE NAIC LIQUIDITY STRESS TEST FRAMEWORK.
   (4) WHEN THIS STATE IS THE LEAD STATE, ANY CHANGE TO THE NAIC LIQUIDI-
 TY  STRESS TEST FRAMEWORK OR TO THE DATA YEAR FOR WHICH THE SCOPE CRITE-
 RIA ARE TO BE MEASURED SHALL BE EFFECTIVE ON JANUARY FIRST OF  THE  YEAR
 FOLLOWING THE CALENDAR YEAR WHEN SUCH CHANGES ARE ADOPTED.
   (5) WHEN THIS STATE IS THE LEAD STATE, AN INSURER MEETING AT LEAST ONE
 THRESHOLD OF THE SCOPE CRITERIA SHALL BE CONSIDERED SCOPED INTO THE NAIC
 LIQUIDITY  STRESS  TEST FRAMEWORK FOR THE SPECIFIED DATA YEAR UNLESS THE
 SUPERINTENDENT, IN CONSULTATION WITH THE NAIC FINANCIAL  STABILITY  TASK
 FORCE, OR ITS SUCCESSOR, DETERMINES THE INSURER SHALL NOT BE SCOPED INTO
 THE NAIC LIQUIDITY STRESS TEST FRAMEWORK FOR THAT DATA YEAR.
   (6)  WHEN THIS STATE IS THE LEAD STATE, AN INSURER THAT DOES NOT TRIG-
 GER AT LEAST ONE THRESHOLD OF THE SCOPE  CRITERIA  SHALL  BE  CONSIDERED
 SCOPED OUT OF THE NAIC LIQUIDITY STRESS TEST FRAMEWORK FOR THE SPECIFIED
 DATA  YEAR,  UNLESS  THE  SUPERINTENDENT,  IN CONSULTATION WITH THE NAIC
 FINANCIAL STABILITY TASK FORCE, OR ITS SUCCESSOR, DETERMINES THE INSURER
 SHALL BE SCOPED INTO THE NAIC LIQUIDITY STRESS TEST FRAMEWORK  FOR  THAT
 DATA YEAR.
   (7)  THE  SUPERINTENDENT,  IN  CONSULTATION  WITH  THE  NAIC FINANCIAL
 STABILITY TASK FORCE, OR ITS SUCCESSOR,  SHALL  ASSESS  THE  CONCERN  OF
 WISHING TO AVOID HAVING INSURERS SCOPED IN AND OUT OF THE NAIC LIQUIDITY
 STRESS  TEST  FRAMEWORK ON A FREQUENT BASIS AS PART OF THE DETERMINATION
 FOR AN INSURER.
   (E) NO INSURER,  INSURANCE  PRODUCER,  OR  OTHER  PERSON  SHALL  MAKE,
 PUBLISH,  DISSEMINATE,  CIRCULATE, ISSUE, OR PLACE BEFORE THE PUBLIC, OR
 CAUSE DIRECTLY OR INDIRECTLY TO BE MADE, PUBLISHED, DISSEMINATED, CIRCU-
 LATED, ISSUED, OR PLACED BEFORE THE PUBLIC, IN  THIS STATE, IN ANY NEWS-
 PAPER, MAGAZINE, OR OTHER PUBLICATION, OR  IN  THE  FORM  OF  A  NOTICE,
 CIRCULAR,  PAMPHLET,  LETTER, OR POSTER, OR OVER ANY RADIO OR TELEVISION
 STATION OR ANY  ELECTRONIC  MEANS  OF  COMMUNICATION  AVAILABLE  TO  THE
 PUBLIC, OR IN ANY OTHER WAY AS AN ADVERTISEMENT, ANNOUNCEMENT, OR STATE-
 MENT  CONTAINING  A REPRESENTATION OR STATEMENT WITH REGARD TO 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 PUBLISH, WITH  THE  SUPERINTENDENT'S  PRIOR
 APPROVAL,  AN  ANNOUNCEMENT  IN A WRITTEN PUBLICATION TO REBUT ANY MATE-
 RIALLY FALSE STATEMENT WITH RESPECT TO THE FOREGOING IF THE  INSURER  IS
 ABLE  TO  DEMONSTRATE  TO  THE SUPERINTENDENT WITH SUBSTANTIAL PROOF THE
 FALSITY OF SUCH STATEMENT OR INAPPROPRIATENESS, AS THE CASE MAY BE,  AND
 A. 7356--A                          5
 
 IF THE SOLE PURPOSE OF THE ANNOUNCEMENT IS TO REBUT THE MATERIALLY FALSE
 STATEMENT.
   §  4.  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) (1) The [superintendent shall keep the] contents  of  each  report
 AND FILING 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  oppor-
 tunity 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 exam-
 ined 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.
