2018 DFS Annual Report

ANDREW M. CUOMO

Governor

LINDA A. LACEWELL

Superintendent

June 15, 2019

To the Governor and Legislature:

As Acting Superintendent of the New York State Department of Financial Services, I am pleased to submit the

2018 Annual Report as required by Article 2, Section 207 of the Financial Services Law. Throughout 2018, the

Department carried out its mission to protect consumers and to promote the development of sound, fair

financial services. The Department’s varied work is detailed in the report.

As its charter instructs, the Department continues to work aggressively to foster the growth of a fair, robust

financial services industry and to protect consumers.

I hope you find the report useful.

Respectfully submitted,

Linda A. Lacewell

Acting Superintendent

2018 Annual Report

Linda A. Lacewell, Superintendent

INTRODUCTION ................................................................................................................................................................ 1

MAJOR ACCOMPLISHMENTS ............................................................................................................................................ 3

INSURANCE DIVISION OVERVIEW .................................................................................................................................. 14

BANKING DIVISION OVERVIEW ...................................................................................................................................... 16

REAL ESTATE FINANCE DIVISION OVERVIEW ................................................................................................................. 17

FINANCIAL FRAUDS AND CONSUMER PROTECTION DIVISION ....................................................................................... 17

COMPLIANCE DIVISION OVERVIEW ................................................................................................................................ 19

ENFORCEMENT DIVISION OVERVIEW ............................................................................................................................ 20

CAPITAL MARKETS/RESEARCH TRENDS DIVISION OVERVIEW ....................................................................................... 20

OFFICE OF FINANCIAL INNOVATIONS OVERVIEW .......................................................................................................... 20

LIQUIDATION BUREAU OVERVIEW ................................................................................................................................. 21

REGULATORY AND LEGISLATIVE ACTIVITIES .................................................................................................................... 21

REGULATIONS................................................................................................................................................................. 21

INDUSTRY AND CIRCULAR LETTERS ................................................................................................................................ 21

CHANGES TO THE BANKING, INSURANCE AND FINANCIAL SERVICES LAWS .................................................................. 22

STATEMENTS, RECOMMENDATIONS AND DECISIONS OF THE SUPERINTENDENT ........................................................ 22

LEGISLATIVE RECOMMENDATIONS FOR 2019 ............................................................................................................... 23

BANKING STATISTICS ...................................................................................................................................................... 24

SUMMARY OF SUPERVISED INSTITUTIONS .................................................................................................................... 24

CONDITION OF SUPERVISED INSTITUTIONS ................................................................................................................... 31

GENERAL INSURANCE COMPANY STATISTICS ................................................................................................................. 46

LICENSES ISSUED DURING YEAR ..................................................................................................................................... 46

2017 CHANGES IN AUTHORIZED INSURERS ................................................................................................................... 47

REPORTS FILED ON EXAMINATION OF AUTHORIZED INSURERS .................................................................................... 51

LIQUIDATION, CONSERVATION AND REHABILITATION PROCEEDINGS .......................................................................... 52

HEALTH INSURANCE ....................................................................................................................................................... 61

LIFE INSURANCE ............................................................................................................................................................. 66

FUNDS HELD BY OR DEPOSITED WITH THE SUPERINTENDENT ........................................................................................ 70

UNCLAIMED FUNDS FROM VOLUNTARY OR INVOLUNTARY BANK LIQUIDATIONS ....................................................... 70

STATE TRANSMITTER OF MONEY INSURANCE FUND (STMIF)........................................................................................ 70

PUBLIC MOTOR VEHICLE LIABILITY SECURITY FUND ...................................................................................................... 71

PROPERTY CASUALTY INSURANCE SECURITY FUND ....................................................................................................... 71

WORKERS COMPENSATION SECURITY FUND ................................................................................................................. 72

DEPARTMENT ORGANIZATION AND MAINTENANCE ...................................................................................................... 73

2018 DEPARTMENT RECEIPTS ........................................................................................................................................ 73

INTRODUCTION

The Department of Financial Services (DFS) supervises and regulates the activities of more than 1,800

insurance companies with assets of more than $4.7 trillion and approximately 1,500 banking and other

financial institutions with assets totaling more than $2.6 trillion. They include over 100 life insurance

companies, more than 1,000 property/casualty insurance companies, about 100 health insurers and managed

care organizations, and 300,000 individual insurance licensees, 122 state-chartered banks, 80 foreign

branches, 10 foreign agencies, 15 credit unions, 13 credit rating agencies, nearly 400 licensed financial services

companies, and more than 9,600 mortgage loan originators and servicers. The Department is organized into

the following divisions:

The Insurance Division supervises all insurance companies that do business in New York. The Division includes

the Property, Life and Health Bureaus.

The Banking Division supervises, through chartering, licensing, registering, and examining safety and

soundness, banking and other financial institutions. The division is comprised of the following three bureaus:

Foreign & Wholesale Banks, Community & Regional Banks and Licensed Financial Services.

The Financial Frauds and Consumer Protection Division (FFCPD) is responsible for protecting and educating

consumers and fighting consumer fraud. The FFCPD encompasses the Civil Investigations Unit; the Consumer

Assistance Unit; the Producers Unit; the Consumer Examinations Unit; the Student Protection Unit; and the

Holocaust Claims Processing Office.

DFS’s Compliance Division ensures that our staff meets the high standards that our agency promotes by

developing and delivering training for DFS employees and streamlining and modernizing DFS procedures to

ensure efficient and effective supervisory activities. The division also ensures that we have comprehensive

and effective standards for the entities that we regulate.

DFS’s Enforcement Division ensures that regulated entities comply with New York and federal law in relation

to their activities serving the public.

The Investigations and Intelligence Division develops investigative leads and intelligence in furtherance of the

Department’s efforts to enforce the Banking, Insurance and Financial Services laws, with particular focus on

the review and response to cybersecurity events and the development of supervisory, regulatory and

enforcement policy and direction in the area of financial crimes.

The Capital Markets/Research Trends Innovation Division provides the Department's expertise in complex

financial products (bonds, equities, credit, derivatives, and commodities), enterprise risk management,

financial analysis, Information Technology, internal controls and audit, research, fiduciary controls, and

regulatory accounting. The division works with the other DFS divisions in examinations and also conducts

targeted examinations. The Division has the primary regulatory responsibility for the New York State-based

public retirement systems and financial guaranty insurance companies. In addition, it leverages the business

intelligence that DFS gathers with the aim of analyzing this data to identify emerging risks and macroeconomic

trends that can be developed into topical reports and regular industry analysis.

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The Office of Financial Innovation was responsible in 2018 for DFS’s expanded specialty cyber and virtual

currency examiner staffs; developing expanded examination and supervision protocols; and developing key

initiatives and compliance measures, including increasing challenges posed by the continued emergence of the

virtual currency marketplace, as well as other innovations.

The Real Estate Finance Division is responsible for regulating all real estate and homeowner issues, as well as

oversight and enforcement of New York’s Vacant and Abandoned Properties Law. The division is also

responsible for managing the DFS registry of “zombie” properties. The division also includes Mortgage

Banking, and the Mortgage Assistance Unit.

DFS also administers the Mobile Command Center (MCC), an important tool to inform, engage and support

communities throughout New York State, particularly during times of crisis, such as the during aftermath of

natural and man-made disasters. DFS employees staff the MCC to provide assistance to homeowners,

business owners and residents with questions relating to insurance coverage for property losses.

This report includes data for 2018, unless otherwise stated. Financial data is for 2017-2018 fiscal year.

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 3

MAJO R ACCOMP LISHMENTS

The Department continues to work to protect consumers, safeguard markets and promote a thriving and

sustainable financial services sector for the long term. The highlights of some of our work in 2018 are below.

ENCOURAGING GROWTH, SAFEGUARDING MARKETS AND ENFORCING THE FINANCIAL SERVICES LAWS

Addressing Cybersecurity and New Challenges

As the first national or state regulator to implement cybersecurity regulations designed to protect personal

data and ensure the safety of banks, insurers and other financial services institutions, DFS has continued to

implement our final regulation, including undertaking a major training effort to prepare our staff to do

examinations to ensure compliance by our regulated entities and expanded the application of the regulation

to credit rating agencies. These regulations, which require essential minimum cybersecurity standards,

became effective in 2017 and affect financial services licensed by DFS, and, as of 2018, credit reporting

agencies. Under the regulations, businesses are required to establish and maintain documented cybersecurity

programs approved and certified by senior corporate officers.

The Equifax data breach that exposed the data of millions of Americans underscores the significance of these

landmark regulations. In response to the hack, DFS moved forward on two fronts. First, DFS issued guidance

instructing financial institutions licensed by the Department to review their information technology, identity

theft and fraud prevention programs. DFS urged institutions to adopt protective measures encouraged by the

Department’s cyber security regulations, such as multi-factor authentication and risk-based authentication

techniques. Second, DFS proposed new regulations requiring consumer credit reporting agencies to comply

with the Department’s cybersecurity regulations. These regulations were finalized in June 2018, and DFS

launched an online registration form for credit reporting agencies to register with DFS. Also in June 2018, DFS

led a group of eight state banking commissioners to hold Equifax accountable for the massive breach. Under a

consent order with the multistate group, Equifax agreed to take corrective actions, including developing a

proper risk assessment and improving the Board's oversight of information security information, audit, patch

management, information technology operations, vendor management, and other functions. Equifax was also

required to submit to DFS and the multi-state regulatory agencies a list of all remediation projects planned, in

process or implemented in response to the 2017 breach, along with the company’s prioritization of those

projects, as well as provide written reports to DFS and the other state regulators outlining its progress toward

complying with each provision of the consent order.

DFS continues to lead in this area. To date, no other state or federal regulatory agency has adopted a

cybersecurity regulation requiring financial institutions to have adequate cybersecurity programs.

Ensuring Compliance with Bank Secrecy Act and Anti-Money Laundering Laws

In 2018, DFS launched a new online portal for regulated entities to securely file certifications under the

Department’s landmark risk-based anti-terrorism and anti-money laundering regulation. The first certification

of compliance was due April 16, 2018. Under the regulation, which took effect January 5, 2017, regulated

institutions are required to maintain programs to monitor and filter transactions for potential Bank Secrecy

Act (BSA) and anti-money laundering (AML) violations and prevent transactions with sanctioned entities.

The regulation requires regulated institutions annually to submit a board resolution or senior officer

compliance finding confirming steps taken to ascertain compliance with the regulation.

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 4

Regulating and Licensing Virtual Currencies

Virtual currency, distributed ledger, and blockchain technologies continue to present opportunities and

challenges for industry as well as regulators. Innovative platforms for conducting commerce can help improve

the efficiency of financial transactions, record-keeping and clearing. Easier facilitation of payments and

anonymous movements of funds can present risks that can be mitigated by strong compliance systems and

regulatory oversight designed to safeguard consumers, and to prevent money laundering and funding illegal

activities.

DFS co-hosted a nationwide financial technology forum in 2018 for state banking regulators and banking

executives, addressing fintech developments and business models, opportunities and risks, as well as state-

based regulatory approaches to innovation. DFS also issued guidance reminding all virtual currency entities

licensed by New York State that they are required to implement measures designed to effectively detect,

prevent, and respond to fraud, attempted fraud, and similar wrongdoing. In addition, DFS reminded virtual

currency companies to be especially vigilant against efforts at market manipulation.

DFS granted five new virtual currency licenses in 2018, to Coinsource Inc., NYDIG Execution LLC, Bitpay Inc.,

Square Inc., and Xapo Inc., in accordance with the Department’s 2015 regulation requiring a license to engage

in the virtual currency business. The Department also helped to promote regulated innovation within the New

York State charter banking system by granting New York State-chartered Signet Bank’s application to offer a

new digital payment platform for commercial transactions leveraging blockchain technology. In addition, DFS

authorized Coinbase to form a trust company offering custody services for Bitcoin, Bitcoin Cash, Ethereum,

Ether Classic, XRP and Lightcoin; and authorized both Gemini Trust Company LLC and Paxos Trust Company

LLC to offer stablecoin, a price-stable cryptocurrency. DFS also authorized Paxos Trust Co. to offer exchange

and custody services for Ether, Litecoin, Stellar Lumens and Bitcoin Cash, on its virtual currency exchange, as

well as a permissioned, blockchain-based post-trade platform settlement service, and authorized Gemini Trust

Company LLC to offer custody services for, and trading of, Zcash, Litecoin and Bitcoin Cash. Like other

regulated financial services entities, virtual currency companies are subject to periodic examinations by DFS.

Encouraging the Growth of the Banking Industry

DFS continued its disciplined effort to promote its state banking charter in 2018, and the results show that the

New York State banking system is strong and growing. In 2018, DFS approved three new state charters and

licenses, compared with zero in 2017. This brought the total number of New York State-chartered banking

institutions and branches to 1,498 in 2018, up from 1,485 in 2017.

Modernizing Operations and Enhancing Financial Services Regulation

With the transition of check cashers and virtual currency business activity companies to the Nationwide

Multistate Licensing System and Registry in 2018, DFS completed the final phase of the transition of its non-

depository licenses to the platform. The secure, web-based, nationwide licensing system provides enhanced

supervision of regulated entities by linking with other states to provide more efficient regulation. Licensed

budget planners, sales finance agencies, money transmitter licensees and mortgage providers were previously

transitioned to the registry.

Protecting New York’s Financial Markets

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Enforcement actions ensure that regulated entities comply with New York and federal law in relation to their

activities serving the public. In 2018, DFS announced several consent orders with banks for violations of New

York’s anti-money laundering laws (AML). In addition, a DFS investigation of foreign exchange trading by

several global banks uncovered illegal, unsafe and unsound practices in violation of New York Banking Law.

Monetary penalties for these violations totaled nearly $795 million in 2018. They include:

 Société Générale: On November 19, 2018, DFS fined Société Générale SA and its New York branch

$420 million for violations of laws governing economic sanctions and New York anti-money laundering

laws. A DFS investigation found that the bank executed billions of dollars in illegal and non-transparent

transactions to parties in countries subject to embargoes or otherwise sanctioned by the United States,

including Iran, Sudan, Cuba and Libya, and its New York branch violated New York AML and

recordkeeping laws in the New York branch’s operations. In addition, the bank and the New York

branch violated provisions of the banks’ 2009 agreement with DFS to implement and maintain an

effective Bank Secrecy Act/Anti-Money Laundering Law compliance program and transaction

monitoring system.

 Deutsche Bank: On June 20, 2018, DFS fined Deutsche Bank AG $205 million for violations of New York

banking law, including efforts to improperly coordinate trading activity through online chat rooms,

improperly sharing confidential customer information, trading aggressively to skew prices, and

misleading customers. The violations stem from an investigation by DFS determining that from 2007 to

2013, when Deutsche Bank was the largest foreign exchange dealer in the world, the bank repeatedly

engaged in improper, unsafe, and unsound conduct in its foreign exchange business due to its failures

to implement effective controls. In addition, for certain time periods, limited elements of Deutsche

Bank’s electronic trading platforms had the potential to improperly disadvantage customers and

improperly affect markets, when certain applications did not perform as intended.

 Goldman Sachs: DFS fined Goldman Sachs Group Inc., parent company of Goldman Sachs Bank USA,

$54,750,000 for violating New York banking law, including improperly sharing customer information

with other global banks, and other unlawful conduct that disadvantaged customers and potentially

affected foreign exchange prices. The violation stemmed from an investigation by DFS determining

that from 2008 to early 2013, Goldman engaged in unlawful, unsafe and unsound conduct by failing to

implement effective controls over its foreign exchange business.

 Mashreqbank: DFS fined United Arab Emirates-based Mashreqbank PSC and its New York branch $40

million on October 10, 2018, for violations of New York anti-money laundering and recordkeeping laws.

The bank must also hire a third-party consultant to address compliance deficiencies and review

transaction clearing activity.

PROTECTING CONSUMERS

Filling the Federal Regulatory Void

DFS has stepped into the regulatory void created by the federal government’s continued attempts to strip

away important consumer protections and reverse regulatory reforms stemming from the financial crisis of

2008. In addition to protecting New York’s health insurance markets from federal attacks, DFS opposed the

rollback of protections by the new leadership of the Consumer Financial Protection Bureau; provided insights

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 6

into these actions to consumers on its website; and protected consumers through targeted regulation,

consumer outreach and enforcement actions.

