Last month, the New York Department of Financial Services (“NYDFS”) proposed an amendment to 11 NYCRR 80-1.6 (the “Regulation”), which would augment the application process to acquire a domestic insurer by potentially limiting the amount of information that must be provided in connection therewith.
The proposals to the Regulation allow for an applicant filing a Form A for acquisition of a New York insurance carrier to apply for an exemption from providing certain required information. In particular, an executive officer or director of the applicant may apply for an exemption from filing a balance sheet and consolidated statements of income and surplus if such documents would not be relevant in determining the financial condition of the applicant. Of course, the NYDFS had discretion to accept or reject such application for exemption. In addition, minor additional changes are proposed to the Regulation as well, including changing certain references from “controlled person” to “significant person”.
The proposals to the Regulation are currently open for public comment. We will continue to report on any updates.