   (2) NEITHER THE SUPERINTENDENT NOR ANY PERSON WHO RECEIVED A REPORT OR
 FILING  MADE  PURSUANT  TO  THIS ARTICLE AND ANY INFORMATION OBTAINED IN
 CONNECTION THEREWITH, THROUGH EXAMINATION  OR  OTHERWISE,  WHILE  ACTING
 UNDER  THE  AUTHORITY  OF  THE  SUPERINTENDENT OR WITH WHOM SUCH REPORT,
 FILING, OR INFORMATION ARE SHARED PURSUANT TO  THIS  CHAPTER,  SHALL  BE
 PERMITTED  OR REQUIRED TO TESTIFY IN ANY PRIVATE CIVIL ACTION CONCERNING
 THE REPORT, FILING, OR INFORMATION.
   § 5. 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.
   § 6. The insurance law is amended by adding a new section 1511 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.
   § 7. 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.
   § 8. Section 1604 of the insurance law is amended by adding  four  new
 subsections (c), (d), (e) and (f) 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 BY JUNE THIRTIETH OF  EACH
 YEAR  WHEN THIS STATE IS THE LEAD STATE AS DETERMINED IN ACCORDANCE WITH
 A. 7356--A                          6
 
 THE PROCEDURES WITHIN THE FINANCIAL ANALYSIS  HANDBOOK  ADOPTED  BY  THE
 NAIC, AS AMENDED FROM TIME TO TIME.
   (2)  WHEN  THE  LEAD  STATE  IS NOT THIS STATE, AN AUTHORIZED DOMESTIC
 INSURER SHALL FILE WITH THE  SUPERINTENDENT  THE  ANNUAL  GROUP  CAPITAL
 CALCULATION  AS  ADOPTED  BY  ITS  LEAD STATE IF THE AUTHORIZED DOMESTIC
 INSURER HAS FILED THE ANNUAL GROUP CAPITAL  CALCULATION  WITH  THE  LEAD
 STATE  BUT  THE  LEAD  STATE  IS NOT WILLING OR ABLE TO SHARE THE ANNUAL
 GROUP CAPITAL CALCULATION WITH THE SUPERINTENDENT.
   (3) WHEN THIS STATE IS THE LEAD STATE, THE AUTHORIZED DOMESTIC INSURER
 SHALL COMPLETE THE ANNUAL GROUP CAPITAL CALCULATION IN  ACCORDANCE  WITH
 THE  GROUP CAPITAL CALCULATION INSTRUCTIONS, WHICH MAY PERMIT THE SUPER-
 INTENDENT TO ALLOW A SUBSIDIARY TO FILE THE ANNUAL GROUP CAPITAL  CALCU-
 LATION.
   (4)  WHEN THIS STATE IS THE LEAD STATE, AN AUTHORIZED DOMESTIC INSURER
 SHALL BE EXEMPT FROM FILING AN ANNUAL GROUP CAPITAL CALCULATION IF IT:
   (A) HAS ONLY ONE INSURER SUBSIDIARY THAT ONLY WRITES BUSINESS  AND  IS
 ONLY  LICENSED  IN  ITS  DOMESTIC STATE AND ASSUMES NO BUSINESS FROM ANY
 OTHER INSURER;
   (B) IS REQUIRED TO PERFORM A GROUP CAPITAL  CALCULATION  SPECIFIED  BY
 THE  UNITED  STATES  FEDERAL  RESERVE  BOARD, EXCEPT THAT THE AUTHORIZED
 DOMESTIC INSURER SHALL NOT BE EXEMPT IF THE SUPERINTENDENT REQUESTS  THE
 GROUP  CAPITAL  CALCULATION FROM THE UNITED STATES FEDERAL RESERVE BOARD
 UNDER THE TERMS OF INFORMATION SHARING  AGREEMENTS  IN  EFFECT  AND  THE
 FEDERAL  RESERVE BOARD CANNOT SHARE THE CALCULATION WITH THE SUPERINTEN-
 DENT;
   (C) HAS A NON-UNITED STATES  GROUP-WIDE  SUPERVISOR  THAT  IS  LOCATED
 WITHIN A RECIPROCAL JURISDICTION, AS DESCRIBED IN PART ONE HUNDRED TWEN-
 TY-FIVE  OF TITLE ELEVEN OF THE OFFICIAL COMPILATION OF CODES, RULES AND
 REGULATIONS OF THIS STATE, THAT RECOGNIZES THE UNITED STATES STATE REGU-
 LATORY APPROACH TO GROUP SUPERVISION AND GROUP CAPITAL; OR
   (D)(I) PROVIDES INFORMATION TO THE SUPERINTENDENT, EITHER DIRECTLY  OR
 INDIRECTLY  THROUGH  THE  GROUP-WIDE SUPERVISOR, WHO HAS DETERMINED SUCH
 INFORMATION IS SATISFACTORY TO ALLOW THE SUPERINTENDENT TO  COMPLY  WITH
 THE  NAIC  GROUP SUPERVISION APPROACH, AS DETAILED IN THE NAIC FINANCIAL
 ANALYSIS HANDBOOK; AND
   (II) HAS A NON-UNITED STATES GROUP-WIDE SUPERVISOR THAT IS  NOT  IN  A
 RECIPROCAL JURISDICTION AND THAT RECOGNIZES AND ACCEPTS, AS SPECIFIED BY
 THE SUPERINTENDENT IN A REGULATION, THE GROUP CAPITAL CALCULATION AS THE
 WORLD-WIDE GROUP CAPITAL ASSESSMENT FOR UNITED STATES SYSTEMS THAT OPER-
 ATE IN THAT JURISDICTION.
