§ 1218. Regulation of stock ownership, interlocking directors and
common management. (a) Any domestic insurer and any foreign or alien
insurer authorized to do business in this state may retain, invest in or
acquire all or any shares, or, by contract of reinsurance or otherwise,
acquire the whole or a substantial part of the assets, of any other
insurer, or have a common management with any other insurer, unless such
retention, investment, acquisition or common management is inconsistent
with any other provision of this chapter or unless the effect thereof:

(1) in the case of a domestic or alien insurer, may be substantially
to lessen competition in any line of commerce in insurance in any
section of the country or to tend to create a monopoly therein, or

(2) in the case of a foreign insurer, may be substantially to lessen
competition in any line of commerce in insurance in this state or to
tend to create a monopoly therein.

(b) No person shall serve as a director of two or more insurers under
this chapter which are or during the next preceding two years have been
engaged in writing directly the same lines of commerce in insurance
unless such interlocking directorate is not used as a means to
substantially lessen competition generally in the business of insurance
or create a monopoly therein, but any person otherwise qualified may be
a director of two or more insurers having a common ownership or
management which is not otherwise proscribed if such interlocking
directorate is not used as a means of substantially lessening
competition generally in the business of insurance or of creating a
monopoly therein.

(c) (1) Whenever the superintendent believes this section is being
violated, the superintendent shall serve upon the insurer or insurers
and the director or directors, as the case may be, a notice pursuant to
section three hundred four of the financial services law of a hearing
before the superintendent to be held not less than thirty days after
such service and requiring such insurer or insurers and such director or
directors, as the case may be, to show cause why an order should not be
made by the superintendent directing such insurer or insurers and such
director or directors, as the case may be, to cease and desist from such
violation.

(2) If, upon such hearing, the superintendent finds a violation of
this section he shall issue and cause to be served upon each such
insurer or insurers and such director or directors, as the case may be,
an order reciting the facts found by him, and setting forth the respects
in which there has been a violation, and directing such insurer or
insurers and such director or directors, as the case may be, to cease
and desist from such violation and he may in such order direct each such
insurer to divest itself of the shares or assets held or to rid itself
of the directors serving contrary to the provisions of subsection (a) or
(b) of this section.

(3) A violation of any such cease and desist order shall, subject to
judicial review, be deemed a violation of this chapter.

(4) The attorney general may maintain a proceeding upon his own
information to prevent and restrain violations of this section and the
judgment therein against any defendant may grant affirmative relief to
the same extent as may the superintendent by an order issued pursuant to
this section.

(5) Any person, firm, corporation or association shall be entitled to
maintain a proceeding to obtain injunctive relief against loss or
damages by a violation of this section at whatever time and under the
same conditions and principles as when injunctive relief against conduct
that will cause loss or damage is granted by the courts under the laws
of this state governing such proceedings. In such proceeding, the
plaintiff also may recover the damages sustained by him and the cost of
suit, including a reasonable attorney's fee.

(d) Nothing contained in this section shall be deemed to alter or
abridge any rights or remedies otherwise available to any person, the
superintendent and the attorney general under any law of this state.