Relates to insurance reserve funds; establishes that such reserve funds shall not exceed twenty percent of prior year actual expenditures for accident and health insurance.
STATE OF NEW YORK
________________________________________________________________________
5138
2021-2022 Regular Sessions
IN ASSEMBLY
February 11, 2021
___________
Introduced by M. of A. BENEDETTO, COLTON, JACKSON -- Multi-Sponsored by
-- M. of A. TAYLOR -- read once and referred to the Committee on
Education
AN ACT to amend the education law, in relation to insurance reserve
funds
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 3653 of the education law, as separately amended by
2 chapters 414 and 416 of the laws of 2016, is amended to read as follows:
3 § 3653. Insurance reserve funds. In addition to the provisions of this
4 article and to the provisions of section six-n of the general municipal
5 law, any school district that establishes and maintains an insurance
6 reserve fund to make expenditures from such reserve fund for any loss,
7 claim, action, or judgment for which the school district is authorized
8 or required to purchase or maintain insurance for the kinds of risks for
9 which insurance is authorized pursuant to paragraph three of subsection
10 (a) of section eleven hundred thirteen of the insurance law, pursuant to
11 section six-n of the general municipal law or any other chapter of law,
12 shall make all reserve fund transactions transparent to the public by
13 adopting a written insurance reserve fund policy, to be posted on the
14 school district's website, that includes: the purpose of the reserve
15 fund, the optimal amount of funding of the reserve fund, its intended
16 duration, the conditions under which reserve fund assets will be used or
17 replenished, a periodic analysis by the school board of the reserve fund
18 balances to determine if reserves are at reasonable and appropriate
19 levels, how the school authorities should reduce reserve funds to
20 reasonable levels when conditions warrant, how school authorities will
21 discontinue the reserve fund if no longer needed and any additional
22 policies that the school authorities deem appropriate. Such reserve
23 fund shall not exceed twenty percent of prior year actual expenditures
24 for health insurance authorized pursuant to paragraph three of
25 subsection (a) of section eleven hundred thirteen of the insurance law.
26 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08455-01-1
