FLI provided the SSC with an irrevocable guarantee for SSC payment obligations arising from all qualified orders in which SSC participates. The guarantee applies to qualified contracts for which a compensation pension structured by NYLI is acquired. The guaranteed payment obligation is that of SSC and not NYLI; NYLI does not participate in the warranty. NYLI notes that the guarantee was issued by FLI to SSC in State X. In practical terms, a guarantee can only exist for a valid agreement. The surety can therefore take advantage of all the principal debtor`s exceptions. It also means that if a guarantee is used, the surety cannot object to a disagreement and can only make the payment in the event of a final judicial decision in favour of the beneficiary or if the client is no longer able to fulfil his obligations. FLI establishes the guarantee exclusively in its legitimate capacity as the mother of SSCs and not as an insurer (a fact that is specified by the addition of the disclaimer, that the guarantee is not an insurance contract). Nor does FLI have the ambition to advertise as an insurer, to assert itself or to engage in any other activity in that state. In these circumstances, therefore, neither party draws attention to an unauthorized insurer within the meaning of Section 2102, point b), second paragraph. In the circumstances described in this notice, such a guarantee by the unauthorized insurer would not constitute the activity of an insurance transaction in New York. Our editors will check what you have submitted and decide if they want to revise the article. (a) 1) “insurance contract”: any agreement or other transaction by which a party, the “insurer,” is required to give financial value to another party, the insured or the “beneficiary,” based on an accidental event in which the insured or beneficiary has or will have a substantial interest at the time of such an event, which is affected by the performance of that event.
Guarantees and guarantees can be provided upon initial request. However, given the nature of the commitment, this “first claim” is increasingly being used in a guarantee agreement.