New York DFS Issues Guidance Regarding Transactions with New York Insurers with Broad View of Potential Control Issues

20 April 2022
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Key takeaways:
  • On April 19, 2022, the New York Department of Financial Services (“DFS”) issued a Circular Letter (guidance) to all New York-domiciled insurers and other interested parties describing how DFS interprets “control” under the New York insurance law for transactions with insurers.
  • DFS describes transactions with “potential control issues” very broadly and urges parties contemplating such a transaction to engage with DFS early in the deal process even if they believe it will not result in a control relationship so DFS can evaluate whether the transaction will require an application to acquire control of an insurer or a disclaimer of such control.