L&HNew Yorkhard
Under NY Insurance Law § 1505, what is a domestic insurer that is a member of a holding company system generally required to do before entering into a material transaction with an affiliate?
AObtain prior written approval of every policyholder
BPublish notice in a state newspaper for 30 days
CHold a shareholder vote of the affiliate
File prior notice with the Superintendent of DFS
Why this is the answer
§ 1505 governs intra-holding-company transactions. Material transactions between a NY-domestic insurer and its affiliates — sales, loans, reinsurance cessions, management contracts, tax-sharing agreements — must be filed with the Superintendent of DFS in advance (typically 30 days prior). The rule prevents holding-company abuse that could drain insurer capital. Policyholder approval, newspaper notice, and affiliate-shareholder votes are not the statutory mechanism.
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