Insurance Law- Business and Investment Limitations – Authority of Foreign Life Insurer to Acquire a Fire and Casualty Subsidiary
Plaintiff, a Connecticut life insurer, proposed to acquire a controlling stock interest in a fire and casualty insurance company. The New York Superintendent of Insurance, supported by the state Attorney General, advised that plaintiff would thereby disqualify itself from doing business in the state under the business and investment limitations of the Insurance Law. Plaintiff sought a declaratory judgment that its proposal was permissible. The supreme court denied plaintiff’s motion for summary judgment, granted defendant’s cross-motion and dismissed the complaint; the appellate division affirmed. On appeal, held, reversed, three judges dissenting. The legislature did not intend to extend the business limitations of the Insurance Law to prevent a parent-subsidiary arrangement, at least where the parent’s admitted assets are sufficient to satisfy the investment requirements of the statute. Connecticut Gen. Life Ins. Co. v. Superintendent of Ins., 10 N.Y.2d 42, 176 N.E.2d 63, 217 N.Y.S.2d 39 (1961).