Holding Regulated Entities Accountable, Ensuring Consumer Restitution

DFS conducts examinations to ensure that its regulated entities comply with New York State Financial Services

Law and consumer protection laws. Where necessary, DFS issues fines to hold its regulated entities

accountable, while protecting consumers by requiring restitution. These efforts include $35.6 million in

penalties against insurers and other regulated entities, $45 million in remediation efforts, including $5 million

in property donations, as well as $14.3 million in restitution to consumers. Actions in 2018 include the

following:

 AFLAC and Transamerica: Under a consent order with DFS, AFLAC has made restitution of more than

$960,000 to New York consumers for failing to include disclosure language on premium notices in

violation of New York Insurance Law and for failing to provide applicants full and clear information

related to the replacement of their existing life insurance so that they could make a decision in his or

her own best interest in violation of New York regulation. The insurer also paid a civil penalty of

$176,890 for these violations and others discovered during a DFS market conduct examination.

 Transamerica: DFS ordered Transamerica to pay restitution of more than $580,000 for violations

including sending lapse notices without required information to policyholders, in addition to a civil

penalty of $762,700 for other violations, as a result of a DFS examination.

 Athene Life Insurance Company of New York (Athene) and First Allmerica Financial Life Insurance

Company (FAFLIC): DFS entered a consent agreement with Athene Life Insurance Company of New

York (Athene) and First Allmerica Financial Life Insurance Company (FAFLIC), requiring Athene to pay a

fine of $15 million and FAFLIC to make remedial efforts totaling approximately $40 million for

violations of New York Insurance Law and regulations. A DFS market conduct examination, which was

initiated following consumer complaints, found that Athene did not provide required information to

about 15,000 policyholders, including premium notices, annual reports or cash surrender value notices,

and annual privacy notices from 2015 to 2017.

 Chubb: DFS fined Chubb Ltd. and Chubb’s subsidiary, Illinois Union Insurance Company $1.3 million for

underwriting the National Rifle Association-branded “Carry Guard” insurance program, through

Lockton Affinity, in violation of New York Insurance Law. A DFS investigation found that the NRA “Carry

Guard” insurance program unlawfully provided liability insurance to gun owners for acts of intentional

wrongdoing, and improperly provided legal services insurance for costs and expenses, for any act of

self-defense covered under the policy for gun owners and their resident family members who may be

charged with a crime involving a legally possessed firearm. The insurer will also no longer participate in

“Carry Guard” or any similar program in New York.

 William Penn: DFS fined William Penn Life Insurance Company $6.3 million for engaging in improper

reinsurance transactions in an effort to minimize reserves backing life insurance policies issued by the

company. DFS found that William Penn engaged in improper reinsurance transactions during a four-

year period from 2014 through 2018 by implementing amendments to existing reinsurance treaties

with its European parent company without receiving Department approval as required by New York

Insurance Law.

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 7

 Lockton: DFS fined Lockton Cos. LLC and its affiliate Lockton Affinity LLC $7 million for serving as the

administrator of the National Rifle Association-branded “Carry Guard” insurance program in violation

of New York Insurance Law.

 Nationstar Mortgage: DFS fined Nationstar Mortgage LLC $5 million for violations of New York State

Banking Law, stemming from the company’s failure to develop effective, scalable controls that could

keep pace with its rapid growth. As a result of DFS examinations, Nationstar has made restitution of $7

million to New York borrowers. Under the consent order with DFS, Nationstar will also donate $5

million in residential real property or first-lien mortgages to one or more non-profit organizations to

assist in the rehabilitation of vacant and abandoned properties.

 Sentinel Insurance: Under a consent order with DFS, Sentinel agreed to provide full restitution,

including interest, of $1.6 million to policyholders who were overcharged for a required New York fire

fee between October 2009 and December 2015. The consent order also requires Sentinel to pay a

$150,000 fine to DFS.

 Selective Insurance: Under a consent order with DFS, Selective agreed to provide full restitution,

including interest, of $4.1 million, to policyholders who were overcharged improper rates for property

and casualty coverage from January 2003 through February 2016, as well as pay a total of $550,000 in

fines to DFS.

Protecting Consumers from Data Breaches

DFS remains vigilant about the growing problem of data breaches, as demonstrated by our continued

consumer outreach, industry guidance and strong regulation. DFS consumer representatives partner with local

organizations and visit local communities to educate consumers about identity theft and provide ways they

can protect their sensitive information. DFS also provides a brochure that is distributed throughout the State

and is included on the DFS website, along with the number to the DFS Consumer Hotline.

Continuing its response to the massive data breach at Equifax, on June 25, 2018, DFS issued a new regulation

requiring credit reporting agencies to register with New York for the first time and comply with New York's

first-in-the-nation cybersecurity standard. The annual reporting obligation also provides the DFS

Superintendent with the authority to deny and potentially revoke a consumer credit reporting agency's

authorization to do business with New York's regulated financial institutions and consumers if the agency is

found to be out of compliance with certain prohibited practices, including engaging in unfair, deceptive or

predatory practices. On August 22, 2018, DFS launched an online registration form for credit reporting

agencies to comply with the final regulation.

In addition, under a June 27, 2018, consent order with the DFS and the commissioners of seven other state

banking regulators, Equifax agreed to take corrective actions that included developing a proper risk

assessment and improving the Board's oversight of information security information, audit, patch

management, information technology operations, vendor management, and other functions. DFS led the

multi-state examination team on matters related to cybersecurity and internal audit functions.

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 8

Ensuring Consumers’ Best Interests

In July 2018, DFS issued a final regulation adopting a "best interest" standard for those licensed to sell life

insurance and annuity products to protect New York State consumers from conflicted advice. The new

regulation requires insurers to establish standards and procedures to supervise recommendations by agents

and brokers to consumers with respect to life insurance policies and annuity contracts issued in New York

State so that any transaction with respect to those policies is in the best interest of the consumer and

appropriately addresses the insurance needs and financial objectives of the consumer at the time of the

transaction.

The final regulation, which amends New York's current suitability regulation, provides for a best interest

standard of care for all sales of life insurance and annuity products, including both in the specific context of

retirement planning, when recommendations are made prior to the sale of an insurance product or after the

sale but during the servicing of the product for the consumer.

The regulation fills in regulatory gaps to protect New York consumers from the elimination of the federal

Department of Labor’s Conflict of Interest Rule, which the Trump Administration failed to protect on appeal

after a ruling from the U.S. Fifth Circuit Court of Appeals and also supplements existing consumer protections

that already exist in New York, including setting reasonable limits on compensation and compensation

transparency for the sale of a life insurance or annuity product in New York State.

Protecting Homeowners and Communities

DFS continued to address the blight of vacant and abandoned properties in 2018 through the administration

of a statewide registry where New Yorkers can report these zombie properties. Thus far, we have inspected

about 3,500 properties and enforced remediation of issues for about 1,800 properties, and we have collected

a total of $250,800. The number of vacant properties in the registry has declined by about one-third since DFS

established the registry, going from a high of 30,000 to a little under 20,000.

Taking Action Against Predatory Landlords

In 2018, DFS received complaints that certain owners of rent-stabilized multifamily residential buildings who

have engaged in inappropriate practices including tenant harassment and unsafe living conditions may have

obtained loans, directly or indirectly, from banking institutions for the purchase or renovation of buildings in

New York. In response, DFS issued guidance advising insurers that it expects enhanced due diligence of such

landlords in their lending activities involving New York rent-stabilized or rent-regulated multifamily residential

buildings, DFS.

DFS also issued a consumer alert in 2018 warning New Yorkers about the pitfalls of rent-to-own or land

installment contracts, factors to consider before signing a contract, and how to get legal help if needed. The

consumer alert was prompted by a current DFS investigation into whether alternative home purchase

agreements, such as rent-to-own, lease-to-own or land installment contracts, being offered in New York

constitute unlicensed, predatory mortgage lending.

Ensuring Fair Auto Insurance Rates and Auto Lending

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In 2018, DFS reached agreements with four major automobile insurance companies in compliance with the

Department’s final regulation prohibiting insurers from using an individual’s occupational status and/or

educational level as unfairly discriminatory factors in setting rates. Together, the four companies provide

coverage to the majority of the private passenger auto insurance market in New York. During a multi-year

investigation, DFS found that some, but not all, insurers in New York had used an individual’s education level

and/or educational status in establishing initial tier placement without a clear demonstration of the required

relationship between these factors and driving ability. As a result, classes of insureds had their rates skewed

from inception, regardless of whether the insurer could rationally predict a different risk of loss for that

insured.

In addition, DFS issued guidance in August 2018 to remind supervised institutions and sales finance companies

that engage in indirect automobile lending that they must comply with New York State’s Fair Lending Law,

Executive Law §296-a, despite federal supervisory lapses and rollbacks in enforcement. Section 296-a

prohibits discrimination in, among other things, the granting, withholding, extending, or renewing, or in the

fixing of the rates, terms, or conditions of any form of credit on the basis of race, creed, color, national origin,

sexual orientation, gender identity or expression, military status, age, sex, marital status, disability, familial

status. In the guidance, DFS reminded supervised institutions of actions they should take to develop a fair

lending compliance program for indirect automobile lending and of their liability for any discrimination

resulting from markup and compensation policies with third parties, such as car dealers.

Shielding Students from Misleading and Improper Practices

DFS continued to advocate for students in the face of weakened federal protections, issuing a statement in

opposition to the U.S. Department of Education’s interpretation memo challenging states’ protections for

student loan borrowers. In 2018, DFS also continued to champion bills that would allow the Department to

license and regulate student loan servicers, and to prohibit predatory practices of student debt consultants.

DFS engaged in settlement negotiations with Conduent Education Services, LLC, f/k/a Xerox Education

Services, LLC, f/k/a and d/b/a ACS Education Services, Inc. (“Conduent”) throughout 2018, following a 2015

investigation to determine whether the company had complied with applicable laws while servicing federally

guaranteed and private student loans. DFS’s investigation uncovered that although Conduent had

represented to borrowers that it would help them find a repayment plan that fit their needs, it did not.

Instead, the company steered many borrowers into forbearance under which no payments are made for a

certain period of time and the unmade payments are usually added to the total due at the end of the

forbearance period, when the borrowers could have benefited from a reduced payment plan under an

income-driven repayment plan. DFS finalized a settlement in January 2019 in which Conduent agreed to pay

$1 million in penalties to the State and $8 million in restitution to New York consumers. Conduent, which has

wound down its student loan servicing business, also agreed not to service student loans (except for Perkins

Loans) for five years.

The Department’s Student Protection Unit (SPU), created by Governor Andrew Cuomo in 2015, is dedicated to

investigating potential consumer protection violations and distributing clear information that students and

their families can use to help them make informed, long-term financial choices. In 2018, SPU conducted 57

workshops at schools, libraries, community centers, and other locations across the state. The workshops

provided vital information about the best way to finance an education and available loan repayment options.

Together with other DFS units, SPU also attended the New York State Fair in August and answered questions

and distributed brochures to help New York consumers better understand student loans.

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Protecting Seniors from Financial Exploitation

DFS continued its efforts to combat elder financial exploitation in 2018, conducting two trainings on the

subject. In April, DFS held a training session together with the Office of Children and Family Services (OCFS),

local Adult Protective Services (APS), local District Attorneys, and nonprofits. The training was for New York-

chartered banks and credit unions with locations in Queens and was attended by professionals from 16

institutions. In December, DFS staff traveled to the OCFS headquarters outside Albany to co-host a webinar

about OCFS and DFS’s role in addressing elder financial exploitation, including how DFS staff has been trained

to identify such exploitation and to facilitate referrals to APS where appropriate. The webinar was for APS

staff and their supervisors, and over 100 APS staff members participated from around the state.

Increasing Integrity of the Bail Business

In May 2018, Governor Cuomo announced a series of listening sessions to inform the public on the state’s

actions to protect consumers, crack down on unscrupulous activity in the bail bond industry, and raise the

standards of integrity in the bail business. DFS, along with the Department of State, held public listening

sessions in New York City, Buffalo, and Syracuse to gather input from communities, advocates, and industry

about how to combat abuses in the industry. DFS also commenced an investigation of the industry, requesting

information and documents from all licensed bail agents in New York. In 2017, DFS had sought similar

information from all licensed surety companies that write bail business in New York.

In August 2018, DFS issued proposed a new bail regulation to raise the standards of integrity in the bail

business, protect vulnerable New Yorkers from abuses in the industry, and increase transparency and

understanding of bail bonds. The investigation and listening sessions revealed an industry full of harmful

practices and abuses of vulnerable New Yorkers, frequently those from marginalized groups. The proposed

regulation outlaws those practices to the extent of the state’s current statutory authority and, among other

changes, provides information and education for consumers through a new bail bond “bill of rights” to help

New Yorkers better understand the bail bond process and their rights under that system. DFS met with and

received comments on the proposed regulation from the bail bond industry, advocates, and other government

agencies, and continues to review and revise the proposed regulation.

Analyzing Online Lenders

In August 2018, DFS issued a report on online lending in New York State, the result of a bill signed by Governor

Cuomo on June 1, 2017, that required the report to include, among other things, an analysis of online lenders

operating in New York; the risks and benefits of the products offered by the online lenders; the primary

differences with products offered by traditional lending institutions; and complaints and investigations relating

to online lenders. The report analyzed the responses of marketplace lenders to a DFS survey, as well as

comments received by other stakeholders. In addition, DFS discussed its oversight of state-chartered

depository and non-depository institutions and its strong enforcement of consumer protections laws. The

report also covered the numerous actions that DFS had taken to enforce New York’s usury laws, including

against payday lenders and their affiliates. The report also put the current discussion of consumer lending in

the context of the financial crisis involving mortgage lending just 10 years ago.

DFS made the following recommendations in the report: the equal application of New York’s strong consumer

protection laws and regulations to all consumer and small business lending activities; that all lending in New

York should operate under the same set of usury laws and be subject to consistent enforcement of those rules

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 11

to achieve a level playing field for all market participants; and that direct supervision and oversight is

necessary to ensure that New York’s consumers and small business owners receive the same protections

regardless of the channel of delivery and that all lenders operate their businesses and conduct their activities

in a safe and sound manner.

Reaching the Unbanked and Under-Banked

DFS administers New York State’s signature access to banking program, the Banking Development District

(BDD) program, designed to encourage the establishment of bank branches in areas across New York State

where there is a demonstrated need for banking services. The Superintendent has encouraged New York-

chartered banks to participate in the program to encourage financial inclusion.

DFS approved the designation of three new BDDs in 2018: Community District 6, Bronx County, Village of

Green Island, Albany County, and the Village of Union Springs in the Town of Springport, Cayuga County. The

new districts will expand access to retail banking services and products for consumers in need of establishing

or rebuilding their credit and financial education, as well as small businesses, and bilingual Spanish speakers,

and provide access to retail banking services and products for local businesses and residents, including many

retirees.

In 2018 DFS received new inquiries relating to six communities seeking to establish at BDD; as of December 31,

2018, the BDD designation process had begun for one of those six. In 2018, DFS reviewed 15 applications

requesting renewal of deposits, resulting in 15 recommendations for renewal with no reservations. The

Department also reviewed five BDD progress reports for which it issued responses noting satisfactory

progress.

Preventing Discrimination in Healthcare

DFS continued its efforts to prevent discriminatory practices in healthcare during 2018. In response to a

Trump Administration proposal to repeal a federal regulation that clarifies that the Affordable Care Act’s

(“ACA’s”) non-discrimination protections based on sex include protections based on gender identity, DFS

issued guidance to insurers in June 2018. The guidance reminded insurers that, regardless of what occurs at

the federal level, New York State has its own state laws that prohibit discrimination based on sexual

orientation, gender identity and/or gender dysphoria.

Protecting Reproductive Rights

The Department took several steps to protect women’s access to comprehensive and affordable health

services, including:

 Supporting Coverage of Comprehensive Lactation Support Services, Including Counseling, Education,

and Breastfeeding Equipment and Supplies: In May 2018, DFS issued guidance reminding insurers of

their responsibility to provide coverage for comprehensive lactation support services, including

counseling, education, and breastfeeding equipment and supplies without cost-sharing, ensuring that

mothers and their babies have a healthy start.