   (5)  NOTWITHSTANDING  SUBPARAGRAPHS  (C)  AND (D) OF PARAGRAPH FOUR OF
 THIS SUBSECTION, WHEN THIS STATE IS THE LEAD STATE,  THE  SUPERINTENDENT
 SHALL REQUIRE THE GROUP CAPITAL CALCULATION FOR UNITED STATES OPERATIONS
 OF ANY NON-UNITED STATES-BASED SYSTEM WHERE, AFTER ANY NECESSARY CONSUL-
 TATION  WITH OTHER SUPERVISORS OR OFFICIALS, IT IS DEEMED APPROPRIATE BY
 THE SUPERINTENDENT FOR  PRUDENTIAL  OVERSIGHT  AND  SOLVENCY  MONITORING
 PURPOSES  OR  FOR  ENSURING THE COMPETITIVENESS OF THE INSURANCE MARKET-
 PLACE.
   (6) NOTWITHSTANDING THE  EXEMPTIONS  FROM  FILING  THE  GROUP  CAPITAL
 CALCULATION  SET  FORTH  IN PARAGRAPH FOUR OF THIS SUBSECTION, WHEN THIS
 STATE IS THE LEAD STATE, THE SUPERINTENDENT HAS THE DISCRETION TO EXEMPT
 AN AUTHORIZED DOMESTIC INSURER  FROM  FILING  AN  ANNUAL  GROUP  CAPITAL
 CALCULATION  OR ACCEPT A LIMITED ANNUAL GROUP CAPITAL CALCULATION FILING
 OR REPORT IN ACCORDANCE WITH CRITERIA AS SPECIFIED BY THE SUPERINTENDENT
 IN A REGULATION.
 A. 7356--A                          7
 
   (7) WHEN THIS STATE IS THE LEAD STATE, IF  THE  SUPERINTENDENT  DETER-
 MINES THAT AN AUTHORIZED DOMESTIC INSURER NO LONGER MEETS ONE OR MORE OF
 THE  REQUIREMENTS  FOR AN EXEMPTION FROM FILING THE GROUP CAPITAL CALCU-
 LATION UNDER THIS SUBSECTION, THE AUTHORIZED DOMESTIC INSURER SHALL FILE
 THE  GROUP  CAPITAL  CALCULATION  AT  THE NEXT ANNUAL FILING DATE UNLESS
 GIVEN AN EXTENSION BY THE SUPERINTENDENT  BASED  ON  REASONABLE  GROUNDS
 SHOWN.
   (D)(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, THAT HAS A SUBSIDIARY THAT
 IS SCOPED INTO THE NAIC LIQUIDITY STRESS TEST FRAMEWORK SHALL  FILE  THE
 RESULTS  OF  A  SPECIFIC  YEAR'S  ANNUAL  LIQUIDITY STRESS TEST WITH THE
 SUPERINTENDENT WHEN THIS STATE IS THE LEAD STATE AS  DETERMINED  BY  THE
 PROCEDURES  WITHIN  THE  FINANCIAL ANALYSIS HANDBOOK ADOPTED BY THE NAIC
 AND AS AMENDED FROM TIME TO TIME.
   (2) WHEN THE LEAD STATE IS NOT  THIS  STATE,  AN  AUTHORIZED  DOMESTIC
 INSURER  SHALL  FILE  WITH  THE SUPERINTENDENT THE RESULTS OF A SPECIFIC
 YEAR'S LIQUIDITY STRESS TEST AS ADOPTED BY ITS LEAD STATE IF THE AUTHOR-
 IZED DOMESTIC INSURER HAS FILED THE RESULTS WITH THE LEAD STATE BUT  THE
 LEAD  STATE  IS NOT WILLING OR ABLE TO SHARE THE RESULTS WITH THE SUPER-
 INTENDENT.
   (3) WHEN THIS STATE IS THE LEAD STATE, THE PERFORMANCE OF, AND  FILING
 OF  THE  RESULTS  FROM,  A  SPECIFIC  YEAR'S LIQUIDITY STRESS TEST SHALL
 COMPLY WITH THE NAIC LIQUIDITY STRESS TEST FRAMEWORK.
   (4) WHEN THIS STATE IS THE LEAD STATE, ANY CHANGE TO THE NAIC LIQUIDI-
 TY STRESS TEST FRAMEWORK OR TO THE DATA YEAR FOR WHICH THE SCOPE  CRITE-
 RIA  ARE  TO BE MEASURED SHALL BE EFFECTIVE ON JANUARY FIRST OF THE YEAR
 FOLLOWING THE CALENDAR YEAR WHEN SUCH CHANGES ARE ADOPTED.
