STATE OF NEW YORK
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7507
2021-2022 Regular Sessions
IN ASSEMBLY
May 12, 2021
___________
Introduced by M. of A. JOYNER -- read once and referred to the Committee
on Labor
AN ACT to amend the workers' compensation law and the insurance law, in
relation to diversifying the New York state insurance fund's invest-
ment authority
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The section heading and subdivisions 1, 2, 3 and 7 of
2 section 87 of the workers' compensation law, the section heading and
3 subdivision 1 as amended and subdivisions 2, 3 and 7 as added by section
4 20 of part GG of chapter 57 of the laws of 2013, are amended to read as
5 follows:
6 [Investment of surplus or reserve] Investments. 1. Any of the reserve
7 funds belonging to the state insurance fund, by order of the commission-
8 ers, approved by the superintendent of financial services, may be
9 invested in the types of [securities] investments described in [subdivi-
10 sions one, two, three, four, five, six, eleven, twelve, twelve-a, thir-
11 teen, fourteen, fifteen, nineteen, twenty, twenty-one, twenty-one-a,
12 twenty-four, twenty-four-a, twenty-four-b, twenty-four-c and twenty-five
13 of section two hundred thirty-five of the banking law or in paragraph]
14 paragraphs one, two, three and four of subsection (b) of section one
15 thousand four hundred two of the insurance law and paragraphs one, two,
16 three, four, five, six, seven, and eleven of subsection (a) of section
17 one thousand four hundred four of the insurance law with the qualitative
18 standards or quantitative limitations which are set forth in such para-
19 graphs except that [up to] a minimum of five percent of such reserve
20 funds [may] shall be invested in the types of securities [of any solvent
21 American institution as] described in [such paragraph irrespective of
22 the rating of such institution's obligations or other similar qualita-
23 tive standards described therein] paragraphs one, two, three and four of
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11419-01-1
A. 7507 2
1 subsection (b) of section one thousand four hundred two of the insurance
2 law.
3 2. Any [of the surplus] funds belonging to the state insurance fund
4 exceeding seventy percent of the aggregate of loss reserves, loss
5 expense reserves and fifty percent of unearned premium reserves, by
6 order of the commissioners, approved by the superintendent of financial
7 services, may be invested in the types of [securities described in
8 subdivisions one, two, three, four, five, six, eleven, twelve, twelve-a,
9 thirteen, fourteen, fifteen, nineteen, twenty, twenty-one, twenty-one-a,
10 twenty-four, twenty-four-a, twenty-four-b, twenty-four-c and twenty-five
11 of section two hundred thirty-five of the banking law or, up to fifty
12 percent of surplus funds, in the types of securities or] investments
13 described in [paragraphs two, three, eight and ten of] paragraphs one,
14 two, three and four of subsection (b) of section one thousand four
15 hundred two of the insurance law and subsection (a) of section one thou-
16 sand four hundred four of the insurance law, [except that up to ten
17 percent of surplus funds may be invested in the securities of any
18 solvent American institution as described in such paragraphs irrespec-
19 tive of the rating of such institution's obligations or other similar
20 qualitative standards described therein,] but such investments shall not
21 be subject to the qualitative standards or quantitative limitations
22 which are set forth with respect to any investment permitted by such
23 subsection and [up to fifteen percent of surplus funds in securities or
24 investments which do not otherwise qualify for investment under this
25 section as shall be made with the care, prudence and diligence under the
26 circumstances then prevailing that a prudent person acting in a like
27 capacity and familiar with such matters would use in the conduct of an
28 enterprise of a like character and with like aims as provided for the
29 state insurance fund under this article, but shall not include any
30 direct derivative instrument or derivative transaction except for hedg-
31 ing purposes] in accordance with section one thousand four hundred ten
32 of the insurance law. [Notwithstanding any other provision in this
33 subdivision, the aggregate amount that the state insurance fund may
34 invest in the types of securities or investments described in paragraphs
35 three, eight and ten of subsection (a) of section one thousand four
36 hundred four of the insurance law and as a prudent person acting in a
37 like capacity would invest as provided in this subdivision shall not
38 exceed fifty percent of such surplus funds.]
39 3. Any [of the surplus or reserve] funds belonging to the state insur-
40 ance fund, upon like approval of the superintendent of financial
41 services, may be loaned on the pledge of any such securities. The
42 commissioners, upon like approval of the superintendent of financial
43 services, may also sell any of such securities or investments.
44 7. Notwithstanding any provision in this section, the [surplus and
45 reserve] funds of the state insurance fund shall not be invested in any
46 investment that has been found by the superintendent of financial
47 services to be against public policy or in any investment prohibited by
48 the provisions of [paragraph six of subsection (a) of section one thou-
49 sand four hundred four of the insurance law or by the provisions of]
50 paragraph one, two, three, four, six, seven, eight, nine or ten of
51 subsection (a) of section one thousand four hundred seven of the insur-
52 ance law or in excess of any limitation provided under section one thou-
53 sand four hundred nine of the insurance law.
54 § 2. Subsection (c) of section 1108 of the insurance law, as amended
55 by section 38 of part SS of chapter 54 of the laws of 2016, is amended
56 to read as follows:
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1 (c) The state insurance fund of this state, except as to the
2 provisions of section one thousand four hundred ten, subsection (d) of
3 section two thousand three hundred thirty-nine, section three thousand
4 one hundred ten, subsection (a), paragraph one of subsection (b), para-
5 graph three of subsection (c) and subsection (d) of section three thou-
6 sand two hundred one, sections three thousand two hundred two, three
7 thousand two hundred four, subsections (a) through (d) of section three
8 thousand two hundred twenty-one, subsections (b) and (c) of section four
9 thousand two hundred twenty-four, section four thousand two hundred
10 twenty-six and subsections (a) and (b), (g) through (j), and (n) of
11 section four thousand two hundred thirty-five of this chapter and except
12 as otherwise specifically provided by the laws of this state.
13 § 3. Subsection (a) of section 1410 of the insurance law, as added by
14 chapter 650 of the laws of 1998, is amended to read as follows:
15 (a) For purposes of this section, except subsection (k) of this
16 section, an insurer shall mean a domestic life insurer, a domestic
17 property/casualty insurer, a domestic reciprocal insurer, a domestic
18 mortgage guaranty insurer, a domestic co-operative property/casualty
19 insurance corporation [or], a domestic financial guaranty insurer, or
20 the state insurance fund of this state.
21 § 4. This act shall take effect immediately.