 Contraceptive Investigation: As a result of an undercover sting operation in 2017, the Department

conducted an investigation in 2018 of compliance by insurers, HMOs, and prepaid health service plans

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 12

with contraceptive coverage requirements under the New York Insurance Law. As a result of the

investigation, the Department found that several health plans incorrectly denied claims for

contraceptive drugs and devices, while others inappropriately charged cost-sharing for contraceptive

drugs and devices. The Department also found that several health plans did not include accurate

information about contraceptive cost-sharing on their drug formularies. The Department entered into

consent orders with eight health plans for violating contraceptive rules mandated by New York

Insurance Law. Under the terms of the consent orders, the health plans paid a total of $535,000 in

fines and made restitution to the consumers who were charged with improper co-payments,

deductibles, or other out-of-pocket costs. In addition, the health plans were required to update their

claims payment systems and formularies as well as re-train claims examiners on the appropriate

procedures for the adjudication of claims for contraception coverage.

 Addressing Maternal Depression: In May 2018, at Governor Cuomo's direction in a multi-agency effort

to combat maternal depression, DFS required all New York commercial health insurance policies to

cover maternal depression screenings, including screening for the mother under the child's policy.

Reducing Health Insurance Costs and Safeguarding Healthcare

The strength and vibrancy of New York’s commercial health insurance market is a priority for DFS. DFS has

taken numerous steps to protect New York’s individual and small group health insurance markets in the face

of regulatory actions taken by the Trump administration to undermine the success of the ACA. Specifically,

the Trump administration promulgated regulations permitting the sale of non-ACA compliant short-term

limited duration junk policies and created a new type of entity called Association Health Plans (AHPs) that

allow individuals and small employers to evade the requirements of the ACA and erode the integrity of New

York’s individual and small group markets. DFS issued Circular Letters reminding health insurers that,

notwithstanding federal law, short-term limited duration junk policies are not permitted to be sold in New

York and that any policies sold to AHPs must comply with all the rating requirements in the Insurance Law

including the requirement that all individual and small employer members of the AHP comply with the

individual and small group community-rating rules.

Combatting the Opioid Epidemic

In 2018, DFS continued its ongoing efforts to address the opioid epidemic that continues to have a devastating

impact in New York:

 Formulary Exception Requests for SUD Medications: DFS issued a regulation that requires health

insurers to establish a process for consumers or their doctor to request a formulary exception and gain

access to clinically appropriate medication not otherwise covered by the insurance policy for the

detoxification or maintenance treatment of a substance use disorder.

 Formulary Tier Placement of Pain Management Drugs: To ensure that New Yorkers have access to

less-addictive opioid and non-opioid pain medications, in September 2018, DFS issued guidance to

inform insurers that prescription drug copayments and coinsurance may not be based on cost of the

drug alone, and that insurers should consider the addictive or non-addictive qualities of the

prescription drug under a safety review.

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 13

 Preauthorization for Substance Use Disorder Treatment: DFS provided guidance to insurers in

September 2018 regarding a new law that prohibits prior authorization of outpatient treatment for

substance use disorder and limits an insurer’s ability to perform concurrent review during the first two

weeks of treatment.

Assisting During Natural Disasters

DFS undertook several efforts to protect communities during emergency situations, including urging disaster

preparedness, and assisting in relief and recovery efforts after disasters. In 2018, DFS deployed its Mobile

Command Center, staffed with employees, to assist New Yorkers in the mid-Hudson, Finger Lakes, and

Southern Tier regions, which were affected by flooding, storms and tornadoes. In addition, DFS issued

updated guidance directing property/casualty insurers to update their disaster response and recovery plans

aimed at ensuring they are proactively prepared to address consumer needs before a disaster strikes. DFS

issued the updated requirements in light of disasters that may occur outside of New York, such as hurricanes,

terrorist attacks, or cybersecurity breaches, which could affect an insurer’s ability to serve New York

consumers.

In the aftermath of Hurricanes Maria and Irma, DFS supported the Governor’s efforts to bring relief to the

island. In guidance issued to insurers and state-chartered banks, DFS requested that all reasonable and

prudent efforts be undertaken to assist customers affected by the hurricanes, including fair and speedy

resolution of claims; provision of emergency aid information and resources for remediating damage; waiving

ATM and overdraft fees, increasing ATM daily cash withdrawal limits; easing restrictions on cashing out-of-

state and non-customer checks, and increasing credit card limits for creditworthy customers. Further, two

bilingual DFS examiners also spent two weeks each in Puerto Rico in early 2018, working with the island’s

insurance regulator to help consumers with claims and resolving issues.

Fighting Insurance Fraud and Financial Fraud

DFS has a longstanding commitment to combating financial fraud. It is responsible for the detection and

investigation of insurance and financial fraud and the referral for prosecution of persons or entities that

commit those frauds. DFS investigations led to 365 arrests for insurance fraud and related crimes in 2018,

including 91 for healthcare fraud. DFS’s criminal investigations resulted in $1.4 million in court-ordered

restitution in 2018. DFS referred 56 cases to prosecutorial agencies in 2018, and prosecutors have obtained

189 convictions in these cases.

SUMMARY

DFS employees work hard every day to build on our successes in reforming the regulation of financial services

in New York to keep pace with the rapid and dynamic evolution of these industries, to guard against financial

crises and protect consumers and markets from fraud. The Department also endeavors to fill the regulatory

gap created by the federal government’s misguided inaction or action. DFS looks forward to continuing our

important work and further advancing our ongoing efforts to protect consumers and ensure the safety and

soundness of regulated financial institutions in the Empire State.

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 14

INSURANCE DIVISION OVERVIEW

Property Bureau

The Property Bureau oversees the financial condition and market conduct of property and casualty insurance

companies in order to monitor the financial solvency of licensees and maintain an equitable marketplace for

policyholders. It supervises more than 870 regulated entities with total assets of $1.4 trillion writing net

premiums totaling more than $413 billion.

The Property Bureau’s Financial Section conducts examinations and analyses, which include reviewing and

monitoring the financial condition of regulated entities, reviewing mergers, acquisitions and transactions

within holding company systems and reviewing applications for the licensing of domestic and foreign insurers,

accreditation of foreign and alien reinsurers, to qualify as a certified reinsurer and for registration as a service

contract provider.

The Property Bureau Market Section reviews policy forms and rate filings for all lines of insurance, including

workers’ compensation, private passenger and public automobile and medical malpractice insurance rates. In

addition, the Market Section oversees the American Arbitration Association’s administration of conciliation

and arbitration of no-fault auto insurance claims disputes and monitors the excess and surplus lines insurance

market, as well as risk retention groups and purchasing groups organized pursuant to the Federal Risk

Retention Act.

The Property Bureau also conducts investigations of property and casualty insurers' underwriting, rating and

claims practices to determine compliance with New York statutes and Department Regulations. The findings of

these investigations may result in disciplinary action. Where appropriate, the Bureau seeks the return of

improperly charged premiums and the additional payment of underpaid claims plus interest to New York

policyholders and claimants.

Health Bureau

The Health Bureau regulates accident and health insurers with total assets of $49.1 billion and premiums

totaling $49.2 billion. The Health Bureau has responsibility for all aspects of accident and health insurance

regulation.

The Health Bureau regulates the licensing, certification, and fiscal solvency of accident and health insurance

companies, Article 43 not-for-profit health plans, health maintenance organizations (HMOs), municipal

cooperative health benefit plans, student health plans and continuing care retirement communities, including

the review of financial statements and holding company transactions.

The Health Bureau conducts financial and market conduct examinations to ensure compliance with statutory

and financial solvency requirements, as well as proper treatment of policyholders. The financial examinations

focus on high-risk areas of an entity’s operations and include corporate governance, internal controls, current

and prospective risk assessment, and review of material transactions.

The Health Bureau reviews and approves health insurance premium rates and policy forms, and reviews

provider networks for adequacy. The Health Bureau also reviews discontinuances of health insurance

coverage.

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 15

The Health Bureau administers the Healthy NY program and the COBRA program which provide insurance

coverage to vulnerable small businesses and individuals meeting certain eligibility criteria. In addition, the

Health Bureau oversees the Healthy NY Stop Loss Funds and the Market Stabilization Pool, which is a risk

adjustment mechanism for Medicare Supplement coverage.

In conjunction with the Department of Health, the Health Bureau oversees the NYS Medical Indemnity Fund

which covers the cost of qualifying health care services, home, and vehicle modifications for enrollees with

neurological impairments resulting from birth-related medical injuries.

The Health Bureau implements health insurance legislation and drafts regulations and guidance. In 2018, the

Bureau issued guidance and established requirements in a number of important areas including: prohibition of

health insurance discrimination based on sex, including sexual orientation, gender identity, and/or gender

dysphoria; prohibition of short term limited duration junk policies; requiring association health plans to

comply with all the protections in the Insurance Law; requiring coverage of comprehensive lactation support

services; prohibiting preauthorization for substance use disorder treatment; and requiring insurers to have a

formulary exception process that permits an insured to access a medication for the treatment of substance

use disorder when it is determined to be medically necessary, even if the medication is not on the insurer’s

drug formulary.

Life Bureau

The Life Bureau supervises more than 650 regulated entities, including 132 licensed life insurance companies

with assets of $3.2 trillion and premiums of more than $254 billion.

The 132 life insurers supervised by the bureau include 82 domiciled in New York and 50 foreign domiciled

insurers. In addition, the bureau supervises: 34 fraternal benefit societies; 12 retirement systems, including

four private pension funds and eight governmental systems; nine governmental variable supplements funds;

385 charitable annuity funds; 22 employee welfare funds; 22 life settlement providers; 25 accredited

reinsurers and 11 certified reinsurers.

The Life Bureau regulates financial condition through: the establishment and application of financial standards

(risk-based capital, reserves, accounting, etc.); the periodic examination of insurance companies’ financial

activities; the evaluation of reserve adequacy and liquidity and other risks; the review of life products for self-

support and potentially excessive risk; and the analysis of financial statements and actuarial reports and

opinions submitted by regulated entities. Such Bureau processes are performed to verify that statutory and

regulatory financial standards are met and to ensure that insurers can meet their financial and contractual

obligations.

The Life Bureau regulates market conduct through: the establishment of market conduct standards (product

provisions, replacements, claims practices, etc.); the periodic examination of insurance companies’ sales and

marketing practices and treatment of policyholders; the investigation of specific or targeted market activities;

and the analysis of market data. These processes are performed to: ensure compliance with statutory and

regulatory requirements; ensure that policyholders are treated fairly and equitably by insurers in accordance

with prescribed standards of conduct; and protect the marketplace by preventing and/or limiting practices

that constitute unfair trade practices or unfair methods of competition.

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 16

The Life Bureau reviews and approves life insurance policies, annuity contracts, funding agreements, and all

other agreements and policy forms relating thereto submitted by authorized life insurers and other regulated

entities for sale in New York to individual or group consumers for compliance with applicable laws, rules and

regulations. Legal and actuarial reviews are performed to ensure that New York consumers receive the

protection afforded by New York law and regulations and to ensure that such consumers are treated in a fair

and equitable manner by authorized life insurers and other regulated entities.

The Life Bureau regulates the corporate conduct of authorized insurers through: the establishment of

corporate standards (corporate governance, holding company, licensing requirements, etc.); the enforcement

of statutory and regulatory corporate governance standards; and the review and approval of activities

including licensing, corporate reorganizations, mergers, acquisitions, demutualization and holding company

transactions. In so doing, the Bureau verifies that statutory and regulatory requirements are met; ensures the

prudent conduct of insurers; and protects policyholder interests.

BANKING DIVISION OVERVIEW

The entities regulated and supervised within the Banking Division provide for a healthy, highly competitive

financial center, that enhances the liquidity of the local and national financial markets. These entities are also

key contributors to New York State’s labor force and economic vitality.

Community and Regional Banks

The Community and Regional Banks (CRB) Unit is responsible for the prudential regulation of community and

regional banks, credit unions, and other depository institutions through annual and periodic target

examinations and continuous supervision. CRB staff review the compliance of the supervised institutions with

applicable New York State and Federal laws and regulations. CRB partners with the Federal Deposit Insurance

Corporation, the Federal Reserve Bank of New York, and the National Credit Union Administration in joint

supervision.

In 2018, CRB had supervisory oversight of a total of 78 banking institutions, including 42 commercial banks, 17

trust companies, 18 savings banks, and one savings and loan association. CRB also provides regulatory

supervision for 15 credit unions with total assets of $6.5 billion, five charitable foundations, two foreign

branches, and two New York State-regulated corporations. The aggregate assets of institutions supervised by

CRB total more than $345 billion.

On October 29, 2018, DFS approved Generations Bank’s application to organize Generations Commercial Bank,

a New York State-chartered bank, for the purpose of entering the municipal banking business. Generations

Commercial Bank received an authorization certificate on December 14, 2018.

Foreign and Wholesale Banks

Foreign and Wholesale Banks (FWB) is responsible for the regulatory oversight of branches, agencies, and

representative offices of Foreign Banking Organizations, wholesale domestic banks, Article XII investment

companies and one private bank. Given the global nature of bank regulation, the Department maintains strong

relationships with foreign banks’ home country bank supervisory authorities.

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 17

During 2018, a total of 134 institutions with assets of more than $2.6 trillion were subject to the division’s

regulatory oversight. This included 80 branches, 10 agencies and 29 representative offices of Foreign Banking

Organizations as well as three Article XII institutions, four trust companies and one limited purpose trust

companies, two commercial banks and one private bank.

Licensed Financial Services

Licensed Financial Services (LFS) supervises budget planners, check cashers, licensed lenders, money

transmitters, premium finance agencies, and sales finance companies. At year-end 2018, the Department had

regulatory oversight of 31 budget planners, 102 check cashers, 16 licensed lenders, 115 money transmitters,

41 premium finance agencies, and 94 sales finance companies.

REAL ESTATE FINANCE DIVISION OVERVIEW

The Real Estate Finance Division is responsible for regulating all real estate and homeowner issues, ranging

from mortgage origination and servicing to managing the state-wide registry of vacant and abandoned

properties created under the Governor’s Vacant and Abandoned Properties Law to ensure that banks and

mortgage servicers fulfill certain maintenance obligations at “zombie” properties. The Division oversees the

Mortgage Banking Unit and the Mortgage Assistance Unit.

Mortgage Banking

The Mortgage Banking Unit is responsible for the licensing and supervision of mortgage bankers, mortgage

brokers, mortgage loan servicers, and mortgage loan originators conducting business in New York State. At

year-end 2018, Mortgage Banking supervised 505 registered mortgage brokers and 168 licensed mortgage

bankers operating through 82 and 870 branch offices, respectively. Mortgage Banking also has supervisory

authority for 34 registered mortgage loan servicers and 9,598 licensed mortgage loan originators.

Mortgage Assistance Unit

The mission of the Mortgage Assistance Unit (MAU) is to ensure that mortgage bankers, brokers, servicers,

and loan originators licensed by the Department are in compliance with applicable laws and regulations in

providing financial services to New York residents. To achieve this end, the MAU acts as an intermediary

between consumers and financial institutions to resolve requests for assistance and answer inquiries

concerning real estate-related financial products. The MAU works to identify patterns of non-compliance and

advise the Superintendent on emerging policy issues. The MAU is also responsible for handling the DFS

registry of vacant and abandoned properties.

FINANCIAL FRAUDS AND CONSUMER PROTECTION DIVISION

The Department’s Financial Frauds and Consumer Protection Division (FFCPD) is responsible for combating

insurance and banking fraud, as well as frauds against users of financial products and services including

consumers and investors.

As required by the Financial Services Law, the FFCPD submitted its 2018 Annual Financial Fraud and Consumer

Protection Division Report on March 15, 2018.

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 18

The FFCPD encompasses the Civil Investigations Unit, the Criminal Investigations Unit; the Consumer

Assistance Unit; the Consumer Examinations Unit; the Disciplinary Unit; the Student Protection Unit; and the

Holocaust Claims Processing Office.

Civil Investigations Unit

The Civil Investigations Unit includes a staff of attorneys who investigate civil financial fraud and misconduct,

including violations of the financial services law, other consumer and fair lending laws, the banking law and

the insurance law. In 2017, the Civil Investigations Unit conducted investigations in a number of areas

including payday loan debt collectors and loan servicers, the bail bond industry, the title insurance industry,

unfair insurance claims settlement practices, and pursued a number of initiatives including preventing elder

financial abuse and combatting improper contestable claims practices.

