According to these sets of laws announced last week by the finance department of New York, disclosure,transparency, and financial standards of life insurance would be raised in New York. These laws advocate for the insured to disclose to the department the most important information, regarding the control persons andcorporate structure and other data concerning its operations. The laws are meant to enhance regulatory supervisory operations of dividends,operations, and reinsurance. These rules imply that any changes made during five years of acquisition should be made known to the department of finance in New York. And hence approval by the department is mandatory before these changes are made. The laws will also enhance raised financial accountability, which means that the department will compel acquirer to grantsupplemental capital if needed,if his operation plans change.
The proposed laws have been structured according to ratifications that the department arrived on policy holder protections last year, alongwith three investment companies which are namely: Apollo, Gugeinham and Harbinger. These firms are related to purchases of annuity firms which are based inNew York.
Gugeinham Company bought Sun Life Insurance and Annuity Company. Apollo global management bought Aviva life and Annuity Companyin 2013. Harbinger bought Fidelity & Guaranty Life Insurancein 2011. The finance department of New York made approval of both Gugeinham Apollo acquisitions on conditional signing of the consumer protection agreement which was created by finance department. Fidelity and Guaranty on the other hand signed the contract last year due to the fact that the finance department of New York forced Harbinger to relinquish control over these “other” firms. These firms are identified by the finance department as those“other” investment firms.These new sets of laws are more convenient to private equity as well as to other investment firms.
