§ 6907. Transition provisions. A licensed insurer writing financial\nguaranty insurance prior to the effective date of this article, but\nwhich is not authorized to write financial guaranty insurance in this\nstate, shall be subject to all the provisions of this article, except\nsection six thousand nine hundred two of this article, and:\n (a) may, unless the superintendent determines after notice and an\nopportunity to be heard that such activity poses a hazard to the\ninsurer, its policyholders or to the public, continue to write financial\nguaranties (except guaranties of municipal bonds) of the types\nauthorized by subsection (b) of section six thousand nine hundred four\nof this article applicable to financial guaranty insurance corporations,\nsubject to the following conditions:\n (1) For a transition period not to exceed sixty months from the\neffective date of this article, if the insurer has and maintains surplus\nto policyholders of at least seventy-five million dollars (for the\npurpose of this paragraph, if the insurer is a foreign insurer, its\nsurplus to policyholders shall be computed as if it were a domestic\ninsurer); provided that:\n (A) during the sixty month transition period, the amount of surplus to\npolicyholders needed to meet the single and aggregate risk limitations\nimposed by this article must be less than four percent of the insurer's\nsurplus to policyholders;\n (B) within nine months of the effective date of this article, the\ninsurer shall file a reasonable plan of operation, acceptable to the\nsuperintendent, which shall contain:\n (i) a reasonable timetable and appropriate procedures to implement\nthat timetable to make a determination as to whether or not the insurer\nwill make application to organize a financial guaranty insurance\ncorporation during the aforesaid sixty month period;\n (ii) the types and projected diversification of guaranties that will\nbe issued during the transition period;\n (iii) the underwriting procedures that will be followed;\n (iv) oversight methods;\n (v) investment policies; and\n (vi) such other matters as may be prescribed by the superintendent.\nThe plan of operation shall be deemed acceptable unless, within sixty\ndays of its filing, the superintendent notifies the insurer of any\nspecific objections to such plan. The plan shall be updated in the event\nof a material change with respect to the foregoing and at least\nannually;\n (C) if the insurer has determined that it will not organize a\nfinancial guaranty insurance corporation, within thirty days after that\ndetermination it shall notify the superintendent, cease writing policies\nof financial guaranty insurance and comply with the provisions of\nparagraph four of this subsection; and\n (D) the insurer shall file such additional statements or reports as\nmay be required by the superintendent.\n (2) For a transition period not to exceed ninety-six months from the\neffective date of this article, if the insurer has and maintains surplus\nto policyholders of at least one hundred fifty million dollars (for the\npurpose of this section, surplus to policyholders means the aggregate\nsurplus to policyholders of said insurer and other member companies of\nan inter-company pool, and if the insurer is a foreign insurer its\nsurplus to policyholders shall be computed as if it were a domestic\ninsurer) and the aggregate financial guaranty written premium of said\ninsurer and other member companies of an inter-company pool shall have\nbeen at least one million dollars in any one of the five years ending\nDecember thirty-first, nineteen hundred eighty-eight, provided that:\n (A) during the first sixty months of the transition period, the amount\nof surplus to policyholders needed to meet the aggregate risk\nlimitations imposed by this article must be less than four percent of\nthe insurer's surplus to policyholders. After such sixty month period,\nprovided the insurer complies with subparagraph (D) of thi
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