Criminal Investigations Unit

The Criminal Investigations Unit, comprising the Insurance Frauds Bureau (IFB) and the Criminal Investigations

Bureau (CIB), conducts specialized investigations into criminal conduct involving the financial services industry

and works cooperatively with law enforcement and regulatory agencies at the federal, state, county and local

levels. IFB investigates and combats healthcare fraud, which affects three major types of insurance: accident

and health, private disability, and no-fault. CIB investigates violations of the New York Banking Law, certain

enumerated misdemeanors and/or felonies under the New York Penal Law, as well as violations of anti-money

laundering laws, terrorist financing and crimes relating to residential mortgage fraud. CIB also reviews the

criminal histories of applicants for mortgage loan originator licenses to assist the Mortgage Banking and Legal

Divisions in their determinations of whether applicants meet the statutory requirements to be licensed or

registered as a mortgage loan originators, and conducts due diligence on applicants for a variety of licenses

issued by the Department, including money transmitter, check casher and BitLicenses.

Consumer Assistance Unit

The Consumer Assistance Unit (CAU) is responsible for receiving, investigating and resolving consumer

complaints involving insurance, banking and other financial issues through informal mediation and

negotiation. In 2018, the CAU recovered $50,676,018 for 10,215 consumers, which included refunds from

insurers, reinstatement of lapsed policies, payment for denied medical claims, and coverage of disaster-

related claims that had been previously denied.

Licensing Unit

The Licensing Unit oversees the licensing and activities of licensed individuals and entities that conduct

insurance business in New York State. The goals of the Unit are to protect the public and ensure that licensees

act in accordance with applicable insurance laws and regulations.

There are currently more than 340,000 insurance producer licensees in New York, including agents, brokers,

adjusters, excess line brokers, life settlement brokers, independent and public adjusters, reinsurance

intermediaries, bail agents, title agents, and life settlement brokers. The unit, in collaboration with the

Producer Investigations and Disciplinary Units, reviews licensing applications, monitors the insurance

marketplace to determine if unlawful or unlicensed activity is occurring and, if necessary, and takes steps to

ensure that individuals or entities either achieve compliance or cease activities.

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 19

The Licensing Unit reviews applications, issues licenses, and processes renewal and relicensing applications for

insurance companies, as well as licensed producers. In 2018, the Unit issued 196,944 licenses and collected

more than $23.7 million in fees. In addition, the Licensing Unit monitors, approves, audits, and supervises the

administration of the pre-Licensing education program courses and the continuing education program. The

Licensing Unit is the agent for service of process for licensed and unauthorized companies; in 2018, it accepted

service of process for 16,425 actions against insurance companies.

Consumer Examinations and Community Development Unit

The mission of the Consumer Examination Unit (CEU) is to maintain and enhance consumer confidence in New

York’s banking system by ensuring that regulated institutions abide by the State’s consumer protection, Fair

Lending and Community Reinvestment Act (CRA) laws and regulations; increase consumer access to traditional

banking services in under-served communities by effectively administering the Department’s Banking

Development District program and conducting outreach; and harmonize the timing of FFCPD’s examination

and enforcement activities with those of the Department’s federal counterparts.

Student Protection Unit

The mission of the Student Protection Unit (SPU) within FFCPD is to serve as consumer watchdog for New

York’s students. SPU is dedicated to investigating potential consumer protection violations and distributing

clear information that students and their families can use to help them make informed, long-term financial

choices.

In addition to conducting investigations, the SPU reviews and successfully resolves complaints regarding

student financial products and services, including student loans, student banking products, student debt relief

services, and student health insurance. The SPU accepts complaints online and by mail.

The SPU also maintains and regularly updates a comprehensive Student Lending Resource Center on the

Department’s website. The Student Lending Resource Center includes tips for prospective college students,

their families, and graduates already in repayment to help them navigate the financial decisions surrounding

paying for college.

Holocaust Claims Processing Office

The Holocaust Claims Processing Office (HCPO) helps Holocaust victims and their heirs recover assets

deposited in banks, unpaid proceeds of insurance policies, and artworks that were lost, looted or sold under

duress. The HCPO accepts claims for Holocaust-era looted assets from anywhere in the world and charges no

fees for its services. In 2018, HCPO successfully resolved 627 claims of 111 individuals in which an offer was

presented, or the asset deemed non-compensable. Claimants received $1,317,638 in offers in 2018.

Since its inception, the HCPO has successfully resolved 16,082 claims of 5,363 individuals in which an offer was

presented, or the asset was deemed non-compensable. To date, the HCPO has secured 8,446 offers; their

combined total for bank, insurance, and other losses amounts to $178,247,630. The 2018 HCPO Annual Report

is available on the Department website.

COMPLIANCE DIVISION OVERVIEW

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 20

The Compliance Division continues to improve processes, move decision-making forward, and analyze possible

compliance failures at regulated institutions. DFS’s Compliance Division has undertaken several large projects

aimed at streamlining and modernizing DFS procedures to ensure efficient and effective supervisory activities.

The Compliance Division continues to oversee the implementation of DFS’s first-in-the-nation cybersecurity

regulation, which became effective March 1, 2017. As part of implementation of the regulation, the

Compliance Division enhanced the web portal that allows regulated entities to securely report cybersecurity

events and other required filings. As all transitional dates passed, the division continues to monitor

compliance by DFS regulated entities with regulation.

The Compliance Division includes a team devoted to development and delivery of training for DFS staff. This

team has designed and launched training programs to further build internal capabilities and organization-wide

activities, including training over 600 examiners on DFS’s cybersecurity regulation, Anti Money Laundering and

Bank Secrecy Act laws. In addition, the team continues to train DFS staff on existing and new developments in

the financial markets, as well as provide management training.

ENFORCEMENT DIVISION OVERVIEW

The Enforcement Division ensures that regulated entities comply with New York and federal law in relation to

their activities serving the public. In 2018, these actions resulted in significant consent orders and monetary

penalties of nearly $800 million against global banks for violations of AML and BSA laws.

CAPITAL MARKETS/RESEARCH TRENDS DIVISION OVERVIEW

The Capital Markets/Research Trends Division provides the Department's expertise in complex financial

products (bonds, equities, credit, derivatives, and commodities), enterprise risk management, financial

analysis, information technology, internal controls and audit, research, fiduciary controls, regulatory

accounting, and new financial products. The division works with the other DFS divisions in examinations and

also conducts targeted examinations independently. The Division has the primary regulatory responsibility for

the New York State-based public retirement systems and financial guaranty insurance companies. In addition,

it leverages the business intelligence that DFS gathers with the aim of analyzing this data to identify emerging

risks and macroeconomic trends that can be developed into topical reports and regular industry analysis.

As the supervisor of New York State’s actuarially funded public retirement systems, Capital Markets continued

its examinations of the New York State and Local Employee Retirement System, the New York City Employee

Retirement System, New York City Teachers’ Retirement System, the New York City Fire Department Pension

Fund, and the New York City Board of Education Retirement System.

OFFICE OF FINANCIAL INNOVATIONS OVERVIEW

The Office of Financial Innovation monitors developments concerning the cybersecurity practices of regulated

companies and is responsible for DFS’s expanded specialty cyber and virtual currency examiner staffs;

developing expanded examination and supervision protocols; and developing key initiatives and compliance

measures, including increasing challenges posed by the continued emergency of the virtual currency

marketplace, as well as other innovations.

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 21

DFS granted five new virtual currency licenses in 2018 in accordance with the Department’s 2015 regulation

requiring a license to engage in the virtual currency business.

LIQUIDATION BUREAU OVERVIEW

The New York Liquidation Bureau (NYLB) carries out the duties of the New York Superintendent in her capacity

as receiver of impaired or insolvent insurance companies (estates) under New York Insurance Law Article 74.

The NYLB receives no funding from the State budget; rather, its expenses are paid from the assets of the

estates under receivership, and reimbursements from the New York Property/Casualty Insurance Security

Fund and the Public Motor Vehicle Liability Security Fund, established under Insurance Law Article 76, and the

Workers’ Compensation Security Fund, established under New York Workers’ Compensation Law Article 6-A,

which are paid from assessments on industry.

For each estate, the Superintendent is appointed Receiver by the Supreme Court of the State of New York.

Thereafter, the Court supervises the Receivership and, by extension, the NYLB. Acting on behalf of the

Receiver, the NYLB maximizes the assets and resolves the liabilities of the estates. The goal of a receivership is

either to rehabilitate the insurer by removing the causes and conditions of the receivership or, if that is not

possible, to liquidate it in order to distribute the assets to policyholders and creditors. In addition, the NYLB

performs claims-handling and certain payment functions relating to the Security Funds. The Security Funds

pay eligible claims remaining unpaid due to the inability of an insolvent insurer to meet its obligations to

policyholders.

At the end of 2018, the NYLB managed 18 domestic insurance companies and 11 fraternal benefit societies in

liquidation. The Receiver also managed 10 ancillary receiverships for insurance companies in liquidation in

other states for the purpose of making eligible payments from the security funds. The combined number of

receiverships (including domestic, fraternal and ancillary estates) managed by the Superintendent totaled 39

in 2018.

The NYLB closed one domestic receivership (Drivers Insurance Company) and one ancillary receivership

(Legion Insurance Company) in 2018. In addition, the Superintendent was appointed liquidator of two new

receiverships (Cuatro, LLC, and Touchstone Health HMO, Inc.) and one ancillary estate (Guarantee Insurance

Company) in 2018.

REGULATORY AND LEGI SLATIVE ACTIVITIES

REGULATIONS

Proposed, adopted on an emergency basis, and final adoptions of regulations completed during 2018 can be

found on our website.

INDUSTRY AND CIRCULAR LETTERS

Banking Industry Letters and Insurance Circular Letters for 2018, as well as the current and prior years can be

found on our website.

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 22

CHANGES TO THE BANKING, INSURANCE AND FINANCIAL SERVICES LAWS

Legislative Summaries regarding changes to Insurance, Banking, Financial Services and related laws can be

found on our website.

STATEMENTS, RECOMMENDATIONS AND DECISIONS OF THE SUPERINTENDENT

In 2018, the Superintendent issued several public statements, including support of the Affordable Care Act, as

well as opposition to the OCC’s decision to accept fintech charter applications. They can be found on the DFS

website under Superintendent’s Statements.

In addition, the Superintendent exercised her Wild Card Authority, granted under Banking Law, five times in

2018, as discussed below. The Wild Card authority allows the Superintendent to react quickly to evolving

federal banking regulations. When changes in federal statutes, regulations or interpretations grant powers to

federally chartered institutions that state-chartered institutions do not enjoy, the Superintendent may

authorize one or more state-chartered banking organizations of the same type to exercise the same powers.

Additional information can be found in the 2018 Wild Card annual report, available on the DFS website.

2018 Wild Card authorizations:

 Relief to Convert Directly from a Stock Form Savings Bank to a Commercial Bank: This order permits a

New York State chartered stock-form savings banks to convert directly from a stock-form savings bank

to a New York State chartered commercial bank. There is no provision of the Banking Law that permits

a stock-form savings bank to convert directly to a New York State chartered commercial bank, whereas

under 12 C.F.R. Section 5.24, a federally chartered stock savings association is permitted to convert

directly to a national bank. This approval provides parity between New York State chartered stock-form

savings banks and their federally chartered counterparts.

 Reimbursement of Board Members of New York State Chartered Credit Unions for Qualifying Health

Insurance Premiums: This order authorizes New York State Chartered Credit Unions to reimburse

members of their board of directors for reasonable health insurance premiums covering the director

only to the same extent that a federally chartered credit union may reimburse members of its board of

directors for reasonable health insurance premiums for the director only, provided that such

reimbursement is for health insurance that is fully insured (not self-funded), is written by an insurer

authorized to write accident and health insurance in New York State, and the health insurance policy is

a policy approved by the Department that complies with the Affordable Care Act and New York

Insurance Law and regulations. This approval provides parity between New York State-chartered credit

unions and federal credit unions.

 Order to Permit New York State Chartered Credit Unions to Accept Secondary Capital and

Nonmember Deposits: This order permits a New York State-chartered credit union that has received a

low-income credit union designation from the Superintendent to, with the prior specific approval of,

and subject to the conditions imposed by, the Superintendent, accept secondary capital and

nonmember deposits to the same extent that a federally chartered credit union with a low-income

designation is permitted to do so. This approval provides parity between New York State-chartered

credit unions and federal credit unions.

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 23

 Adjustment of Minimum Interest Rate that Certain Mortgage Investing Institutions Pay on Certain

Escrow Accounts: This order establishes the minimum rate of interest to be paid by New York State-

chartered banks, private bankers, trust companies, savings banks, savings and loan associations and

credit unions on escrow accounts (as such term is defined in Section 14-b of the Banking Law) in

connection with loans secured by mortgages on one to six family residences that are occupied by the

owner or on any property owned by a cooperative apartment corporation. This order is to achieve or

maintain parity between New York State-chartered banks, private bankers, trust companies and

national banks; savings banks, savings and loan associations and federal savings associations; and

credit unions and federal credit unions.

 Order Permitting New York State Chartered Mutual Savings Banks or Savings and Loan Associations

to Form a Two-Tier Mutual Holding Company Structure: This order permits a New York State-

chartered mutual savings bank or savings and loan association to form a two-tier mutual holding

company structure to the same extent as a federal savings association.

LEGISLATIVE RECOMMENDATIONS FOR 2019

Codification of the Affordable Care Act: This proposal would protect the health of New Yorkers by ensuring

access to affordable, high quality health insurance coverage.

Licensing and Regulation of Student Loan Servicers: Student loan servicers provide billing and other services

related to federal student loans. This proposal would empower the Department of Financial Services to license

and regulate the student loan servicer industry.

Medical Indemnity Fund: This proposal would transfer the custody and administration of the Medical

Indemnity Fund from the Department of Financial Services to the Department of Health.

In-Vitro Fertilization: To promote safer and more affordable reproductive health, this initiative would provide

insurance coverage for 3 cycles of in-vitro fertilization coverage used in the treatment of infertility.

Mental Health Parity: To ensure New Yorkers suffering from Mental Health and Substance Use Disorders are

not restricted from accessing health insurance benefits, this proposal would expand and enforce health

insurance parity laws.

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 24

BANKI NG STATISTIC S

SUMMARY OF SUPERVISED INSTITUTIONS

CONDITION OF ALL PRINCIPAL BANKING AND LENDING FACILITIES IN NEW YORK

Number of Institutions Assets

Dollars in Thousands

New York State NYC Rest of State New York State NYC Rest of State

All Institutions *

656 268 372 3,301,415,400

2,835,785,294

458,716,845

Commercial Banks **

124 58 66 944,634,815

642,247,603

302,387,212

Savings Banks

34 12 22 107,038,173

25,499,912

81,538,261

Savings & Loan Associations

7 1 6 3,344,398

1,882,986

1,461,412

Credit Unions

340 70 270 83,921,685

13,224,087

70,697,598

Safe Deposit Companies

2 0 2 609

609

Investment Companies (Article XII)

3 2 1 1,775,545

1,775,545

Licensed Lenders ***

16 3 4 1,508,935

53,484

32,623

Foreign Branches

109 109 0 2,049,479,746

2,049,479,746

Foreign Agencies

11 10 1 104,197,773

101,598,643

2,599,130

Virtual Currency Companies***

10 3 0 5,498,529

8,096

State Charter *

236 144 76 2,550,768,767

2,306,040,731

237,814,775

Commercial Banks **

81 40 41 784,692,359

626,443,200

158,249,159

Savings Banks

18 4 14 91,577,001

18,051,883

73,525,118

Savings and Loan Associations

1 0 1 130,613

130,613

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 25

Number of Institutions Assets

Dollars in Thousands

Credit Unions

6,471,327

3,193,804

3,277,523

Safe Deposit Companies

609

Investment Companies (Article XII)

1,775,545

Licensed Lenders ***

1,508,935

53,484

32,623

Foreign Branches

1,554,941,696

Foreign Agencies

104,172,153

101,573,023

2,599,130

Virtual Currency Companies***

5,498,529

8,096

Federal Charter *

420

124

296

750,646,633

529,744,563

220,902,070

Commercial Banks **

159,957,648

15,819,595

144,138,053

Savings Banks

15,461,172

7,448,029

8,013,143

Savings and Loan Associations

3,213,785

1,882,986

1,330,799

Credit Unions

325

258

77,450,358

10,030,283

67,420,075

Safe Deposit Companies

Investment Companies (Article XII)

Licensed Lenders

Foreign Branches

494,538,050

Foreign Agencies

25,620

Virtual Currency Companies

*Dollars may not add to total due to rounding.

