S05311 Summary:
| BILL NO | S05311 |
| SAME AS | SAME AS A04254 |
| SPONSOR | BAILEY |
| COSPNSR | |
| MLTSPNSR | |
| Amd §6502, Ins L | |
| Relates to mortgage guaranty insurance; allows for withdrawals from the contingency reserve if the superintendent determines that such withdrawals will not be harmful to policy holders. | |
S05311 Text:
Go to topSTATE OF NEW YORK ________________________________________________________________________ 5311 2025-2026 Regular Sessions IN SENATE February 20, 2025 ___________ Introduced by Sen. BAILEY -- 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 mortgage guaranty insurance The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph 2 of subsection (a) of section 6502 of the insur- 2 ance law is amended to read as follows: 3 (2) it establishes a contingency reserve out of net premiums (gross 4 premiums less premiums returned to policyholders) remaining after estab- 5 lishing the unearned premium reserve. The company shall contribute to 6 the contingency reserve an amount equal to fifty percent of such remain- 7 ing earned premiums. Contributions to the contingency reserve made 8 during each calendar year shall be maintained for a period of one 9 hundred and twenty months, except that withdrawals may be made by the 10 company with the prior approval of the superintendent in any year in 11 which the actual incurred losses exceed thirty-five percent of the 12 corresponding earned premiums or as otherwise may be permitted by the 13 superintendent if after due consideration the superintendent determines 14 the withdrawal shall not be harmful to policyholders. The unearned 15 premium reserve shall be computed as required by section one thousand 16 three hundred five of this chapter except that on policies covering a 17 risk period of more than one year it shall be computed in accordance 18 with standards promulgated by the superintendent; and 19 § 2. This act shall take effect immediately. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD01541-01-5