New York Laws
Article 15 - Holding Companies
1505 - Transactions Within a Holding Company System Affecting Controlled Insurers.

(1) the terms shall be fair and equitable;
(2) charges or fees for services performed shall be reasonable; and
(3) expenses incurred and payments received shall be allocated to the
insurer on an equitable basis in conformity with customary insurance
accounting practices consistently applied.
(b) The books, accounts and records of each party to all such
transactions shall be so maintained as to clearly and accurately
disclose the nature and details of the transactions including such
accounting information as is necessary to support the reasonableness of
the charges or fees to the respective parties.
(c) The superintendent's prior approval shall be required for the
following transactions between a domestic controlled insurer and any
person in its holding company system: sales, purchases, exchanges, loans
or extensions of credit, or investments, involving five percent or more
of the insurer's admitted assets at last year-end.
(d) The following transactions between a domestic controlled insurer
and any person in its holding company system may not be entered into
unless the insurer has notified the superintendent in writing of its
intention to enter into any such transaction at least thirty days prior
thereto, or with regard to reinsurance treaties or agreements at least
forty-five days prior thereto, or such shorter period as the
superintendent may permit, and the superintendent has not disapproved it
within such period:
(1) sales, purchases, exchanges, loans or extensions of credit, or
investments involving less than five percent of the insurer's admitted
assets at last year-end, provided the transactions are equal to or
exceed:
(A) the lesser of three percent of the insurer's admitted assets or
twenty-five percent of capital and surplus at last year-end, with regard
to an accident and health insurance company or a corporation subject to
article forty-three of this chapter;
(B) three percent of the insurer's admitted assets at last year-end,
with regard to a life insurance company; or
(C) the lesser of three percent of the insurer's admitted assets or
twenty-five percent of surplus to policyholders at last year-end, with
regard to an insurer other than as specified in subparagraphs (A) and
(B) of this paragraph;
(2) reinsurance treaties or agreements;
(3) rendering of services on a regular or systematic basis; or
(4) any material transaction, specified by regulation, that the
superintendent determines may adversely affect the interests of the
insurer's policyholders or shareholders.
Nothing herein contained shall be deemed to authorize or permit any
transaction that, in the case of a non-controlled insurer, would be
otherwise contrary to law.
(e) The superintendent, in reviewing transactions pursuant to
subsections (c) and (d) hereof, shall consider whether they comply with
the standards set forth in subsections (a) and (b) hereof and whether
they may adversely affect the interests of policyholders.
(f) This section shall not apply to transactions subject to article
sixteen or article seventeen or section one thousand four hundred eight
or any sections of this chapter which impose notice or approval
requirements greater than those in this section.