**Banks, trust companies, limited purpose trust companies, and private bankers.

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 26

Number of Institutions Assets

Dollars in Thousands

*** 9 licensed institutions located outside New York State

Commercial Banks and Trusts

34.32%

Savings Banks

7.63%

Savings and Loan Associations

0.42%

Credit Unions

6.36%

Safe Deposit Companies

0.85%

Investment Companies

1.27%

Licensed Lenders

6.78%

Foreign Branches

33.90%

Foreign Agencies

4.24%

Virtual Currency Companies

4.24%

Number of Institutions

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 27

Commercial Banks and Trusts

30.76%

Savings Banks

3.59%

Savings and Loan Associations

0.01%

Credit Unions

0.25%

Safe Deposit Companies

0.00%

Investment Companies

0.07%

Licensed Lenders

0.06%

Foreign Branches

60.96%

Foreign Agencies

4.08%

Virtual Currency Companies

0.22%

Assets

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 28

NEW YORK STATE CHARTERED AND LICENSED BANKING, LENDING AND FINANCIAL SERVICES INSTITUTIONS

Type of Institution

Number of Institutions

Number of Domestic Offices

Banks

43 320

Trust Companies

22 1,268

Limited Purpose Trust Companies

15 21

Private Bankers

1 9

Savings Banks

18 555

Savings & Loans

1 2

Credit Unions

15 46

Safe Deposit Companies

2 2

Investment Companies (Article XII)

3 3

Licensed Lenders

16 143

Foreign Branches

80 95

Foreign Agencies

10 10

Holding Companies - One Bank

38 38

Holding Companies - Multi Bank

9 9

Mutual Holding Companies

1 1

Foreign Representative Offices

29 29

Sales Finance Companies

94 165

Premium Finance Agencies

41 90

Check Cashers (including Commercial)

102 581

Money Transmitters

115 384

Budget Planners

31 88

Mortgage Bankers

172 981

Mortgage Brokers

518 622

Mortgage Loan Servicers

34 112

Common Trust Funds

60 60

NYS Regulated Corporations

3 3

Charitable Foundations

2 2

Virtual Currency

10 10

Credit Reporting Agencies

13 13

Total

1,498 5,662

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 29

CONVERSION FROM STATE CHARTER TO FEDERAL CHARTER

Name Location Name After Change Effective Date

None

CONVERSION FROM FEDERAL CHARTER TO STATE CHARTER

Name Location Name After Change Effective Date

Northern Federal Credit Union Watertown, NY Northern Credit Union October 1, 2018

BANK MERGERS AND ACQUISITIONS

Name Institution Type Location Acquiring Bank Effective Date

Genesee Valley Trust Company Trust Company Pittsford, New York

The Canandaigua National

Bank and Trust Company

March 1, 2018

New Resource Bank

Out-of-State

Commercial

San Francisco, California Amalgamated Bank May 18, 2018

Medina Savings and Loan

Association

Savings and Loan

Association

Medina, New York Generations Bank

September 29,

2018

First American International Bank Commercial Bank Brooklyn, New York Royal Business Bank October 15, 2018

New York Commercial Bank Commercial Bank Islandia, New York New York Community Bank October 20, 2018

PCSB Commercial Bank Commercial Bank Brewster, New York PCSB Bank December 31, 2018

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 30

LIQUIDATIONS/SURRENDERS

Name Institution Type Location

Effective

Date

Bank of Scotland PLC NY Branch Foreign Branch 1095 Avenue of The Americas, New York, NY 7/11/2018

Caixa Geral De Depositos NY Branch Foreign Branch 733 Third Avenue, New York, NY 9/26/2018

Jamestown Post Office Employees Credit Union Credit Union 300 East Third Street, Jamestown, New York 9/14/2018

NEW CHARTERS/LICENSES

Name Institution Type Location Effective Date

Generations Commercial Bank Commercial Bank Seneca Falls, NY 12/31/2018

Northern Credit Union Credit Union Watertown, NY 10/1/2018

Lloyds Bank Corporate Markets PLC Foreign Branch New York NY 7/27/2018

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 31

CONDITION OF SUPERVISED INSTITUTIONS

CONDITION OF COMMERCIAL BANKS, TRUSTS AND PRIVATE BANKERS

COMMERCIAL BANKS, TRUSTS

AND PRIVATE BANKERS

Assets

Cash and Due

from Banks

Total

Securities

Federal Funds

Sold and

Repos

Loans and

Leases Net

Premises and

Equipment

All Other

Assets*

Total Assets

Dollars in Thousands

Commercial Banks

Adirondack Bank

17,396

272,343

1,200

495,601

5,037

29,868

821,445

Alden State Bank

5,145

53,666

1,512

257,306

1,985

12,291

331,905

Alma Bank

66,119

34,447

145

1,000,191

7,897

33,410

1,142,209

Alpine Capital Bank

126,454

49,818

88,067

162

1,738

266,239

Amerasia Bank

58,864

1,136

549,656

7,787

5,323

622,766

American Community Bank

10,970

27,421

160,429

899

8,283

208,002

Bank Leumi USA

224,700

1,521,086

4,990,131

66,652

276,918

7,079,487

Bank of Akron

8,180

37,627

285,797

4,950

13,414

349,968

Bank of Cattaraugus

3,954

8,163

8,165

359

609

21,250

Bank of Holland

3,947

37,458

88,345

2,354

3,221

135,325

Catskill Hudson Bank

37,437

115,127

299,407

5,136

6,875

463,982

Cattaraugus County Bank

14,731

27,154

189,349

4,941

11,609

247,784

Citizens Bank of Cape Vincent

7,350

26,042

35,184

914

1,229

70,719

Country Bank

17,741

143,816

555,370

1,934

8,811

727,672

Emigrant Mercantile Bank

3,444

Empire State Bank

19,924

20,170

350,004

4,549

8,206

402,853

Generations Commercial Bank

2,500

Genesee Regional Bank

39,198

101,350

427,982

1,752

11,387

581,669

Global Bank

15,551

4,461

144,629

1,684

3,998

170,323

Gold Coast Bank

36,811

69,795

1,566

441,934

1,494

4,737

556,337

Greater Hudson Bank

13,740

121,508

380,038

1,626

20,984

537,896

Greene County Commercial Bank

56,753

373,661

2,761

433,175

Hanover Community Bank

11,818

12,884

43,620

559,399

13,956

9,826

651,503

Interaudi Bank

643,200

502,490

855,143

3,250

13,119

2,017,202

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 32

COMMERCIAL BANKS, TRUSTS

AND PRIVATE BANKERS

Assets

Cash and Due

from Banks

Total

Securities

Federal Funds

Sold and

Repos

Loans and

Leases Net

Premises and

Equipment

All Other

Assets*

Total Assets

Jeff Bank

59,184

98,873

311,817

5,950

25,871

501,695

Mahopac Bank

13,036

322,410

956,091

14,239

59,408

1,365,184

Metropolitan Commercial Bank

232,950

37,120

1,850,988

6,877

52,793

2,180,728

NewBank

163,184

1,053

248,211

2,365

3,312

418,125

Pathfinder Bank

26,311

231,356

612,974

18,981

40,911

930,533

PCSB Bank

139,905

458,372

1,550

898,216

11,429

45,277

1,554,749

Pioneer Commercial Bank

224,302

14,668

161

239,183

Savoy Bank

32,511

3,402

306,397

311

6,284

348,905

Shinhan Bank America

87,831

47,068

1,265,256

9,135

13,658

1,422,948

Signature Bank

432,784

9,032,345

36,678,427

46,532

1,174,728

47,364,816

Spring Bank

8,631

28,162

142,668

331

2,253

182,045

The Berkshire Bank

158,232

180,318

371,092

1,635

8,761

720,038

The Westchester Bank

50,738

70,857

748,954

1,826

34,430

906,805

Tioga State

Bank

7,016

130,642

316,487

3,494

26,102

483,741

United Orient Bank

8,246

1,974

1,000

78,455

1,454

91,208

USNY Bank

16,031

18,484

359,942

5,494

5,484

405,435

Victory State Bank

32,165

206,568

376

126,661

1,296

10,052

377,118

Woori America

Bank

115,960

202,316

1,559,732

8,719

59,111

1,945,838

WSB Municipal Bank

15,439

94,257

795

110,491

Trust Companies

Amalgamated Bank

82,436

1,179,251

3,211,321

21,654

186,261

4,680,923

Bank of Millbrook

18,858

94,584

3,667

93,262

2,637

5,727

218,735

Bank of Richmondville

12,992

38,114

1,300

82,521

1,017

5,028

140,972

Bank of Utica

33,259

932,856

73,853

22,060

10,649

1,072,677

BNB Bank

295,368

841,049

3,244,393

35,008

283,614

4,699,432

Chemung Canal Trust

Company

129,308

246,169

1,293,463

24,979

57,875

1,751,794

Deutsche Bank Trust Company Americas

17,588,000

5,000

9,784,000

10,210,000

22,000

1,572,000

39,181,000

Five Star Bank

98,542

892,258

3,055,552

39,268

186,819

4,272,439

Flushing Bank

118,118

840,864

5,530,539

30,418

313,951

6,833,890

Goldman Sachs Bank USA

30,522,000

2,936,000

36,510,000

75,981,000

50,000

45,518,000

191,517,000

Habib American Bank

628,247

56,551

909,957

3,290

25,141

1,623,186

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 33

COMMERCIAL BANKS, TRUSTS

AND PRIVATE BANKERS

Assets

Cash and Due

from Banks

Total

Securities

Federal Funds

Sold and

Repos

Loans and

Leases Net

Premises and

Equipment

All Other

Assets*

Total Assets

Israel Discount Bank of New York

357,887

2,354,880

6,119,243

23,920

373,286

9,229,216

Manufacturers and Traders Trust

Company

9,641,162

12,068,166

87,281,714

621,830

10,023,275

119,636,147

Mizuho Bank (USA)

566,725

25,522

4,919,618

2,041

318,202

5,832,108

Orange Bank &Trust

Company

18,371

255,536

726,413

13,698

42,402

1,056,420

Popular Bank

446,936

1,519,269

6,562,228

54,670

798,256

9,381,359

Solvay Bank

17,535

250,359

603,375

8,911

27,950

908,130

Steuben Trust Company

8,377

180,323

338,388

6,411

17,778

551,277

The Adirondack Trust Company

69,971

259,357

749,037

27,380

42,587

1,148,332

The Bank of Castile

22,140

302,736

1,153,315

14,386

28,637

1,521,214

The Bank of New York Mellon

84,268,000

116,053,000

33,291,000

26,039,000

1,586,000

25,174,000

286,411,000

Tompkins Trust Company

28,727

606,519

1,334,981

58,994

81,954

2,111,175

Limited Purpose Trust Companies

American Stock Transfer & Trust

Company, LLC

7,132

21,262

517,905

546,299

Anthos Trust

Company, LLC

527

5,182

342

6,051

Coinbase Custody Trust Company, LLC

14,766

426

15,192

Continental Stock Transfer & Trust

Company

2,912

1,036

4,278

3,209

11,435

Equiniti Trust Company

42,228

8,510

238,972

289,710

ESL Trust

Services, LLC

5,830

5,905

Fiduciary Trust Company International

109,519

178,155

736

52,510

340,920

Gemini Trust Company

6,300

56,920

17,456

13,075

93,751

2,460

449

Law Debenture Trust Company of New

York

2,665

244

2,909

Market Street Trust Company

802

3,475

1,658

556

6,491

New York Life Trust Company

240

7,220

2,018

9,478

NY Digital Trust Company LLC

12,000

OFI Global Trust Company

10,464

5,324

15,788

Paxos

Trust Company LLC (ITBIT TR CO

LLC)

8,159

30,478

38,732

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 34

COMMERCIAL BANKS, TRUSTS

AND PRIVATE BANKERS

Assets

Cash and Due

from Banks

Total

Securities

Federal Funds

Sold and

Repos

Loans and

Leases Net

Premises and

Equipment

All Other

Assets*

Total Assets

Depository Trust Company, The

2,877,384

43,730

110,854

3,031,968

Private Bankers

Brown Brothers Harriman & Co.

2,963,867

1,026,541

1,917,819

49,582

1,134,255

7,092,064

Total

154,297,673

157,969,224

79,640,988

300,425,487

3,095,930

89,263,057

784,692,359

*Includes FDIC Call Report items: other assets, trading assets, goodwill and intangible assets and other real estate owned

