§ 1702. Definitions. As used in this article: (a) "Subsidiary" means
subsidiaries of the types described in subsection (b) of section one
thousand seven hundred four of this article and subsidiaries acquired or
held under this article, section one thousand four hundred five or
section four thousand two hundred forty of this chapter, but shall not
include a subsidiary acquired or held under section one thousand four
hundred four of this chapter or a subsidiary acquired or held by an
insurer authorized to make investments by subsection (c) of section one
thousand four hundred three of this chapter.

(b) "Parent corporation" means a parent corporation of a type
described in subsection (a), (b) or (c) of section one thousand seven
hundred one of this article.

(c) "Holding company operating subsidiary" means a subsidiary (other
than a separate account subsidiary) engaged or organized to engage in
either or both of the following activities (1) the ownership and
management of other subsidiaries, and (2) the raising of capital (debt
or equity) that could be loaned to, or invested in, other subsidiaries
or loaned to the parent corporation, provided that any such subsidiary
may in addition engage in the ownership and management of assets
authorized as investments for the parent corporation.

(d) "Investment subsidiary" means a subsidiary (other than a separate
account subsidiary) engaged or organized to engage exclusively in the
ownership and management of assets (other than equity securities of
subsidiaries) authorized as investments for the parent corporation and
of other investment subsidiaries.

(e) "Separate account subsidiary" means a subsidiary acquired or held
under section four thousand two hundred forty of this chapter.

(f) "Enterprise risk" means any activity, circumstance, event, or
series of events involving one or more subsidiaries of a parent
corporation that, if not remedied promptly, is likely to have a material
adverse effect upon the financial condition or liquidity of the parent
corporation, including anything that would cause the parent
corporation's risk-based capital to fall into company action level as
set forth in section one thousand three hundred twenty-two of this
chapter, or that would cause further transaction of business to be
hazardous to the insurer's policyholders or creditors or the public.

(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
regulation 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
liquidity 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 reporting 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
establish a preliminary list of insurers considered scoped into the NAIC
liquidity stress test framework for that data year.