   (5) WHEN THIS STATE IS THE LEAD STATE, AN INSURER MEETING AT LEAST ONE
 THRESHOLD OF THE SCOPE CRITERIA SHALL BE CONSIDERED SCOPED INTO THE NAIC
 LIQUIDITY STRESS TEST FRAMEWORK FOR THE SPECIFIED DATA YEAR  UNLESS  THE
 SUPERINTENDENT,  IN  CONSULTATION WITH THE NAIC FINANCIAL STABILITY TASK
 FORCE, OR ITS SUCCESSOR, DETERMINES THE INSURER SHALL NOT BE SCOPED INTO
 THE NAIC LIQUIDITY STRESS TEST FRAMEWORK FOR THAT DATA YEAR.
   (6) WHEN THIS STATE IS THE LEAD STATE, AN INSURER THAT DOES NOT  TRIG-
 GER  AT  LEAST  ONE  THRESHOLD OF THE SCOPE CRITERIA SHALL BE CONSIDERED
 SCOPED OUT OF THE NAIC LIQUIDITY STRESS TEST FRAMEWORK FOR THE SPECIFIED
 DATA YEAR, UNLESS THE SUPERINTENDENT,  IN  CONSULTATION  WITH  THE  NAIC
 FINANCIAL STABILITY TASK FORCE, OR ITS SUCCESSOR, DETERMINES THE INSURER
 SHALL  BE  SCOPED INTO THE NAIC LIQUIDITY STRESS TEST FRAMEWORK FOR THAT
 DATA YEAR.
   (7) THE  SUPERINTENDENT,  IN  CONSULTATION  WITH  THE  NAIC  FINANCIAL
 STABILITY  TASK  FORCE,  OR  ITS  SUCCESSOR, SHALL ASSESS THE CONCERN OF
 WISHING TO AVOID HAVING INSURERS SCOPED IN AND OUT OF THE NAIC LIQUIDITY
 STRESS TEST FRAMEWORK ON A FREQUENT BASIS AS PART OF  THE  DETERMINATION
 FOR AN INSURER.
   (E)  NO  INSURER,  INSURANCE  PRODUCER,  OR  OTHER  PERSON SHALL MAKE,
 PUBLISH, DISSEMINATE, CIRCULATE, ISSUE, OR PLACE BEFORE THE  PUBLIC,  OR
 CAUSE DIRECTLY OR INDIRECTLY TO BE MADE, PUBLISHED, DISSEMINATED, CIRCU-
 LATED,  ISSUED, OR PLACED BEFORE THE PUBLIC, IN THIS STATE, IN A NEWSPA-
 PER, MAGAZINE, OR OTHER PUBLICATION, OR IN THE FORM OF A NOTICE,  CIRCU-
 LAR,  PAMPHLET,  LETTER,  OR  POSTER,  OR  OVER  ANY RADIO OR TELEVISION
 STATION OR ANY  ELECTRONIC  MEANS  OF  COMMUNICATION  AVAILABLE  TO  THE
 PUBLIC, OR IN ANY OTHER WAY AS AN ADVERTISEMENT, ANNOUNCEMENT, OR STATE-
 MENT  CONTAINING  A REPRESENTATION OR STATEMENT WITH REGARD TO THE GROUP
 CAPITAL CALCULATION, GROUP CAPITAL RATIO, LIQUIDITY STRESS TEST RESULTS,
 A. 7356--A                          8
 
 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 INSURER MAY PUBLISH, WITH THE SUPER-
 INTENDENT'S  PRIOR  APPROVAL,  ANNOUNCEMENTS IN A WRITTEN PUBLICATION TO
 REBUT ANY MATERIALLY FALSE STATEMENT WITH RESPECT TO  THE  FOREGOING  IF
 THE  INSURER  IS ABLE TO DEMONSTRATE TO THE SUPERINTENDENT WITH SUBSTAN-
 TIAL PROOF THE FALSITY OF SUCH STATEMENT OR  THE  INAPPROPRIATENESS,  AS
 THE CASE MAY BE, AND IF THE SOLE PURPOSE OF THE ANNOUNCEMENT IS TO REBUT
 THE MATERIALLY FALSE STATEMENT.
   (F) FOR THE PURPOSE OF THIS SECTION:
   (1)  "GROUP  CAPITAL CALCULATION INSTRUCTIONS" MEANS THE GROUP CAPITAL
 CALCULATION INSTRUCTIONS AS ADOPTED BY THE NAIC AND AS  AMENDED  BY  THE
 NAIC  FROM TIME TO TIME IN ACCORDANCE WITH THE PROCEDURES ADOPTED BY THE
 NAIC, EXCEPT WHERE SUCH INSTRUCTIONS CONFLICT  WITH  THE  LAWS  OF  THIS
 STATE  AND  SUBJECT TO EXCEPTIONS THE SUPERINTENDENT MAY TAKE IN A REGU-
 LATION UPON A WRITTEN FINDING THAT THE EXCEPTIONS WOULD  NOT  BE  UNDULY
 BURDENSOME ON THE DOMESTIC INSURER OR SUBSIDIARY.