COMMERCIAL BANKS, TRUSTS

AND PRIVATE BANKERS

Liabilities and Equity

Total Deposits

Federal

Funds

Bought and

Sold

Trading

Liabilities &

Other

Borrowed

Money

Subordinat

ed Notes &

Debenture

All Other

Liabilities

Total

Liabilities

Total Equity

Capital

Total

Liabilities and

Capital

Dollars in Thousands

Commercial Banks

Adirondack Bank 683,191

30,873

38,810

6,762

759,636

61,809

821,445

Alden State Bank 285,523

4,000

916

290,439

41,466

331,905

Alma Bank 903,941

116,031

3,070

1,023,042

119,167

1,142,209

Alpine Capital Bank 214,473

2,832

217,305

48,934

266,239

Amerasia Bank 536,267

10,000

4,687

550,954

71,812

622,766

American Community Bank 173,331

5,000

2,777

181,108

26,894

208,002

Bank Leumi USA 5,689,830

431,926

139,161

6,260,917

818,570

7,079,487

Bank of Akron 299,093

13,399

2,136

314,628

35,340

349,968

Bank of Cattaraugus 19,298

19,314

1,936

21,250

Bank of Holland 119,122

6,000

237

125,359

9,966

135,325

Catskill Hudson Bank 429,300

887

430,187

33,795

463,982

Cattaraugus County Bank 221,254

5,091

226,345

21,439

247,784

Citizens Bank of Cape Vincent 64,314

224

64,538

6,181

70,719

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 35

COMMERCIAL BANKS, TRUSTS

AND PRIVATE BANKERS

Liabilities and Equity

Total Deposits

Federal

Funds

Bought and

Sold

Trading

Liabilities &

Other

Borrowed

Money

Subordinat

ed Notes &

Debenture

All Other

Liabilities

Total

Liabilities

Total Equity

Capital

Total

Liabilities and

Capital

Country Bank 608,117

42,500

3,147

653,764

73,909

727,673

Emigrant Mercantile Bank 500

514

2,930

3,444

Empire State Bank 299,378

70,000

4,174

373,552

29,301

402,853

Generations Commercial Bank 0

2,500

Genesee Regional Bank 480,239

40,000

2,787

523,026

58,643

581,669

Global Bank 141,695

7,000

1,058

149,753

20,570

170,323

Gold Coast Bank 478,333

20,000

1,225

499,558

56,779

556,337

Greater Hudson Bank 413,903

803

63,919

3,874

482,499

55,397

537,896

Greene County Commercial Bank 356,181

33,145

389,412

43,763

433,175

Hanover Community Bank 468,336

104,100

4,621

577,057

74,446

651,503

Interaudi Bank 1,729,389

123,000

6,079

1,858,468

158,734

2,017,202

Jeff Bank 443,232

5,775

449,007

52,687

501,694

Mahopac Bank 963,844

265,400

5,741

1,234,985

130,200

1,365,185

Metropolitan Commercial Bank 1,674,757

185,000

16,830

1,876,587

304,141

2,180,728

NewBank 361,439

3,000

5,675

370,114

48,011

418,125

Pathfinder Bank 731,010

118,534

6,221

855,765

74,768

930,533

PCSB Commercial Bank 1,301,590

39,216

8,201

1,349,007

205,742

1,554,749

Pioneer Commercial Bank 216,504

930

217,434

21,749

239,183

Savoy Bank 301,147

10,000

2,918

314,065

34,840

348,905

Shinhan Bank America 1,199,045

11,197

1,210,242

212,706

1,422,948

Signature Bank 36,382,379

820,000

4,970,000

258,174

527,124

42,957,677

4,407,139

47,364,816

Spring Bank 158,807

726

159,533

22,512

182,045

The Berkshire Bank 598,287

5,870

604,157

115,881

720,038

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 36

COMMERCIAL BANKS, TRUSTS

AND PRIVATE BANKERS

Liabilities and Equity

Total Deposits

Federal

Funds

Bought and

Sold

Trading

Liabilities &

Other

Borrowed

Money

Subordinat

ed Notes &

Debenture

All Other

Liabilities

Total

Liabilities

Total Equity

Capital

Total

Liabilities and

Capital

The Westchester Bank 717,777

22,422

53,275

4,546

798,020

108,785

906,805

Tioga State Bank 385,351

41,863

4,647

431,861

51,880

483,741

United Orient Bank 72,408

5,000

452

77,860

13,348

91,208

USNY Bank 356,232

4,000

2,293

1,765

364,290

41,145

405,435

Victory State Bank 340,281

2,272

342,553

34,565

377,118

Woori America Bank 1,617,586

43,739

18,311

1,679,636

266,201

1,945,837

WSB Municipal Bank 90,147

8,249

98,396

12,095

110,491

Trust Companies

Amalgamated Bank 4,106,896

92,875

49,413

4,249,184

431,739

4,680,923

Bank of Millbrook 193,610

1,732

195,342

23,393

218,735

Bank of Richmondville 124,544

895

125,439

15,533

140,972

Bank of Utica 835,458

13,246

848,704

223,973

1,072,677

BNB Bank 3,887,930

539

240,433

38,306

4,167,208

532,224

4,699,432

Chemung Canal Trust Company 1,574,464

4,304

14,860

1,593,628

158,166

1,751,794

Deutsche Bank Trust Company

Americas

27,350,000

1,011,000

336,000

1,300,000

29,997,000

9,184,000

39,181,000

Five Star Bank 3,375,390

64,000

407,506

26,290

3,873,186

399,253

4,272,439

Flushing Bank 4,963,833

1,134,994

74,019

6,172,846

661,044

6,833,890

Goldman Sachs Bank USA 137,463,000

3,814,000

12,024,000

4,250,000

6,210,000

163,761,000

27,756,000

191,517,000

Habib American Bank 1,459,889

23,256

1,483,145

140,041

1,623,186

Israel Discount Bank of New York 7,469,282

485,000

217,635

118,758

8,290,675

938,541

9,229,216

Manufacturers and Traders Trust

Company

91,644,153

607,532

9,729,235

1,391,053

1,358,186

104,730,159

14,905,988

119,636,147

Mizuho Bank (USA) 3,622,565

680,519

144,773

4,447,857

1,384,251

5,832,108

Orange Bank &Trust Company 915,325

35,500

12,331

963,156

93,264

1,056,420

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 37

COMMERCIAL BANKS, TRUSTS

AND PRIVATE BANKERS

Liabilities and Equity

Total Deposits

Federal

Funds

Bought and

Sold

Trading

Liabilities &

Other

Borrowed

Money

Subordinat

ed Notes &

Debenture

All Other

Liabilities

Total

Liabilities

Total Equity

Capital

Total

Liabilities and

Capital

Popular Bank 6,980,854

193,130

432,212

63,246

7,669,442

1,711,917

9,381,359

Solvay Bank 786,223

36,900

3,309

826,432

81,698

908,130

Steuben Trust Company 462,558

23,000

5,810

491,368

59,909

551,277

The Adirondack Trust Company 1,000,964

3,405

22,109

1,026,478

121,854

1,148,332

The Bank of Castile 1,193,260

5,903

191,800

9,396

1,400,359

120,855

1,521,214

The Bank of New York Mellon 243,299,000

4,784,000

5,878,000

515,000

6,102,000

260,578,000

25,833,000

286,411,000

Tompkins Trust Company 1,561,537

75,940

288,400

42,239

1,968,116

143,059

2,111,175

Limited Purpose Trust Companies

American Stock Transfer & Trust

Company, LLC

2,702

22,675

25,377

520,922

546,299

Anthos Trust Company, LLC 0

780

5,271

6,051

Coinbase Custody Trust Company,

LLC

1,537

13,655

15,192

Continental Stock Transfer & Trust

Company

3,671

7,764

11,435

Equiniti Trust Company 0

968

48,343

49,311

240,399

289,710

ESL Trust Services, LLC 0

3,308

144

3,452

2,453

5,905

Fiduciary Trust Company

International

28,248

312,672

340,920

Gemini Trust Company 0

6,871

21,362

28,233

65,518

93,751

Law Debenture Trust Company of

New York

2,460

449

2,909

Market Street Trust Company 0

424

2,565

2,989

3,502

6,491

New York Life Trust Company 0

1,901

7,577

9,478

NY Digital Trust Company LLC 0

12,000

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 38

COMMERCIAL BANKS, TRUSTS

AND PRIVATE BANKERS

Liabilities and Equity

Total Deposits

Federal

Funds

Bought and

Sold

Trading

Liabilities &

Other

Borrowed

Money

Subordinat

ed Notes &

Debenture

All Other

Liabilities

Total

Liabilities

Total Equity

Capital

Total

Liabilities and

Capital

OFI Global Trust Company 0

1,974

13,814

15,788

Paxos Trust Company LLC (ITBIT

TR CO LLC)

2,996

35,736

38,732

Depository Trust Company, The 0

2,392,534

639,434

3,031,968

Private Bankers

Brown Brothers Harriman & Co. 4,602,593

795,305

683,479

6,081,377

1,010,687

7,092,064

Total 611,400,159

11,922,547

39,429,041

6,414,227

19,682,154

688,848,128

95,844,231

784,692,359

CONDITION OF SAVINGS BANKS AND THRIFTS

SAVINGS BANKS AND THRIFTS

Assets

Cash and Due

from Banks

Total

Securities &

Trading Assets

Federal

Funds Sold

and Repos

Loans and

Leases Net

Premises &

Equipment

All Other

Assets*

Total Assets

Dollars in Thousands

Savings Banks

Apple Bank for

Savings

867,584

2,240,700

50,000

10,446,646

36,955

666,351

14,308,236

Cross County Savings Bank

32,032

27,335

324,674

22,248

14,516

420,805

Dime Community Bank

145,827

502,885

5,373,133

24,713

266,904

6,313,462

Elmira Savings Bank

19,429

32,569

479,469

16,730

41,926

590,217

Emigrant Bank

250,813

1,002,203

3,859,298

138,694

532,225

5,783,233

Fairport Savings Bank

4,720

24,383

283,881

2,731

10,854

326,569

First Central Savings Bank

40,705

53,033

462,551

1,062

26,814

584,165

Fulton Savings Bank

75,016

132,484

624

133,518

687

31,590

373,919

New York Community Bank

1,469,312

5,644,071

5,223

40,006,088

346,179

4,403,748

51,874,621

NorthEast Community Bank

42,510

14,811

4,331

742,780

17,038

39,213

860,683

Pioneer Savings Bank

53,339

111,419

3,117

1,028,920

42,010

48,162

1,286,967

Rhinebeck Bank

50,590

101,312

678,402

16,979

34,985

882,268

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 39

Ridgewood Savings Bank

101,311

1,305,130

3,843,835

14,917

269,190

5,534,383

Rondout Savings Bank

21,044

60,681

284,299

6,677

9,861

382,562

Sawyer Savings Bank

7,427

59,549

168,910

3,554

6,860

246,300

The North Country Savings Bank

16,273

1,852

100

217,393

5,401

16,502

257,521

Ulster Savings Bank

25,013

77,839

720,515

19,395

53,566

896,328

Watertown Savings Bank

38,964

123,868

433,850

13,159

44,921

654,762

Savings & Loans

Gouverneur Savings and Loan Association

7,083

15,033

94,756

2,453

11,288

130,613

Total

3,268,992

11,531,157

63,489

69,582,918

731,582

6,529,476

91,707,614

*Includes FDIC Call Report items: other assets, trading assets, goodwill and intangible assets and other real estate owned

CONDITION OF SAVINGS BANKS AND THRIFTS

SAVINGS BANKS AND

THRIFTS

Liabilities and Equity

Total

Deposits

Federal Funds

Bought &

Repos

Trading Liabilities &

Other Borrowed

Money

All Other

Liabilities

Total Liabilities

Total Equity

Capital

Total Liabilities

and Capital

Dollars in

Thousands

Savings Banks

Apple Bank for Savings

12,464,381

565,986

84,594

13,114,961

1,193,275

14,308,236

Cross County Savings Bank

352,114

15,000

4,983

372,097

48,708

420,805

Dime Community Bank

4,461,081

1,125,350

37,508

5,623,939

689,523

6,313,462

Elmira Savings Bank

492,784

31,000

8,484

532,268

57,949

590,217

Emigrant Bank

4,512,915

34,000

59,618

4,606,533

1,176,700

5,783,233

Fairport Savings Bank

222,622

71,826

2,460

296,908

29,661

326,569

First Central

Savings Bank

516,507

10,000

2,946

529,453

54,712

584,165

Fulton Savings Bank

251,038

11,500

8,807

271,345

102,574

373,919

New York Community

Bank

30,992,760

500,000

13,060,116

257,537

44,810,413

7,064,208

51,874,621

NorthEast

Community

Bank

690,800

45,130

7,792

743,722

116,961

860,683

Pioneer Savings Bank

1,119,866

32,828

7,880

1,160,574

126,394

1,286,968

Rhinebeck Bank

693,026

31,598

88,388

813,012

69,256

882,268

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 40

Ridgewood Savings Bank

4,304,341

422,085

88,467

4,814,893

719,490

5,534,383

Rondout Savings Bank

325,891

17,000

2,938

345,829

36,732

382,561

Sawyer Savings Bank

196,925

21,000

3,455

221,380

24,920

246,300

The North Country

Savings Bank

192,726

30,794

1,035

224,555

32,966

257,521

Ulster Savings Bank

774,562

16,975

6,275

797,812

98,516

896,328

Watertown Savings Bank

543,381

5,250

5,245

553,876

100,886

654,762

Savings & Loans

Gouverneur Savings and

Loan Assoc.

83,697

12,000

4,900

100,597

30,016

130,613

Medina Savings and Loan

Association

Total

63,191,417

534,000

15,525,438

683,312

79,934,167

11,773,447

91,707,614

CONDITION OF SAFE DEPOSIT COMPANIES

SAFE DEPOSIT COMPANIES

Assets

Cash and

Due from

Banks

Total

Securities

Federal

Funds Sold

and Repos

Loans and

Leases Net

Customers'

Liability on

Acceptances

Premises

Vault and

Equipment

Investment in

Unconsolidated

Subsidiaries

Other

Assets

Total

Assets

Dollars in Thousands

Akron Safe Deposit Company

279

283

609

Zurich Depository Corporation*

*In the final stage of liquidation

SAFE DEPOSIT COMPANIES

Liabilities And Equity

Key &

Box

Deposits

Unearned

Deferred

Income

Other

Borrowed

Money

Acceptances

Outstanding

Subordinated

Notes and

Debentures

All

Other

Liabilities

Total

Liabilities

Total

Equity

Capital

Total

Liabilities

and

Capital

Dollars in Thousands

Akron Safe Deposit Company

609

Zurich Depository Corporation*

*In the final stage of liquidation

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 41

CONDITION OF CREDIT UNIONS

CREDIT UNIONS

Assets

Cash and Due

from Banks

Total

Investment

Loans

Held for

Sale

Loans and

Leases Net

Bank

Premises &

Equipment

NCUSIF

Deposit

Other

Assets

Total

Assets

Dollars in Thousands

AmeriCU

Credit Union

160,492

124,601

1,229

1,209,761

32,571

12,479

37,575

1,578,708

Branch 6000 NALC Credit Union

935

3,488

3,643

581

8,734

Buffalo Service Credit Union

5,367

25,106

25,829

503

534

57,437

CFCU

Community Credit Union

155,851

91,915

783,808

11,109

8,224

10,641

1,061,548

Directors Choice Credit Union

156

1,492

7,833

382

9,943

Empire Branch 36 National Association of

Letter Carriers Credit Union

1,043

1,600

2,310

5,059

Erie County Employees Credit Union

1,210

13,832

10,111

231

955

26,345

Hudson River Community Credit Union

15,087

1,862

233,756

10,027

2,228

2,250

265,210

Municipal Credit Union

502,863

271,976

1,940,321

28,976

26,460

92,587

2,863,183

Newspaper Employees Credit Union

107

250

275

637

The Niagara Frontier Federal Employees

Credit Union

228

798

1,619

2,683

Northern Credit Union

7,445

554

230,471

9,662

2,291

2,632

253,055

Norton

Troy Employees Credit Union

384

3,816

1,730

6,006

Progressive Credit Union

33,619

4,999

237,959

3,643

2,103

43,239

325,562

Yonkers Postal Employees Credit Union

223

5,150

1,740

7,217

Total

885,010

551,439

1,229

4,691,166

96,110

54,879

191,494

6,471,327

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 42

CONDITION OF CREDIT UNIONS

CREDIT UNIONS

Liabilities and Equity

Total

Shares and

Deposits

Federal

Funds

Bought

and

Repos

Borrowin

gs Plus

Interest

Payable

Subordinat

ed Notes

and

Debentures

All Other

Liabilities

Total

Liabilities

Total

Equity

Capital

Total

Liabilities

and

Capital

AmeriCU Credit Union

1,363,725

50,000

15,572

1,429,297

149,411

1,578,708

Branch 6000 NALC Credit Union

8,134

8,137

597

8,734

Buffalo Service Credit Union

50,840

209

51,049

6,388

57,437

CFCU Community Credit Union

901,838

243

9,459

911,540

150,008

1,061,548

Directors Choice

Credit Union

8,447

8,448

1,495

9,943

Empire Branch 36 National Association of Letter

Carriers Credit Union

4,640

4,735

324

5,059

Erie County Employees Credit Union

22,936

144

23,082

3,263

26,345

Hudson River Community Credit Union

229,894

725

2,061

232,680

32,530

265,210

Municipal Credit Union

2,688,409

64,936

2,753,413

109,770

2,863,183

Newspaper Employees Credit Union

336

301

637

The

Niagara Frontier Federal Employees Credit

Union

2,264

2,268

415

2,683

NORTHERN CU

224,929

6,063

2,353

233,345

19,710

253,055

Norton

Troy Employees Credit Union

5,018

5,033

973

6,006

Progressive Credit

Union

242,052

85,137

8,508

335,697

(10,135)

325,562

Yonkers Postal Employees Credit Union

5,578

5,658

1,559

7,217

Total

5,759,040

142,240

103,438

6,004,718

466,609

6,471,327

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 43

CONDITION OF ARTICLE XII INVESTMENT COMPANIES

ARTICLE XII INVESTMENT

COMPANIES Assets

Cash and

Due from

Banks

Total

Securities

Federal

Funds

Sold &

Repos

Loans and

Leases

Net

Custom

er's

Liability

Accepta

nce

Premises

Equipmen

Investment

Unconsolidat

Subsidiaries

Other Assets

Total Assets

Dollars in Thousands

American Express Banking Corp

20,329

308,653

748,631

3,530

91,109

1,172,252

Community Building Fund, LLC

Western Union Financial Holdings,

L.L.C.

283,008

32,890

33,203

1,779

252,413

603,293

Total

303,337

341,543

781,834

5,309

343,522

1,775,545

ARTICLE XII INVESTMENT COMPANIES

Liabilities And Equity

Total

Deposits

Federal

Funds

Sold

and

Repos

Other

Borrowe

d Money

Due to

Affiliate

Subordinate

d Notes and

Debentures

All Other

Liabilities

Total

Liabilities

Total

Equity

Capital

Total

Liabilities

and Capital

Dollars in Thousands

American Express Banking Corp

313,395

264,514

460,124

1,038,033

134,219

1,172,252

Community Building Fund, LLC

Western Union Financial Holdings,

L.L.C.

358,907

244,386

603,293

Total

313,395

264,514

819,031

1,396,940

378,605

1,775,545

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 44

CONDITION OF LICENSED LENDERS

Applicable to NY Business

Total Assets Not

Applicable to NY

Business

LICENSED LENDERS

Assets

Loans and Leases

Net

Cash and

Due From

Banks

Furniture,

Fixtures &

Equipment

Other Assets Total Assets Total Assets

Dollars in Thousands

AmeriCredit Consumer Loan

Company, Inc.

138

485

623

CarFinance Capital LLC U/A/N

CarFinance.com

27,711

Grameen America, Inc.

43,179

1,064

6,201

50,444

52,743

103,187

Kashable LLC

2,032

433

2,556

36,285

38,841

LendingClub Corporation

247,268

10,585

257,853

3,561,674

3,819,527

Mariner Finance, LLC

41,349

101

41,491

444,079

485,570

New City Funding Corporation

27,344

1,155

148

28,647

13,690

42,337

Omni Financial of New York, Inc.

