Relates to the accumulation of surplus of domestic mutual and domestic stock life insurance companies; amends the formula used for the calculation of such surplus.
STATE OF NEW YORK
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5212
2019-2020 Regular Sessions
IN SENATE
April 16, 2019
___________
Introduced by Sen. BRESLIN -- 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 limitation on the
accumulation of surplus of life insurance companies
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraphs 1 and 2 of subsection (a) section 4219 of the
2 insurance law, as amended by chapter 340 of the laws of 2005, are
3 amended and a new subsection (d) is added to read as follows:
4 (1) Any domestic mutual life insurance company may maintain a surplus,
5 above all of its reserves and liabilities required or specifically
6 permitted by this chapter, not exceeding the greatest of (A) eight
7 hundred fifty thousand dollars, or (B) [ten] twenty percent of its poli-
8 cy reserves and policy liabilities, or (C) [ten] twenty percent of its
9 policy reserves and policy liabilities plus (i) the product of three and
10 its authorized control level RBC as determined in accordance with
11 section one thousand three hundred twenty-two of this chapter minus (ii)
12 the asset valuation reserve as reported in its annual statement, or (D)
13 the minimum amount of capital and surplus required by law of another
14 state in which the company is authorized to do business.
15 (2) Any domestic stock life insurance company issuing participating
16 policies only or both participating and non-participating policies or
17 contracts in accordance with subsection (f) of section four thousand two
18 hundred thirty-one of this article, may maintain a participating policy-
19 holders' surplus, above all of its reserves and liabilities arising out
20 of participating policies, required or specifically permitted by the
21 provisions of this chapter, not exceeding the greatest of (A) two
22 hundred fifty thousand dollars, or (B) [ten] twenty percent of such
23 policy reserves and such policy liabilities, or (C) [ten] twenty percent
24 of such policy reserves and policy liabilities plus the amount derived
25 by prorating, based upon the ratio of participating assets to admitted
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11221-01-9
S. 5212 2
1 assets, (i) the product of three and its authorized control level RBC as
2 determined in accordance with section one thousand three hundred twen-
3 ty-two of this chapter minus (ii) the asset valuation reserve as
4 reported in its annual statement.
5 (d) Notwithstanding any other provision of this chapter, the amount of
6 any funds advanced or borrowed by any domestic insurer pursuant to
7 section one thousand three hundred seven of this chapter shall be
8 excluded from the calculation of the maximum surplus prescribed by
9 subsection (a) of this section.
10 § 2. Section 1307 of the insurance law is amended by adding a new
11 subsection (e) to read as follows:
12 (e) Any sum so advanced or borrowed shall be excluded from the calcu-
13 lation of the maximum surplus prescribed by subsection (a) of section
14 four thousand two hundred nineteen of this chapter.
15 § 3. This act shall take effect immediately.