   (2) "NAIC" MEANS THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS.
   (3)  "NAIC  LIQUIDITY STRESS TEST FRAMEWORK" MEANS AN NAIC PUBLICATION
 THAT INCLUDES A HISTORY OF THE NAIC'S DEVELOPMENT OF REGULATORY LIQUIDI-
 TY STRESS TESTING, THE SCOPE CRITERIA APPLICABLE  FOR  A  SPECIFIC  DATA
 YEAR, AND THE LIQUIDITY STRESS TEST INSTRUCTIONS AND REPORTING TEMPLATES
 FOR  A SPECIFIC DATA YEAR, SUCH SCOPE CRITERIA, INSTRUCTIONS AND REPORT-
 ING TEMPLATE BEING AS ADOPTED BY THE NAIC AND AS  AMENDED  BY  THE  NAIC
 FROM TIME TO TIME IN ACCORDANCE WITH THE PROCEDURES ADOPTED BY THE NAIC,
 EXCEPT  WHERE SUCH PUBLICATION CONFLICTS WITH THE LAWS OF THIS STATE AND
 SUBJECT TO EXCEPTIONS THE SUPERINTENDENT MAY TAKE IN A REGULATION UPON A
 WRITTEN FINDING THAT THE EXCEPTIONS WOULD NOT BE  UNDULY  BURDENSOME  ON
 THE DOMESTIC INSURER OR SUBSIDIARY.
   (4)  "SCOPE  CRITERIA"  MEANS THE DESIGNATED EXPOSURE BASES ALONG WITH
 MINIMUM MAGNITUDES THEREOF FOR THE SPECIFIED DATA YEAR, USED  TO  ESTAB-
 LISH  A  PRELIMINARY  LIST  OF  INSURERS CONSIDERED SCOPED INTO THE NAIC
 LIQUIDITY STRESS TEST FRAMEWORK FOR THAT DATA YEAR.
   § 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. NEITHER THE SUPERINTENDENT NOR ANY
 PERSON  WHO RECEIVED A REPORT OR FILING SUBMITTED PURSUANT TO THIS ARTI-
 CLE AND INFORMATION PERTAINING THERETO, THROUGH  EXAMINATION  OR  OTHER-
 WISE,  WHILE  ACTING  UNDER  THE AUTHORITY OF THE SUPERINTENDENT OR WITH
 WHOM SUCH REPORT OR INFORMATION ARE SHARED  PURSUANT  TO  THIS  CHAPTER,
 SHALL  BE  PERMITTED  OR REQUIRED TO TESTIFY IN ANY PRIVATE CIVIL ACTION
 CONCERNING THE REPORT, FILING, OR INFORMATION.
 A. 7356--A                          9
 
   § 10. The section heading of section 1702 of  the  insurance  law,  as
 amended  by  chapter  238  of  the  laws  of 2013, is amended to read as
 follows:
   [Meaning  of "subsidiary", "parent corporation" and "enterprise risk";
 certain types of subsidiaries defined] DEFINITIONS.
   § 11. Section 1702 of the insurance law is amended by adding four  new
 subsections (g), (h), (i) and (j) to read as follows:
   (G)  "GROUP  CAPITAL CALCULATION INSTRUCTIONS" MEANS THE GROUP CAPITAL
 CALCULATION INSTRUCTIONS AS ADOPTED BY THE NAIC AND AS  AMENDED  BY  THE
 NAIC  FROM TIME TO TIME IN ACCORDANCE WITH THE PROCEDURES ADOPTED BY THE
 NAIC, EXCEPT WHERE SUCH INSTRUCTIONS CONFLICT  WITH  THE  LAWS  OF  THIS
 STATE  AND  SUBJECT TO EXCEPTIONS THE SUPERINTENDENT MAY TAKE IN A REGU-
 LATION UPON A WRITTEN FINDING THAT THE EXCEPTIONS WOULD  NOT  BE  UNDULY
 BURDENSOME ON THE PARENT CORPORATION OR SUBSIDIARY.
   (H) "NAIC" MEANS THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS.
   (I)  "NAIC  LIQUIDITY STRESS TEST FRAMEWORK" MEANS AN NAIC PUBLICATION
 THAT INCLUDES A HISTORY OF THE NAIC'S DEVELOPMENT OF REGULATORY LIQUIDI-
 TY STRESS TESTING, THE SCOPE CRITERIA APPLICABLE  FOR  A  SPECIFIC  DATA
 YEAR, AND THE LIQUIDITY STRESS TEST INSTRUCTIONS AND REPORTING TEMPLATES
 FOR  A SPECIFIC DATA YEAR, SUCH SCOPE CRITERIA, INSTRUCTIONS AND REPORT-
 ING TEMPLATE BEING AS ADOPTED BY THE NAIC AND AS  AMENDED  BY  THE  NAIC
 FROM TIME TO TIME IN ACCORDANCE WITH THE PROCEDURES ADOPTED BY THE NAIC,
 EXCEPT  WHERE SUCH INSTRUCTIONS CONFLICT WITH THE LAWS OF THIS STATE AND
 SUBJECT TO EXCEPTIONS THE SUPERINTENDENT MAY TAKE IN A REGULATION UPON A
 WRITTEN FINDING THAT THE EXCEPTIONS WOULD NOT BE  UNDULY  BURDENSOME  ON
 THE PARENT CORPORATION OR SUBSIDIARY.
