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S01495 Summary:

BILL NOS01495
 
SAME ASNo Same As
 
SPONSORCOMRIE
 
COSPNSRLANZA, MYRIE, PALUMBO, PARKER, STAVISKY
 
MLTSPNSR
 
Add §7402-a, Ins L
 
Enacts the small insurer protection act prohibiting the filing of an application for an order of rehabilitation or liquidation of a small insurer on certain grounds unless such order is based on: the superintendent's adoption of a report on examination finding the company insolvent; or the annual or quarterly financial statements of the company, which show that the company's admitted assets do not exceed its liabilities and surplus to policyholders if the company does not maintain reserves in an amount determined reasonable by its independent loss reserve specialist or its appointed actuary.
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S01495 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          1495
 
                               2023-2024 Regular Sessions
 
                    IN SENATE
 
                                    January 12, 2023
                                       ___________
 
        Introduced  by  Sens. COMRIE, LANZA, MYRIE, PALUMBO, PARKER, STAVISKY --
          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 enacting the small
          insurer protection act
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Short  title. This act shall be known and may be cited as
     2  "the small insurer protection act".
     3    § 2. Legislative intent. The  legislature  intends  to  protect  small
     4  insurance  companies  that  write commercial automobile insurance within
     5  New York state, to encourage new entrants into the insurance market  and
     6  novel  insurance products, and to foster competition in the marketplace,
     7  which will benefit policyholders and the public.
     8    § 3. The insurance law is amended by adding a new  section  7402-a  to
     9  read as follows:
    10    §  7402-a.  Small  insurer  rehabilitation or liquidation. 1. Notwith-
    11  standing any other provision of this chapter to the contrary, no  appli-
    12  cation  for an order of rehabilitation or liquidation of a small insurer
    13  as defined in this section shall be made on  the  grounds  specified  in
    14  subsection (a) or (c) of section seven thousand four hundred two of this
    15  article,  unless  such  order  is  based  on:   (a) the superintendent's
    16  adoption of a report on examination, conducted in accordance with  arti-
    17  cle three of this chapter, finding the company insolvent as  defined  in
    18  section  one  thousand    three hundred nine of this chapter; or (b) the
    19  annual or quarterly financial statements of  the  company:  (i)  if  the
    20  financial  statements  reflect that the company's admitted assets do not
    21  exceed its liabilities and   surplus  to  policyholders;  and  (ii)  the
    22  company  does  not maintain reserves in an amount determined  reasonable
    23  by its independent loss reserve specialist or, if  no  independent  loss
    24  reserve specialist is required, by its appointed actuary.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03538-01-3

        S. 1495                             2
 
     1    2.  Nothing  in this section shall restrict the superintendent's right
     2  to direct an  examination pursuant to section three hundred nine of this
     3  chapter, or otherwise interfere  with  the  superintendent's  regulatory
     4  authority  as  provided  in  this  chapter,  nor shall this provision be
     5  construed  to  restrict an insurer's rights and remedies in any judicial
     6  or administrative proceeding.
     7    3. As used in this section:
     8    (a) "small  insurer"  means  a  domestic  property/casualty  insurance
     9  company  whose  annual net direct written premiums written do not exceed
    10  twenty-five million dollars, at least seventy-five percent of  which  is
    11  from commercial automobile liability business; and
    12    (b)  "direct written premiums" means the gross direct written premiums
    13  less return  premiums on such direct business.
    14    § 4. This act shall take effect on the thirtieth day  after  it  shall
    15  have  become a law. Effective immediately the addition, amendment and/or
    16  repeal of any rule or regulation necessary  for  the  implementation  of
    17  this  act  on its effective date are authorized to be made and completed
    18  on or before such date.
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