N.Y. Insurance Law 8020 – Transfers of subsidiaries
§ 8020. Transfers of subsidiaries. A reorganizing or reorganized insurer may transfer any one or more of its subsidiaries to the mutual holding company or to one or more persons owned or controlled by the mutual holding company, provided the reorganizing or reorganized insurer obtains the prior approval of the superintendent. Any such transfer may be made without consideration as a dividend or for consideration that may include obligations of the mutual holding company or obligations or preferred shares of a person owned or controlled by the mutual holding company. The superintendent shall approve each such proposed transfer if the superintendent finds it is fair and equitable. For a reorganizing insurer, the plan may provide for such transfer, in which case approval of the plan shall constitute approval by the superintendent pursuant to this section. The provisions of sections one thousand five hundred five and four thousand two hundred seven of this chapter shall not apply to any transfer of subsidiaries effected pursuant to this section but shall otherwise apply to the reorganized insurer and its affiliates in accordance with their terms. The provision of subparagraph (ii) of paragraph two of subsection (a) of section one thousand four hundred five of this chapter limiting the aggregate amount of investments in preferred shares of American institutions shall not apply to an investment by a reorganizing or reorganized insurer in such preferred shares received by it in consideration for a transfer pursuant to this section. For a reorganized insurer, the other provisions of this article, including, without limitation, the requirement of filing a plan of reorganization, shall not apply to the transfer of subsidiaries pursuant to this section.
Terms Used In N.Y. Insurance Law 8020
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Mutual holding company: means a corporation organized under section eight thousand seventeen of this article. See N.Y. Insurance Law 8001
- Person: means an individual, partnership, firm, association, corporation, joint-stock company, limited liability company, limited liability partnership, trust, government or governmental agency, state or political subdivision thereof, public or private corporation, board, association, estate, trustee or fiduciary, any similar entity or any combination of the foregoing acting in concert. See N.Y. Insurance Law 8001
- plan: means a plan adopted by a mutual life insurer in compliance with this article. See N.Y. Insurance Law 8001
- Reorganized insurer: means the stock life insurer into which a mutual life insurer has been reorganized in accordance with the provisions of this article. See N.Y. Insurance Law 8001
- Reorganizing insurer: means , in the case of a plan of reorganization of a mutual life insurer under this article, the mutual life insurer that is reorganizing pursuant to such plan. See N.Y. Insurance Law 8001