2,883

2,970

OneMain Consumer Loan, Inc.

53,627

OneMain Financial Group, LLC

192,657

1,662

1,450

15,644

211,413

7,794,636

8,006,049

Retail Charge Financial Services

Corp.

616

759

Santander Consumer USA Inc.

880,808

150

880,958

43,078,897

43,959,855

Stones Funding LLC

109

372

484

Sunrise Capital Management, Inc.

140

247

TMG Financial Services, Inc.

Yamaha Motor Finance Corporation,

U.S.A.

30,909

30,975

1,751,925

1,782,900

Total

1,468,762

15,728

1,707

22,738

1,508,935

56,815,752

58,324,687

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 45

LICENSED LENDERS

Liabilities and Equity

Other Borrowed

Money

All Other Liabilities Total Liabilities

Valuation

Reserves

Capital Stock

Surplus

Total

Liabilities and

Capital

Dollars in Thousands

AmeriCredit Consumer Loan

Company, Inc.

523

100

623

CarFinance Capital LLC U/A/N

CarFinance.com

2,300

25,411

27,711

Grameen America, Inc.

57,233

45,954

103,187

Kashable LLC

33,639

5,202

38,841

LendingClub Corporation

2,077,234

871,312

2,948,546

870,981

3,819,527

Mariner Finance, LLC

796

222,947

223,743

261,827

485,570

New City Funding Corporation

7,038

25,118

32,156

10,181

42,337

Omni

Financial of New York,

Inc.

2,836

134

2,970

OneMain Consumer Loan, Inc.

12,887

40,740

53,627

OneMain Financial Group, LLC

5,362,954

2,643,095

8,006,049

Retail Charge Financial

Services Corp.

759

Santander Consumer USA Inc.

36,535,696

7,424,159

43,959,855

Stones Funding LLC

484

Sunrise Capital Management,

Inc.

247

TMG Financial Services, Inc.

Surrender Date:

February 8, 2019

Yamaha Motor

Finance

Corporation, U.S.A.

101,563

1,106,450

1,208,013

574,887

1,782,900

Total

2,186,631

44,233,895

46,420,526

11,904,161

58,324,687

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 46

GENERAL INSURANCE COMPANY STATISTICS

LICENSES ISSUED DURING YEAR

2017 2016

Total 179,116 196,262

Adjusters

Independent 5,344 15,576

Public 313 422

Temporary Permits 0 13

Agents

Life/Accident and Health 97,660 89,697

Property and Casualty 38,955 46,986

Limited Rental/Wireless Communications 21 121

Mortgage Guaranty Insurance 2 6

Bail Bond 102 206

Limited Lines 3 7

Title 2,088 871

Brokers

Life 10,533 11,236

Property and Casualty 21,814 27,769

Excess Line (Regular and Limited) 1,579 2,750

Life Settlement 165 100

Consultants

Life 124 88

General 161 225

Other

Reinsurance Intermediaries 37 176

Service Contract Registrants 215 13

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 47

A list of general insurance license terms of issuance and renewal requirements can be found on our website.

2017 CHANGES IN AUTHORIZED INSURERS

Life Insurance Companies

Incorporated

Lumico Life Insurance Company of New York Mar. 28

Name Changes

“First United American Life Insurance Company” to “Globe Life Insurance Company of New York” Jan. 1

“First Metlife Investors Insurance Company” to “Brighthouse Life Insurance Company of NY” Mar. 6

“Commercial Travelers Insurance Company” to “Commercial Travelers Life Insurance Company” June 30

Withdrawn

Resource Life Insurance Company Aug. 25

Accident and Health Insurance Companies

Incorporated

Bright Health Insurance Company of New York May 31

Name Changes

“Commercial Travelers Mutual Insurance Company” to “Commercial Travelers Insurance Company”

May 1

“Renaissance Health Insurance Company of New York” to

“Renaissance Life & Health Insurance Company of New York”

Dec. 18

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 48

Property and Casualty Insurance Companies

Domestic Company Licensed

Transit General Insurance Company of New York, Long Island City, NY

Sept. 12

Foreign Companies Licensed

Spinnaker Insurance Company, Chicago, IL

Feb. 21

Vantapro Specialty Insurance Company, Little Rock, AR

May 4

Explorer Insurance Company, San Diego, CA

May 19

OBI America Insurance Company, Harrisburg, PA

Nov. 16

Farmers Mutual Hail

Insurance Company of Iowa, West Des Moines, IA (from Accredited Reinsurer to Property Casualty)

Dec. 6

Name Changes

“Sompo Japan Insurance Company of America” to “Sompo America Insurance Company,” New York, NY

Jan. 1

“Sompo Japan Fire & Marine

Insurance Company of America” to “Sompo America Fire & Marine Insurance Company,”

New York, NY

Jan. 1

“Underwriter for the Professions Insurance Company” to “TDC National Assurance Company,” Lake Oswego, OR

Jan. 4

“United National Specialty Insurance Com

pany” to “City National Insurance Company,” Bedford, TX

Feb. 21

“Mosaic Insurance Company” to “Metromile Insurance Company,” Wilmington, DE

Mar. 22

“Professionals Direct Insurance Company” to “Watford Insurance Company,” Morristown, NJ

Apr. 4

“Quanta Indemnity Company” to “Greyhawk Insurance Company,” Denver, CO

Aug. 8

Redomestications Filed

Commonwealth Insurance Company of America (from Washington to Delaware)

Jan. 9

National Casualty Company (from Wisconsin to Ohio)

Jan. 30

Ashmere Insurance Company (from Illinois to Florida)

Mar. 29

The Insurance Company of the State of Pennsylvania (from Pennsylvania to Illinois)

Mar. 29

Watford Insurance Company (from Michigan to New Jersey)

Apr. 4

Technology Insurance Company (from New

Hampshire to Delaware)

Apr. 20

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 49

Maxum Casualty Insurance Company (from Delaware to Connecticut)

June 8

CorePointe Insurance Company (from Michigan to Delaware)

Nov. 3

Merger Agreements Filed

Middlesex Mutual Assurance Company into COUNTRY

Mutual Insurance Company

Jan. 1

Holyoke Mutual Insurance Company into COUNTRY Mutual Insurance Company

Mar. 29

American Plan Insurance Company into Tri

State Consumer Insurance Company

May 25

Withdrawn

Green Mountain Insurance Company, Inc.

Aug. 7

Liquidated

Excalibur Reinsurance Company

May 25

Fiduciary Insurance Company of America

July 25

Accredited Reinsurers

Certificate of Recognition

Houston Specialty Insurance Company, Houston, TX

Feb. 22

River Thames

Insurance Company Limited, England

Apr. 7

United National Insurance Company, Bala Cynwyd, PA

May 19

Name Change

“Maiden Specialty Insurance Company” to “Clear Blue Specialty Insurance Company”

Sept. 7

Redomestications Filed

Homesite

Insurance Company of the Midwest (from North Dakota to Wisconsin)

Jan. 10

Maxum Indemnity Company (from Delaware to Connecticut)

Mar. 6

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 50

Withdrawn

Unionamerica Insurance Company Limited

June 6

Madison National Life Insurance Company, Inc.

July 1

Clear Blue Specialty Insurance Company

Sept. 7

Charitable Annuity Societies

Permits Issued

Blair Academy, Blairstown, NJ

Jan. 5

Shepherds Baptist Ministries Inc., Union Grove, WI

Jan. 30

The Ohio State University Foundation, Columbus, OH

Mar. 23

National Catholic Community Foundation, Crownsville, MD

Mar. 23

Temple University, Philadelphia, PA

July 31

Rowan University Foundation, Incorporated, Glassboro, NJ

July 31

AMG International, Inc., Chattanooga, TN

Aug. 4

The Pingry

Corporation, Basking Ridge, NJ

Aug. 24

American Diabetes Association, Arlington, VA

Aug. 24

Carroll Petrie Foundation, Wilmington, DE

Aug. 24

Chosen People Ministries, Inc., New York, NY

Oct. 11

Name Change

“Centenary College” to

“Centenary University, a New Jersey Nonprofit Corporation,” Hackettstown, NJ

Feb. 17

Merger Agreement Filed

Nature Conservancy of Connecticut into The Nature Conservancy

Oct. 16

Withdrawn

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 51

REPORTS FILED ON EXAMINATION OF AUTHORIZED INSURERS

Reports on Examinations can be found on our website in the Examination Reports section.

The Ronald Reagan Presidential Foundation

July 7

Daemen College

July 19

Volunteers of America, Inc. Aug. 29

Cortland Memorial Foundation, Inc. Sept. 7

Young Men’s Christian Association Buffalo Niagara Oct. 30

Captive Insurance Companies

Merger Agreements Filed

Columbus Circle Indemnity, Inc. into Spectrum Communications Indemnity, Inc. Aug. 4

Barclays Insurance U.S., Inc. into BIUS, Inc. Sept. 22

Wall and Broad Insurance Company into Intercontinental Exchange Property Protection, Inc. Aug. 18

Title Insurance Companies

Name Change

“New Jersey Title Insurance Company” to “CATIC Title Insurance Company” Sept. 12

Redomestications Filed

Commonwealth Land Title Insurance Company (from Nebraska to Florida) Aug. 31

Fidelity National Title Insurance Company (from California to Florida) Aug. 31

Chicago Title Insurance Company (from Nebraska to Florida) Aug. 31

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 52

LIQUIDATION, CONSERVATION AND REHABILITATION PROCEEDINGS

INSURANCE COMPANY PROCEEDINGS

Domestic Estates in Liquidation 18

Domestic Estates in Rehabilitation 0

Conservation Estates 0

Ancillary Receivership Estates 10

Shell Estates in Liquidation 0

Total 28

DOMESTIC ESTATES AND CONSERVATION ESTATES - ASSETS & LIABILITIES

Total Assets $798,511,315

Total Liabilities $6,111,734,460

Total Insolvency $5,313,223,145

DOMESTIC ESTATES IN REHABILITATION - ASSETS & LIABILITIES

Total Assets $0

Total Liabilities $0

Total Insolvency/(Surplus) $0

LIQUIDATION AND REHABILITATION ACTIVITIES

Domestic Estates

Commenced in

2018

Cuatro, LLC

Touchstone Health HMO, Inc.

Continued Liquidations

American Medical and Life Insurance Company

Atlantic Mutual Insurance Company

Centennial Insurance Company

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 53

Eveready Insurance Company

Executive Life Insurance Company of New York

Fiduciary Insurance Company

First Central Insurance Company

Frontier Insurance Company

Group Council Mutual Insurance Company

Health Republic Insurance of New York, Corp.

Ideal Mutual Insurance

Company

Midland Insurance Company

Professional Liability Insurance Company of America

Realm National Insurance Company

The Insurance Corporation of New York

Union Indemnity Insurance Company of New York

Completed

Drivers Insurance Company

Shell Estates

Commenced

None

Completed

None

Domestic Estates in Rehabilitation

Commenced

None

Continued

None

Converted

None

Completed

None

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 54

Ancillary Receiverships

Commenced

Guarantee Insurance Company

Continued

American

Manufacturers Mutual Insurance Company

American Motorists Insurance Company

CastlePoint Insurance Company

Eagle Insurance Company

Lincoln General Insurance Company

Lumbermens Mutual Casualty Company

Reliance Insurance Company

The Home

Insurance Company

Ullico Casualty Company

Completed

Legion Insurance Company

Conservations

Commenced

None

Continued

None

Completed

None

Fraternal Benefit Societies

Commenced

Amstel Benevolent Society, Inc.

Kudryncer Benevolent Socity,

Inc.

Sieniawer Young Men’s Sick Benevolent Association, Inc.

Trembowler Benevolent Association, Inc.

Continued

Amstel Benevolent Society, Inc.

Berdichever Independent Benevolent Association

Bronx Hungarian Sick & Benevolent Society, Inc.

Bukowiner Bessarabian Benevolent Association

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 55

Fedlo Association, Inc.

First Bereg Munkaczer Sick and Benevolent Society

Kudryncer Benevolent Society, Inc.

Provident Sick and Benevolent Society, Inc.

Sieniawer

Young Men’s Sick Benevolent Association, Inc.

Trembowler Benevolent Association, Inc.

Yamonlinitzer Friends, Inc.

Completed

Chivalry Relief Association, Inc.

Hochberg Family Circle, Inc.

Machnowka Aid Association

Metropole Association, Inc.

Ozorkower Benevolent Society, Inc.

Zolotonosher Friends, Inc.

PROPERTY/CASUALTY INSURANCE ENTITIES SUPERVISED BY THE DEPARTMENT (12/31/2018)

Class Number

Accredited Reinsurers (Property/Casualty) 83

Advance Premium Co-Operative (Property/Casualty) 18

Assessment Co-Operative (Property/Casualty) 22

Associations, Pools, and Syndicates (including FAIR Plan) 9

Captive Insurers 49

Financial Guaranty Insurers 12

Mortgage Guaranty Insurers 22

Stock and Mutual Property/Casualty Insurers (includes Eight United States

Branches, Sixteen Reciprocal Insurers and two State Insurance Funds)

807

Risk Retention Groups 121

Title Insurers (Including Two Accredited Reinsurers) 25

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 56

LICENSED PROPERTY/CASUALTY INSURER SELECTED DATA 2014-2017

2017 2016 2015 2014

Stock Companies

Number of Insurers 742 737 739 746

Dollars in Millions

Net Premiums Written $297,359 $284,822 $279,295

$260,710

Admitted Assets 1,061,267 1,022,692 989,178 970,596

Unearned Premium & Loss Reserves 546,378 520,607 508,540 495,778

Other Liabilities 134,548 129,083 117,383 111,804

Capital 3,960 3,938 3,942 3,972

Surplus to Policyholders 380,341 373,002 363,255 363,015

Mutual Companies

Number of Insurers 65 66 67 67

Dollars in Millions

Net Premiums Written $101,768 $98,895 $93,996 $89,684

Admitted Assets 364,627 $347,098 328,753 320,386

Unearned Premium & Loss Reserves 127,144 $123,827 118,767 113,883

2017 2016 2015 2014

Other Liabilities 42,391 $40,855 37,693 42,039

Surplus to Policyholders 195,092 $182,416 172,293 164,464

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 57

PROPERTY/CASUALTY NET PREMIUMS WRITTEN

Stock Companies

Mutual Companies

No. of

Companies

Net Premiums

Written

Surplus/

Ratio of Premiums to

Surplus

No. of

Companies

Net Premiums

Written

Surplus/

Ratio of Premiums to

Surplus

Policy-

holders

Policy-

holders

Dollars in Millions

742 $297,359 $380,341 0.78 65 $101,768 195,092 0.52

Aggregate Writings (in Billions): $399.13

% in Stock: 74.50%

PROPERTY/CASUALTY INSURER DIRECT PREMIUMS WRITTEN 2013-2017 (New York)

Property/Casualty Lines

Percentage

Change

Dollars in Millions

2013 2014 2015 2016 2017 2013-2017 2016-2017

All Premiums Written $38,005 $39,294 $40,558 $41,993 $42,915 13% 2.20%

Private Passenger Auto 11,112 11,482 11,945 12,634 13,261 19% 4.96%

Bodily Injury and Property Damage Liability

7,399 7,547 7,724 8,099 8,457 14% 4.43%

Comprehensive and Collision 3,713 3,934 4,220 4,535 4,803 29% 5.91%

Commercial Auto 1,962 2,102 2,200 2,370 2,615 33% 10.31%

General (Other) Liability 4,978 5,314 5,710 5,830 5,647 13% -3.14%

Commercial Multi-Peril 3,488 3,614 3,592 3,659 3,863 11% 5.56%

Workers' Compensation 5,191 5,261 5,524 5,894 5,949 15% 0.93%

Homeowners' Multi-Peril 4,902 5,086 5,196 5,224 5,286 8% 1.18%

Medical Malpractice 1,365 1,317 1,168 1,092 938 -31% -14.15%

Inland Marine 1,262 1,370 1,467 1,480 1,617 28% 9.22%

Ocean Marine 444 452 405 394 382 -14% -3.01%

Fidelity and Surety 483 482 512 538 553 15% 2.88%

Accident and Health 421 419 404 427 486 15% 13.76%

Fire 600 638 610 643 565 -6% -12.08%

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 58

Product Liability 152 180 232 221 200 32% -9.63%

Financial Guaranty 375 255 227 209 161 -57% -22.71%

Mortgage Guaranty 184 172 170 168 172 -7% 1.96%

Allied Lines 386 408 457 445 399 3% -10.32%

Aircraft 57 51 59 42 50 -12% 20.36%

Boiler and Machinery 87 91 103 107 101 16% -5.92%

Credit 140 146 149 174 182 30% 4.76%

Burglary and Theft 26 28 30 31 33 29% 6.71%

All Other* 391 426 399 410 456 16% 11.19%

* “All Other" Includes Farm owners Multi-Peril Crop, Multiple peril crop, Private crop, Federal Flood, Private Flood, Earthquake, Warranty and Aggregate

Write-Ins.

