Key takeaways:

• Citing concerns about private equity investment in insurers, the New York State Department of Financial Services (NYDFS) has proposed an amendment to the regulation that sets forth the filing and other regulatory requirements for the acquisition and retention of control of New York insurers that includes specific requirements directed at acquisitions by private equity firms and other similar investors.
• The proposed amendment (which is currently in a 45-day comment period) would, among other things, require enhanced disclosure regarding general partners and managing members, solicitation materials relating to the acquisition vehicle and five-year plans for the insurer, with changes to such plans requiring the NYDFS’ prior approval, and would give the Superintendent discretion to require the acquirer to establish a trust account for the benefit of the target insurer.