   (J)  "SCOPE  CRITERIA"  MEANS THE DESIGNATED EXPOSURE BASES ALONG WITH
 MINIMUM MAGNITUDES THEREOF FOR THE SPECIFIED DATA YEAR, USED  TO  ESTAB-
 LISH  A  PRELIMINARY  LIST  OF  INSURERS CONSIDERED SCOPED INTO THE NAIC
 LIQUIDITY STRESS TEST FRAMEWORK FOR THAT DATA YEAR.
   § 12. 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.  NEITHER THE SUPERINTENDENT NOR ANY PERSON WHO RECEIVED A
 REPORT OR FILING SUBMITTED PURSUANT  TO  THIS  ARTICLE  AND  INFORMATION
 PERTAINING THERETO, THROUGH EXAMINATION OR OTHERWISE, WHILE ACTING UNDER
 THE AUTHORITY OF THE SUPERINTENDENT OR WITH WHOM SUCH REPORT OR INFORMA-
 TION ARE SHARED PURSUANT TO THIS CHAPTER, SHALL BE PERMITTED OR REQUIRED
 TO TESTIFY IN ANY PRIVATE CIVIL ACTION CONCERNING THE REPORT, FILING, OR
 INFORMATION.
   § 13. 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
 A. 7356--A                         10
 
 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.
   §  14.  The  opening  paragraph  of  paragraph  1 of subsection (b) of
 section 1712 of the insurance law, as added by chapter 238 of  the  laws
 of 2013, is amended to read as follows:
   sales,  purchases,  exchanges, loans, extensions of credit, or invest-
 ments with a [subsidy] SUBSIDIARY, provided the transactions  are  equal
 to or exceed:
   § 15. Section 1717 of the insurance law is amended by adding three new
 subsections (c), (d) and (e) 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 BY JUNE THIRTIETH OF EACH YEAR WHEN
 THIS STATE IS THE LEAD STATE AS DETERMINED IN ACCORDANCE WITH THE PROCE-
 DURES WITHIN THE FINANCIAL ANALYSIS HANDBOOK ADOPTED  BY  THE  NAIC,  AS
 AMENDED FROM TIME TO TIME.
   (2)  WHEN THE LEAD STATE IS NOT THIS STATE, A PARENT CORPORATION SHALL
 FILE WITH THE SUPERINTENDENT THE ANNUAL  GROUP  CAPITAL  CALCULATION  AS
 ADOPTED BY ITS LEAD STATE IF THE PARENT CORPORATION HAS FILED THE ANNUAL
 GROUP  CAPITAL CALCULATION WITH THE LEAD STATE BUT THE LEAD STATE IS NOT
 WILLING OR ABLE TO SHARE THE ANNUAL GROUP CAPITAL CALCULATION  WITH  THE
 SUPERINTENDENT.
   (3)  WHEN  THIS  STATE IS THE LEAD STATE, THE PARENT CORPORATION SHALL
 COMPLETE THE ANNUAL GROUP CAPITAL CALCULATION  IN  ACCORDANCE  WITH  THE
 GROUP CAPITAL CALCULATION INSTRUCTIONS, WHICH MAY PERMIT THE SUPERINTEN-
 DENT TO ALLOW A SUBSIDIARY TO FILE THE ANNUAL GROUP CAPITAL CALCULATION.
