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SECTION 1112
Reciprocal provisions as to taxes, license fees, deposits, and other requirements
Insurance (ISC) CHAPTER 28, ARTICLE 11
§ 1112. Reciprocal provisions as to taxes, license fees, deposits, and
other requirements. (a) (1) If, by the laws, or the action of any public
official, of any other state, any insurer organized or domiciled in this
state, or its duly authorized agents, shall be, required to deposit
securities in such other state to protect policyholders or for any other
purpose, or shall be required to pay taxes, fines, penalties, fees for
licenses or certificates of authority or any other sum for the privilege
of doing business in such other state, or shall be subjected to any
restrictions, obligations, conditions or penalties, imposed for such
privilege, and such requirements are greater than those required of
similar insurers organized or domiciled in such other state by the laws
of this state for the privilege of doing business herein, then all
similar insurers organized or domiciled in such other state and their
duly authorized agents in this state shall make like deposits for like
purposes with the superintendent, and pay him for taxes, fines,
penalties, fees for licenses or certificates of authority or for any
other requirement for the privilege of doing business in this state, an
amount determined in the manner prescribed by such other state, and
shall be subjected to such greater requirements imposed by such other
state upon similar insurers of this state and their duly authorized
agents.

(2) (i) For the amount due under this subsection for the calendar year
nineteen hundred eighty-nine, an initial payment shall be made by each
insurer subject to this subsection of an amount equal to the lesser of
(a) ninety percent of the amount finally determined to be due under this
subsection for the calendar year nineteen hundred eighty-seven or (b)
eighty percent of the amount finally determined to be due under this
subsection for the calendar year nineteen hundred eighty-nine. Such
initial payment shall be made on or before March fifteenth, nineteen
hundred ninety.

(ii) For the amount due under this subsection for calendar years after
nineteen hundred eighty-nine, an estimated payment shall be due and
payable on or before the fifteenth day of December. This payment shall
be equal to the lesser of (a) ninety percent of the amount finally
determined to be due under this subsection for the second preceding
calendar year or (b) eighty percent of the amount finally determined to
be due under this subsection for the calendar year.

(iii) If any insurer fails to pay all or any part of the initial
payment or estimated payment due pursuant to subparagraph (i) or (ii) of
this paragraph, it shall be deemed to have made an underpayment. There
shall be added to the amount due pursuant to paragraph one of this
subsection, an amount at the rate set for underpayments by the
commissioner of taxation and finance pursuant to section one thousand
ninety-six of the tax law, minus four percentage points, or if no rate
is set, at the rate of six percent per annum upon the amount of the
underpayment for the period of the underpayment. In computing the amount
of any interest required to be paid, such interest shall not be
compounded. The amount of the underpayment shall be, with respect to the
initial payment or any estimated payment, the excess of the amount
required to be paid over the amount, if any, paid on or before the last
day prescribed for such payment. If the superintendent demands payment
of the initial payment or any estimated payment, and if such amount is
paid within ten days after the date of such demand, interest on the
amount so paid shall not be imposed for the period after the date of
such demand. No portion of the interest imposed pursuant to this
subparagraph may be waived.

(iv) Notwithstanding the provisions of section sixteen of the state
finance law, interest shall be allowed and paid at the rate set for
overpayments by the commissioner of taxation and finance pursuant to
section one thousand ninety-six of the tax law, or if no rate is set, at
the rate of six percent per annum upon any overpayment, from the date
payment was due to a date (to be determined by the superintendent)
preceding the date of a refund check by not more than thirty days. In
the case of a payment which is made after the last date prescribed for
payment of such payment, no interest shall be allowed or paid for any
day before the date on which the payment was made. In computing the
amount of interest required to be paid, such interest shall not be
compounded. No interest shall be allowed or paid if the amount thereof
is less than one dollar.

(v) If the period for which the amount is imposed pursuant to
paragraph one of this subsection is less than twelve months, every
insurer shall make estimated payments in accordance with regulations of
the superintendent.

(b) If the superintendent finds that by the laws or official acts of
any foreign country, insurers organized in this state are arbitrarily
denied the privilege of doing business in such foreign country, or are
subjected to unreasonable requirements therein, he may revoke the
licenses of all insurers of such country doing business in this state,
and may refuse to issue licenses to every insurer of such country
thereafter applying for a license to do business in this state, or in
lieu thereof, he may impose like requirements upon every insurer of such
country, until he shall find that such arbitrary denial or unreasonable
requirements no longer apply.

(c) If, by the existing or future laws of any other state, any broker
resident within this state and duly licensed as such under this chapter
may not be licensed as a broker in such other state, then no broker
resident in such other state shall be licensed as a broker within this
state, anything in this chapter to the contrary notwithstanding. If a
license fee exceeding forty dollars per annum is imposed by any other
state for issuing a license to a broker resident within this state, or
the amount of commissions which may be paid to such broker on premiums
on risks located in any other state shall be limited under the laws of
such state, then, all brokers resident in such other state shall upon
being licensed in this state pay a like fee in lieu of that prescribed
by this chapter, and insurance companies authorized to transact business
in this state shall not pay to any such nonresident broker any
commissions on premiums on risks located in this state exceeding those
which the laws of such other state permit brokers of this state to
receive on premiums on risks located in such other state.

* (d) (1) Should the insurance department, commissioner, director, or
other similar insurance regulatory official of any other state or
territory of the United States impose any sanctions, fines, penalties,
financial or deposit requirements, prohibitions, restrictions,
regulatory requirements, or other obligations of any kind upon any
insurance company organized or chartered in this state and licensed to
transact business in such other state or territory, because of the
failure of the New York insurance department to obtain, maintain, or
receive accreditation certification or any similar form of approval,
compliance, or acceptance from, by, or as a member of the National
Association of Insurance Commissioners, or any committee, task force,
working group, or advisory committee thereof, or because of the failure
of the department to comply with any directive, financial annual
statement requirement, model act or regulation, market conduct or
financial examination report or requirement, or any report of any kind
of the National Association of Insurance Commissioners, or any
committee, task force, working group, or advisory committee thereof, the
superintendent shall without exception or exclusion, impose upon any and
all insurance companies organized or chartered in such other state or
territory and licensed to do business in this state the same sanctions,
fines, penalties, financial or deposit requirements, prohibitions,
restrictions, regulatory requirements, or other obligations imposed upon
the insurance companies of this state.

(2) To the extent that it would be detrimental to the adequate and
proper regulation of insurance in this state to use existing employees
or resources of the department in order to comply in a timely manner
with paragraph (1) of this subsection, the superintendent may engage
such other qualified persons and services as may be necessary. The
superintendent shall recover all of the costs of such compliance in the
manner prescribed in section 313 of the insurance law.

* NB Expired March 31, 1995

* (e) The provisions of this section shall not apply to insurance
companies organized or domiciled in a state or country whose laws do not
impose retaliatory taxes or other charges or which grant, on a
reciprocal basis, exemptions therefrom to insurance companies organized
or domiciled in this state.

* NB Expired March 31, 1995, relettering expired on such date is
actually (d) from 367/84 on such date