FINANCIAL GUARANTY INSURERS SELECTED DATA

2017 2016 2015 2014

Number of Companies 12 13 13 15

Dollars in Millions

Exposure $579,463 $728,148 $955,439 $1,219,632

Net premiums written 413 360 395 478

Admitted assets 25,785 27,591 27,497 30,300

Unearned premium & loss reserves 8,103 8,594 9,230 11,249

Other liabilities 6,081 6,372 6,973 7,218

Capital 1,034 1,037 1,037 1,070

Surplus to policyholders 11,600 12,625 11,743 11,833

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 59

MORTGAGE GUARANTY INSURERS SELECTED ANNUAL STATEMENT DATA

2017 2016 2015 2014

Number of companies 22 24 24 28

Dollars in Millions

Net premiums written $3,697 $3,607 $3,785 $3,649

Admitted Assets 21,198 19,596 19,168 19,001

Unearned premium & loss reserves 6,040 7,046 8,356 10,027

Other liabilities 9,226 6,835 4,723 2,694

Capital 64 67 67 78

Surplus 5,932 5,715 6,089 6,280

MORTGAGE GUARANTY INSURERS NET PREMIUMS WRITTEN AND SURPLUS

Net Premiums Written Surplus to Policyholders Ratio of Premiums

(During Year) (End of Year) to Surplus

Dollars in Millions

$3,697 5,932 0.62

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 60

TITLE INSURANCE COMPANIES SELECTED DATA

2017 2016 2015 2014

Number of Companies 23 23 23 23

Dollars in Millions

Net premiums written $12,297 $11,888 $10,869 $9,317

Admitted assets 8,440 8,600 7,890 7,672

Liabilities 4,553 4,657 4,310 4,198

Capital 377 408 408 410

Surplus 3,887 3,943 3,581 3,474

ADVANCE PREMIUM AND ASSESSMENT CORPORATIONS SELECTED DATA

2017 Total Advance Premium Corporations Assessment Corporations

Number of companies 40 18 22

Dollars in Millions

Total assets $3,492 $2,946 $546

Net premiums written 1,216 1,050 166

Surplus funds 1,881 1,526 355

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 61

HEALTH INSURANCE

HEALTH INSURANCE ASSETS, LIABILITIES AND PREMIUMS WRITTEN

Assets Liabilities Premiums Written in New York

Dollars in Thousands

Continuing Care Retirement Communities (CCRC)

156

245

$ 1,618,155

n/a (see note below)

Article 42 Insurers

34,358,126

20,642,238

$14,473,269

Article 43 Corporations

7,166,645

4,296,510

510

261

HMOs

5,857,482

2,912,612

369

890

Municipal

Cooperative Health Benefit Plans

(MCH)

473,005

186,093

824,731

Self-Funded Student Health Plans

68,943

57,641

43,226

Total $ 49,080,446

$29,713,2482

$49,221,378

Numbers for CCRCs as of 2017. 2018 statements for CCRCs are due April 30th. CCRCs do not have premiums. Residents pay a monthly fee.

MCH statements are due 120 days after the end of their fiscal year.

Self-Funded Student Health Plan statements are due 120 days after the end of their fiscal year.

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 62

CHANGES IN AUTHORIZED INSURERS

Life Insurance Companies Date

Domestic Company Licensed

Lumico Life Insurance Company of New York Dec. 7

Name Changes

“Farm Family Life Insurance Company” to “American National Life Insurance Company of New York” Jan. 1

“Phoenix Life Insurance Company” to “Nassau Life Insurance Company”

Oct. 10

“Hartford Life Insurance Company” to “Talcott Resolution Life Insurance Company” Oct. 18

Mergers

American National Life Insurance Company of New York merged into Farm Family Life Insurance Company Jan. 1

American Modern Life Insurance Company merged into Securian Life Insurance Company Dec. 31

Accredited Reinsurers Date

Name Change

“XL Life Insurance and Annuity Company” to “Omaha Health Insurance Company” Aug. 6

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 63

Fraternal Benefit Societies Date

Merger

“Association of the Sons of Poland” merged into “Supreme Council of the Royal Arcanum” Sept. 28

Charitable Annuity Societies Date

Permits Issued

Dickinson College Jan. 22

Cardinal Glennon Children’s Foundation May 24

National Park Foundation July 16

Bennington College Nov. 16

Wesleyan University Nov. 28

Storm King School Dec. 26

Name Changes

“Rochester General Hospital Foundation” to “Rochester Regional Health Foundation” Jan. 1

“ABWE Foundation, Inc.” to “ABWE Foundation, LLC” Aug. 23

Merger

Unity Health System Foundation merged into Rochester General Hospital Foundation Jan. 1

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 64

Withdrawn

Americares Foundation Sept. 28

Omaha Home for Boys Dec. 27

Health Insurance and Other Health Related Risk Bearing Entities

Newly Authorized

New York Quality Healthcare Corporation (PHSP) April 20

Health Pointe of New York, LLC (HMO) April 26

Longevity Health Plan of New York, Inc. (HMO)

April 26

Mergers

Alphacare of New York, Inc. merged with and into Senior Whole Health of New York, Inc. January 1

Entered into Liquidation

Touchstone Health HMO, Inc. (HMO) May 11

Cuatro LLC (HMO) August 6

Changes in Charter, By

laws, Articles of Incorporation, or Deed of

settlement

Independent Health Benefits Corporation (MHL)

December 12

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 65

Group Health Incorporated (MHL) December 19

Health Insurance Plan of Greater New York

(MHL)

December 19

Newly Authorized

New York Quality Healthcare Corporation (PHSP) April 20

Health Pointe of New York, LLC (HMO) April 26

Longevity Health Plan of New York, Inc. (HMO)

April 26

Mergers

Alphacare of New York, Inc. merged with and into Senior Whole Health of New York, Inc. January 1

Entered into Liquidation

Touchstone Health HMO, Inc. (HMO) May 11

Cuatro LLC (HMO) August 6

Changes in Charter, By

laws, Articles of Incorporation, or Deed of settlement

Independent Health Benefits Corporation (MHL)

December 12

Group Health Incorporated (MHL) December 19

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 66

LIFE INSURANCE

LIFE INSURANCE COMPANIES REGULATED BY THE DEPARTMENT

Type

Number

Life

–

New York

Life

–

Other States

Accredited Reinsurers

Fraternals

–

New York

Fraternals

–

Other States

Fraternals

–

Canadian, U.S. Branch

Charitable Annuities

Retirement Systems

Life Settlement Providers

Welfare Funds

Certified Reinsurers

Total

652

LIFE INSURANCE COMPANY ADMITTED ASSETS

201

2016

2012

2007

Dollars in

Billions

Total

$3,239.3

$3,072.3

$2,768.8

$2,539.9

Percent Increase From 2007

27.5

21.0%

9.0

Type of Asset

Bonds

$1,303.5

$1,259.1

$1,170.5

$1,031.6

Stocks

70.5

64.2

60.0

83.7

Mortgage Loans

259.2

240.9

190.9

187.3

Real Estate

12.0

12.6

11.2

12.8

Policy Loans/Liens

72.8

71.3

70.8

62.5

Short

Term Holdings

6.7

13.5

23.0

16.6

Other

1,514.6

1,410.7

1,242.2

1,145.3

Note: Detail may not add to totals due to rounding.

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 67

LIFE INSURER ASSETS, LIABILITIES, CAPITAL & SURPLUS

2017

2016

Dollars in Billions

Assets

$3,239.3

$3,072.3

Liabilities

3,038.3

2,875.7

Capital & Surplus

201.0

196.6

TOTAL LIFE INSURANCE IN FORCE (COMPANIES LICENSED IN NEW YORK STATE)

2017

2016

2012

2007

Dollars in Billions

Total Insurance In Force

$18,328.9

$17,406.6

$14,929.7

$12,850.4

Percent increase from 2007

42.6

35.5

16.2

Type of Business

Dollars in Billions

Ordinary

$9,246.5

$9,230.8

$8,085.4

$6,950.8

Group

9,054.9

8,147.4

6,811.0

5,848.0

0redit

23.6

24.3

28.2

45.8

Industrial

3.9

4.0

5.1

5.9

LIFE INSURANCE IN FORCE IN THE STATE OF NEW YORK

2017 2016 2012 2007

Dollars in Billions

Total $2,246.6

$2,176.0

$1,923.0

$1,690.7

Percent increase from 2007 32.9%

28.7%

13.7%

Class of Business

Ordinary $1,528.4

$1,476.7

$1,290.6

$1,123.2

Group 713.4

694.3

627.7

560.4

Credit 4.5

4.6

4.2

6.6

Industrial 0.3

0.3

0.4

0.5

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 68

DOMESTIC LIFE INSURANCE COMPANIES ADMITTED ASSETS/INSURANCE IN FORCE

2017 2016 2012 2007

Dollars in Billions

Admitted Assets $1,365.9

$1,310.6

$1,115.1

$946.6

Percent Increase from 2007 44.3%

38.5%

17.8%

Dollars in Billions

Insurance in Force $7,358.1

$7,212.7

$6,770.2

$5,658.0

Percent Increase from 2007 30.0%

27.5%

19.7%

FRATERNAL BENEFIT SOCIETIES ADMITTED ASSETS/INSURANCE IN FORCE

2017 2016 2012 2007

Dollars in Billions

Admitted Assets $124.8

$119.7

$102.9

$78.8

Insurance in Force $427.9

$410.4

$369.9

$317.0

PRIVATE PENSION FUNDS ADMITTED ASSETS/INSURANCE IN FORCE

2017 2016 2012 2007

Dollars in Millions

Fair value of assets $256,320

$231,804

$211,623

$225,977

Payments to Annuitants and Beneficiaries $30,896

$28,896

$22,627

$22,778

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 69

PUBLIC RETIREMENT SYSTEMS AND PENSION FUNDS ADMITTED ASSETS/INSURANCE IN FORCE

2017 2016 2012 2007

Dollars in Millions

Fair Value of Assets $476,394

$438,069

$352,796

$372,490

Payments to Annuitants and Beneficiaries $30,146

$28,881

$24,838

$19,412

SEGREGATED GIFT ANNUITY FUNDS ADMITTED ASSETS/INSURANCE IN FORCE 2007-2017

2017 2016 2012 2007

Dollars in Millions

Total admitted assets $3,077.2

$2,859.1

$2,483.0

$2,167.1

Annual payments to annuitants $222.1

$222.4

$210.6

$177.7

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 70

FUNDS HELD BY OR DEPOSITED WITH T HE SUPERINTE NDENT

UNCLAIMED FUNDS FROM VOLUNTARY OR INVOLUNTARY BANK LIQUIDATIONS

Date Funds Paid to

Superintendent

Name of

Institution

Deposits or

Dividends

Paid to

Claimants in

2017-18

Paid to Date Balance

November 28, 2016

Zurich Depository

Corporation

$412,441.44 $0 $0 $412,441.44

January 13, 2018

Zurich Depository

Corporation

$823.53 $0 $0 $823.53

Total $413,264.97 $0 $0 $413,264.97

Note: All unclaimed Funds on deposit with the Superintendent are held by the Office of the State Comptroller.

STATE TRANSMITTER OF MONEY INSURANCE FUND (STMIF)

Amount

Assets

Cash in STMIF Account as of April 1, 2017

$19,586,339

Cash Received in STMIF from 2017-18 Assessments

Interest Received in STMIF

222,566

Cash Expenses in 2017-18

TOTAL ASSETS

$19,808,905

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 71

PUBLIC MOTOR VEHICLE LIABILITY SECURITY FUND

Beginning Balance as of 4/01/2017 $144,803,114

Assessments Paid into the Fund 15,367,266

Net Interest income 3,206,368

Recoveries 2,570,219

Total Receipts 21,143,853

Subtotal $166,946,967

Disbursements:

Administrative Expenses 35,678

Awards & Expenses of companies in liquidation 6,513,900

Total Disbursements 6,549,578

Total in Fund as of 3/31/2018 $159,397,389

Note: The fund has an outstanding liability of $50 million for funds transferred from the Property Casualty Insurance

Security Fund, as permitted under Section 7603 (e) (2) of the Insurance Law.

PROPERTY CASUALTY INSURANCE SECURITY FUND

Beginning Balance as of 4/01/2017

$286,347,366

Assessments Paid into the Fund

Net Interest income

5,143,177

Recoveries

11,017,689

Total Receipts

16,160,866

Subtotal

$302,508,232

Disbursements:

Administrative Expenses

237,488

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 72

Awards & Expenses of companies in liquidation

29,000,260

Total Disbursements

29,237,748

Total in Fund as of 3/31/2018

$273,270,484

Note: Total does not include transfer of $87 million to State General Purpose Fund,

or transfer of $50 million to the Public Motor Vehicle Liability Security Fund.

WORKERS COMPENSATION SECURITY FUND

Beginning Balance as of 4/01/2017

$128,267,487

Assessments Paid into the Fund

618,166

Net Interest income

2,467,567

Recoveries

74,398,690

Total Receipts

77,484,423

Subtotal

$205,751,910

Disbursements:

Administrative Expenses

60,358

Awards & Expenses of companies in liquidation

77,066,386

Total Disbursements

77,126,744

Total in Fund as of 3/31/2018

$128,625,166

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 73

DE PARTMENT ORGANIZATION AN D MAINTENANCE

2018 DEPARTMENT RECEIPTS

ASSESSMENTS AND REIMBURSEMENT OF DEPARTMENT EXPENSES

Assessments and Reimbursement of Department Expenses: Amount

Banking Industry Assessment $95,990,359

Insurance Industry Assessment 344,941,240

Banking Industry Specific Assessment 0

STMIF Assessment 0

Insurance Industry Examination Fees 13,728,997

Administrative Expense Reimbursement 593,310

Subtotal 455,253,906

Taxes Collected

Retaliatory Taxes - Insurance Law Section 1112 10,029,585

Excess Line Premium Taxes - Insurance Law Section 2118 128,347,716

Organization Tax – Section 180, Tax Law 0

Subtotal 138,377,301

Fees and Other Revenue Collected

Section 9110 - Motor Vehicle Law Enforcement Fee 126,191,310

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 74

Licensing and Accreditation Fees 20,469,118

Section 9108 - Fire Insurance Fee 19,041,893

Fines and Penalties 799,346,510

MLO Annual License Fees 3,048,702

Banking Industry Application Fees 769,000

Section 1212 - Summons and Complaints 643,466

Section 1112 - Filing Annual Statements, Certificates of Authority and Admission

Fees

1,343,839

Fingerprint Fees 54,928

Section 9107 - Certification & Filing Fees 1,220

FOIL Requests 939

Miscellaneous Revenue 3,848

Subtotal 970,914,773

Foreign Fire Tax and Security Funds Receipts

Foreign Fire Tax - Insurance Law Sections 2118, 9104 and 9105 60,053,572

Property Casualty Insurance Security Fund - Article 76 16,160,866

Public Motor Vehicle Liability Security Fund - Article 76 21,143,583

Workers' Compensation Security Fund - Article 6A of WC Law 77,484,423

Subtotal 174,842,423

Total Department Receipts $1,739,388,694

DEPARTMENT OF FINANCIAL SERVICES 2018 ANNUAL REPORT | Page 75

2017-2018 STATE FISCAL YEAR FINANCIAL SERVICES EXPENDITURES

APPROPRIATIONS AVAILABLE $414,368,963

Operating Budget

Banking

100,084,037

Insurance

134,006,931

Subtotal – Operating Budget

234,090,968

Other Programs

Banking Sub-allocations to other Agencies

227,000

Insurance Sub-allocations to other Agencies

106,728,652

Healthy NY, HMO Direct Pay, & Entertainment Workers Programs

26,057,201

Seized Assets

1,454

Settlement Enforcement

439,962

Subtotal – Other Programs

133,454,269

Total Expenditures $367,545,237