   (4)  WHEN  THIS STATE IS THE LEAD STATE, A PARENT CORPORATION SHALL BE
 EXEMPT FROM FILING AN ANNUAL GROUP CAPITAL CALCULATION IF IT:
   (A) HAS ONLY ONE INSURER SUBSIDIARY THAT ONLY WRITES BUSINESS  AND  IS
 ONLY  LICENSED  IN  ITS  DOMESTIC STATE AND ASSUMES NO BUSINESS FROM ANY
 OTHER INSURER;
   (B) IS REQUIRED TO PERFORM A GROUP CAPITAL  CALCULATION  SPECIFIED  BY
 THE  UNITED  STATES FEDERAL RESERVE BOARD, EXCEPT THAT THE PARENT CORPO-
 RATION SHALL NOT BE EXEMPT IF  THE  SUPERINTENDENT  REQUESTS  THE  GROUP
 CAPITAL  CALCULATION  FROM THE UNITED STATES FEDERAL RESERVE BOARD UNDER
 THE TERMS OF INFORMATION SHARING AGREEMENTS IN EFFECT  AND  THE  FEDERAL
 RESERVE BOARD CANNOT SHARE THE CALCULATION WITH THE SUPERINTENDENT;
   (C)  HAS  A  NON-UNITED  STATES  GROUP-WIDE SUPERVISOR THAT IS LOCATED
 WITHIN A RECIPROCAL JURISDICTION, AS DESCRIBED IN PART ONE HUNDRED TWEN-
 TY-FIVE OF TITLE ELEVEN OF THE OFFICIAL COMPILATION OF CODES, RULES  AND
 REGULATIONS OF THIS STATE, THAT RECOGNIZES THE UNITED STATES STATE REGU-
 LATORY APPROACH TO GROUP SUPERVISION AND GROUP CAPITAL; OR
   (D)(I)  PROVIDES INFORMATION TO THE SUPERINTENDENT, EITHER DIRECTLY OR
 INDIRECTLY THROUGH THE GROUP-WIDE SUPERVISOR, WHO  HAS  DETERMINED  SUCH
 INFORMATION  IS  SATISFACTORY TO ALLOW THE SUPERINTENDENT TO COMPLY WITH
 THE NAIC GROUP SUPERVISION APPROACH, AS DETAILED IN THE  NAIC  FINANCIAL
 ANALYSIS HANDBOOK; AND
   (II)  HAS  A  NON-UNITED STATES GROUP-WIDE SUPERVISOR THAT IS NOT IN A
 RECIPROCAL JURISDICTION THAT RECOGNIZES AND ACCEPTS, AS SPECIFIED BY THE
 SUPERINTENDENT IN A REGULATION, THE GROUP  CAPITAL  CALCULATION  AS  THE
 WORLD-WIDE GROUP CAPITAL ASSESSMENT FOR UNITED STATES SYSTEMS THAT OPER-
 ATE IN THAT JURISDICTION.
 A. 7356--A                         11
 
   (5)  NOTWITHSTANDING  SUBPARAGRAPHS  (C)  AND (D) OF PARAGRAPH FOUR OF
 THIS SUBSECTION, WHEN THIS STATE IS THE LEAD STATE,  THE  SUPERINTENDENT
 SHALL REQUIRE THE GROUP CAPITAL CALCULATION FOR UNITED STATES OPERATIONS
 OF ANY NON-UNITED STATES-BASED SYSTEM WHERE, AFTER ANY NECESSARY CONSUL-
 TATION  WITH OTHER SUPERVISORS OR OFFICIALS, IT IS DEEMED APPROPRIATE BY
 THE SUPERINTENDENT FOR  PRUDENTIAL  OVERSIGHT  AND  SOLVENCY  MONITORING
 PURPOSES  OR  FOR  ENSURING THE COMPETITIVENESS OF THE INSURANCE MARKET-
 PLACE.
   (6) NOTWITHSTANDING THE  EXEMPTIONS  FROM  FILING  THE  GROUP  CAPITAL
 CALCULATION  SET  FORTH  IN PARAGRAPH FOUR OF THIS SUBSECTION, WHEN THIS
 STATE IS THE LEAD STATE, THE SUPERINTENDENT HAS THE DISCRETION TO EXEMPT
 A  PARENT  CORPORATION FROM FILING  AN  ANNUAL GROUP CAPITAL CALCULATION
 OR ACCEPT A LIMITED ANNUAL GROUP CAPITAL CALCULATION FILING OR REPORT IN
 ACCORDANCE WITH CRITERIA AS SPECIFIED BY THE SUPERINTENDENT IN  A  REGU-
 LATION.
   (7)  WHEN  THIS  STATE IS THE LEAD STATE, IF THE SUPERINTENDENT DETER-
 MINES THAT A PARENT CORPORATION NO LONGER  MEETS  ONE  OR  MORE  OF  THE
 REQUIREMENTS  FOR AN EXEMPTION FROM FILING THE GROUP CAPITAL CALCULATION
 UNDER THIS SUBSECTION, THE PARENT CORPORATION SHALL FILE THE GROUP CAPI-
 TAL CALCULATION AT THE NEXT ANNUAL FILING DATE UNLESS GIVEN AN EXTENSION
 BY THE SUPERINTENDENT BASED ON REASONABLE GROUNDS SHOWN.
   (D)(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, THAT HAS A SUBSIDIARY THAT IS SCOPED
 INTO THE NAIC LIQUIDITY STRESS TEST FRAMEWORK SHALL FILE THE RESULTS  OF
 A  SPECIFIC  YEAR'S  LIQUIDITY  STRESS TEST WITH THE SUPERINTENDENT WHEN
 THIS STATE IS THE LEAD STATE AS DETERMINED BY THE PROCEDURES WITHIN  THE
 FINANCIAL ANALYSIS HANDBOOK ADOPTED BY THE NAIC AND AS AMENDED FROM TIME
 TO TIME.
   (2)  WHEN THE LEAD STATE IS NOT THIS STATE, A PARENT CORPORATION SHALL
 FILE WITH THE SUPERINTENDENT THE RESULTS OF A SPECIFIC YEAR'S  LIQUIDITY
 STRESS  TEST  AS ADOPTED BY ITS LEAD STATE IF THE PARENT CORPORATION HAS
 FILED THE RESULTS WITH THE LEAD STATE BUT THE LEAD STATE IS NOT  WILLING
 OR ABLE TO SHARE THE RESULTS WITH THE SUPERINTENDENT.
