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S00697 Summary:

BILL NOS00697
 
SAME ASNo Same As
 
SPONSORSEWARD
 
COSPNSR
 
MLTSPNSR
 
Amd 7120, Ins L
 
Relates to the redomestication of insurance companies.
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S00697 Actions:

BILL NOS00697
 
01/04/2017REFERRED TO INSURANCE
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S00697 Memo:

Memo not available
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S00697 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           697
 
                               2017-2018 Regular Sessions
 
                    IN SENATE
 
                                     January 4, 2017
                                       ___________
 
        Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
          printed to be committed to the Committee on Insurance
 
        AN ACT to amend the insurance law, in relation to the redomestication of
          insurance companies
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section 1. Section 7120 of the insurance law, as amended by chapter 48
     2  of the laws of 2009, is amended to read as follows:
     3    §  7120.  Redomestication  of [foreign] insurance companies. (a) Defi-
     4  nitions.  In this section:
     5    (1) "Redomestication" means the transfer to this state of  the  corpo-
     6  rate domicile of an authorized foreign company or the transfer from this
     7  state  of  the corporate domicile of a domestic company, as provided for
     8  in this section.
     9    (2) "Transferring company"  means  any  authorized  [foreign]  company
    10  seeking redomestication.
    11    (b) A transferring company transferring to this state shall:
    12    (1)  file  with  the  superintendent  a  certificate  in  such form as
    13  prescribed by the superintendent signed  by  the  insurance  supervisory
    14  official  of  the  state  where  such  transferring company is domiciled
    15  approving the proposed redomestication and confirming that upon redomes-
    16  tication the transferring company shall no longer be subject as a domes-
    17  tic company to the requirements of its current state of domicile;
    18    (2) comply with the applicable requirements of this chapter  regarding
    19  the organization and licensing of a domestic company of the same type;
    20    (3)  demonstrate  to  the satisfaction of the superintendent that upon
    21  redomestication, the transferring company will be in compliance with the
    22  requirements of this chapter and any regulations promulgated  thereunder
    23  applicable to a domestic company of the same type;
    24    (4)  submit  to the superintendent all documents and filings necessary
    25  to comply with paragraphs two and three of this subsection; and

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04770-01-7

        S. 697                              2
 
     1    (5) submit new policy forms to the superintendent for use after  redo-
     2  mestication, if so ordered by the superintendent, or use existing policy
     3  forms with appropriate endorsements if allowed by, and under such condi-
     4  tions as approved by, the superintendent.
     5    (c) A transferring company transferring from this state:
     6    (1)  upon the approval of the superintendent, transfer its domicile to
     7  any other state in which it is admitted  to  transact  the  business  of
     8  insurance,  and  upon  such  a  transfer it shall cease to be a domestic
     9  company, and shall be authorized in  this  state,  if  qualified,  as  a
    10  foreign  insurer.   The superintendent shall approve the transfer unless
    11  he or she determines the transfer is not in the interest of the  policy-
    12  holders of this state; and
    13    (2)  may continue issuing policy forms approved before redomestication
    14  pursuant to section three thousand two hundred one of this chapter  with
    15  such  endorsement, if any, as the superintendent determines is needed to
    16  reflect the redomestication.
    17    (d) After the transferring company has complied with the provisions of
    18  this section, the superintendent may, in  accordance  with  section  one
    19  thousand  one  hundred  two  of  this chapter issue a new license to the
    20  transferring company to reflect the change in  its  state  of  corporate
    21  domicile.  The  duration of its license shall be governed by section one
    22  thousand one hundred three of this chapter. Upon issuance  of  such  new
    23  license  the redomestication shall become effective and the transferring
    24  company  shall  be  a  domestic  company  or  a  foreign   company,   as
    25  appropriate.
    26    [(d)] (e) Simultaneous with the redomestication taking effect:
    27    (1) all materials and documents that were submitted to the superinten-
    28  dent  by  the  transferring company pursuant to the requirements of this
    29  section shall be filed in the office of the  superintendent  subject  to
    30  subsection (h) of this section; and
    31    (2)  for a transferring company transferring to this state, the super-
    32  intendent shall, in accordance with section one thousand two hundred one
    33  or other applicable provisions of this chapter issue to  the  company  a
    34  certified  copy  of its new declaration and charter and a certificate of
    35  incorporation. The new charter  of  the  company  may  provide  for  the
    36  continuation  of the corporate existence of the transferring company and
    37  in such case the original date  of  incorporation  of  the  transferring
    38  company shall be the date of incorporation of the new domestic company.
    39    [(e)]  (f)  All  outstanding  insurance  policies  and contracts shall
    40  remain in full force and effect with no change and need not be  endorsed
    41  as  to  the  new name of the company, if any, or its new location unless
    42  ordered by the superintendent.
    43    [(f)] (g) All agents' appointments  and  licenses,  rates,  and  other
    44  items that the superintendent allows, existing at the time of redomesti-
    45  cation,  shall  continue  in  full  force  and effect in accordance with
    46  applicable provisions of this chapter.
    47    (h) The superintendent shall keep the contents of any report or infor-
    48  mation the superintendent requires pursuant to this section, and that is
    49  not otherwise required to be set forth in a publicly available report or
    50  filing, confidential in accordance with the provisions of subsection (c)
    51  of section one thousand five hundred four of this chapter.
    52    § 2. This act shall take effect immediately.
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