(b) The following transactions between a parent corporation and any
subsidiary may not be entered into unless the parent corporation 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, extensions of credit, or
investments with a subsidy, provided the transactions are equal to or
exceed:
(A) three percent of the parent corporation's admitted assets at last
year-end, with regard to a domestic life insurance company; or
(B) the lesser of three percent of the parent corporation's admitted
assets or twenty-five percent of capital and surplus at last year-end,
with regard to a domestic corporation subject to article forty-three of
this chapter; or
(2) loans or extensions of credit to any person who is not a
subsidiary, where the parent corporation makes loans or extensions of
credit with the agreement or understanding that the proceeds of such
transactions, in whole or in substantial part, are to be used to make
loans or extensions of credit to, purchase assets of, or make
investments in, any subsidiary of the parent corporation making the
loans or extensions of credit, provided the transactions are equal to or
exceed:
(A) three percent of the parent corporation's admitted assets at last
year-end, with regard to a domestic life insurance company; or
(B) the lesser of three percent of the parent corporation's admitted
assets or twenty-five percent of capital and surplus at last year-end,
with regard to a domestic corporation subject to article forty-three of
this chapter; or
(3) reinsurance treaties or agreements with a subsidiary that the
parent corporation has not otherwise submitted to the superintendent.
This shall include agreements that may require, as consideration, the
transfer of assets from a parent corporation to a non-subsidiary, if an
agreement or understanding exists between the parent corporation and
non-subsidiary that any portion of the assets will be transferred to one
or more subsidiaries of the parent corporation; and
(4) management agreements, service contracts, tax allocation
agreements, guarantees, and all cost-sharing arrangements.
Structure New York Laws
Article 17 - Subsidiaries of Domestic Life Insurance Companies and Certain Other Entities
1701 - Authority to Invest in Subsidiaries; Businesses of Subsidiaries.
1703 - Standard of Care for Investments in Subsidiaries.
1704 - Exemptions Applicable to Subsidiaries; Limitations Generally.
1705 - Quantitative Limitations.
1706 - Exemptions Applicable to Parent Corporation.
1707 - Regulations to Restrict Pyramiding.
1709 - Confidentiality of Information Reports.
1710 - Divestiture of Control; Superintendent's Power to Order Disposition of Subsidiaries.
1711 - Subsidiary's Name Not to Mislead.
1712 - Relationships and Transactions Between Parent Corporation and Subsidiary.
1713 - Prohibitions on Investments of Subsidiaries.
1714 - Authority to Conduct Certain Business Directly Instead of Through Subsidiary.