   (3)  WHEN THIS STATE IS THE LEAD STATE, THE PERFORMANCE OF, AND FILING
 OF THE RESULTS FROM, A  SPECIFIC  YEAR'S  LIQUIDITY  STRESS  TEST  SHALL
 COMPLY WITH THE NAIC LIQUIDITY STRESS TEST FRAMEWORK.
   (4) WHEN THE LEAD STATE IS THIS STATE, ANY CHANGE TO THE NAIC LIQUIDI-
 TY  STRESS TEST FRAMEWORK OR TO THE DATA YEAR FOR WHICH THE SCOPE CRITE-
 RIA ARE TO BE MEASURED SHALL BE EFFECTIVE ON JANUARY FIRST OF  THE  YEAR
 FOLLOWING THE CALENDAR YEAR WHEN SUCH CHANGES ARE ADOPTED.
   (5) WHEN THIS STATE IS THE LEAD STATE, AN INSURER MEETING AT LEAST ONE
 THRESHOLD OF THE SCOPE CRITERIA SHALL BE CONSIDERED SCOPED INTO THE NAIC
 LIQUIDITY  STRESS  TEST FRAMEWORK FOR THE SPECIFIED DATA YEAR UNLESS THE
 SUPERINTENDENT, IN CONSULTATION WITH THE NAIC FINANCIAL  STABILITY  TASK
 FORCE, OR ITS SUCCESSOR, DETERMINES THE INSURER SHALL NOT BE SCOPED INTO
 THE NAIC LIQUIDITY STRESS TEST FRAMEWORK FOR THAT DATA YEAR.
   (6)  WHEN THIS STATE IS THE LEAD STATE, AN INSURER THAT DOES NOT TRIG-
 GER AT LEAST ONE THRESHOLD OF THE SCOPE  CRITERIA  SHALL  BE  CONSIDERED
 SCOPED OUT OF THE NAIC LIQUIDITY STRESS TEST FRAMEWORK FOR THE SPECIFIED
 DATA  YEAR,  UNLESS  THE  SUPERINTENDENT,  IN CONSULTATION WITH THE NAIC
 FINANCIAL STABILITY TASK FORCE, OR ITS SUCCESSOR, DETERMINES THE INSURER
 SHALL BE SCOPED INTO THE NAIC LIQUIDITY STRESS TEST FRAMEWORK  FOR  THAT
 DATA YEAR.
   (7)  THE  SUPERINTENDENT,  IN  CONSULTATION  WITH  THE  NAIC FINANCIAL
 STABILITY TASK FORCE, OR ITS SUCCESSOR,  SHALL  ASSESS  THE  CONCERN  OF
 A. 7356--A                         12
 
 WISHING TO AVOID HAVING INSURERS SCOPED IN AND OUT OF THE NAIC LIQUIDITY
 STRESS  TEST  FRAMEWORK ON A FREQUENT BASIS AS PART OF THE DETERMINATION
 FOR AN INSURER.
   (E)  NO  INSURER,  INSURANCE  PRODUCER,  OR  OTHER  PERSON SHALL MAKE,
 PUBLISH, DISSEMINATE, CIRCULATE, ISSUE, OR PLACE BEFORE THE  PUBLIC,  OR
 CAUSE DIRECTLY OR INDIRECTLY TO BE MADE, PUBLISHED, DISSEMINATED, CIRCU-
 LATED,  ISSUED, OR PLACED BEFORE THE PUBLIC, IN THIS STATE, IN A NEWSPA-
 PER, MAGAZINE, OR OTHER PUBLICATION, OR IN THE FORM OF A NOTICE,  CIRCU-
 LAR,  PAMPHLET,  LETTER,  OR  POSTER,  OR  OVER  ANY RADIO OR TELEVISION
 STATION OR ANY ELECTRONIC MEANS  OF  COMMUNICATION  AVAILABLE    TO  THE
 PUBLIC, OR IN ANY OTHER WAY AS AN ADVERTISEMENT, ANNOUNCEMENT, OR STATE-
 MENT  CONTAINING  A REPRESENTATION OR STATEMENT WITH REGARD TO 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
 PUBLISH, WITH THE SUPERINTENDENT'S PRIOR APPROVAL,  ANNOUNCEMENTS  IN  A
 WRITTEN PUBLICATION TO REBUT ANY MATERIALLY FALSE STATEMENT WITH RESPECT
 TO  THE  FOREGOING  IF  THE INSURER IS ABLE TO DEMONSTRATE TO THE SUPER-
 INTENDENT WITH SUBSTANTIAL PROOF THE FALSITY OF SUCH  STATEMENT  OR  THE
 INAPPROPRIATENESS,  AS  THE  CASE MAY BE, AND IF THE SOLE PURPOSE OF THE
 ANNOUNCEMENT IS TO REBUT THE MATERIALLY FALSE STATEMENT.
   § 16. 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.
   § 17. This act shall take effect immediately.