(b) Except where subdivision (a) of this section is applicable, a loss portfolio transfer entered into between a domestic insurer and an insurer that is an affiliate or is an insurer in the same holding company system, within the meaning of section 107 or 1501 of the Insurance Law, shall be subject to the following:

1. (1) A domestic controlled insurer, within the meaning of section 1501 of the Insurance Law, shall not enter into a loss portfolio transfer except in accordance with the provisions of section 1505 of the Insurance Law. In applying the provisions of section 1505 of the Insurance Law, a loss portfolio transfer shall be considered a reinsurance agreement.

2. (2) A domestic insurer, other than an insurer subject to paragraph (1) of this subdivision, that enters into a loss portfolio transfer shall:

   1. (i) include language in the agreement providing that, should the superintendent find the agreement not fair and equitable, the insurer shall cancel the agreement, ab initio, within 30 days of the superintendent's written notice;
   2. (ii) submit the agreement to the superintendent within 15 days after entering into it; and
   3. (iii) where the superintendent finds that the agreement is not fair and equitable, cancel the agreement, ab initio, within 30 days of written notice from the superintendent. The superintendent shall make such a determination within 30 days of the receipt of the submitted agreement, except that this 30-day period may be extended in the event additional information is necessary to make a determination. The superintendent shall provide written notice of the extension to the insurer.