N.Y. Comp. Codes R. & Regs. tit. 11 § 78.4

Current through Register Vol. 46, No. 36, September 4, 2024

Section 78.4 - Additional provisions

(a) Within 60 days after the effective date of this Part, an insurer shall file with the superintendent relevant information identifying, supporting and justifying the value of, and the basis of valuation used in acordance with the provisions of section 78.3 of this Part for each of its noninsurer subsidiaries.

(b) Within 30 days after the acquisition of a noninsurer subsidiary, an insurer shall file with the superintendent relevant information identifying, supporting and justifying the value of, and the basis of valuation used in accordance with the provisions of section 78.3 of this Part for such subsidiary.

(c) A valuation basis used for a subsidiary shall thereafter be consistently used unless a change is substantiated as reasonable and on that basis is approved in writing by the superintendent.

(d) If a subsidiary is valued on the basis of paragraph (1) of subdivision (b) of section 78.3 of this Part and the books of the subsidiary are not audited at the time the valuation is included in the insurer's annual statement, the insurer shall thereafter report and explain the difference, if any, between the value of the subsidiary as reported in the annual statement and the value as determined by audit. Such report and explanation shall be made as soon as possible following such audit.

(e) If any subsidiary, which is not itself an insurance company, is valued other than on the basis of market value as defined in paragraph (3) of subdivision (b) of section 78.3 of this Part, there shall be deducted from the otherwise determined value a sum equal to the value claimed for any of its assets which would not constitute admitted assets for the insurer if held directly by the insurer, if such assets:

(1) are held by the subsidiary but used, under a lease arrangement or otherwise, significantly in the conduct of the insurer's business; or

(2) were acquired from or purchased for the benefit or use of the insurer by the subsidiary under circumstances that, in the opinion of the superintendent, support a finding that the primary purpose of such acquisition or purchase was the evasion or avoidance of section 1301 or 1302 of the Insurance Law.

N.Y. Comp. Codes R. & Regs. Tit. 11 § 78.4