STATE OF NEW YORK
________________________________________________________________________
4823
2009-2010 Regular Sessions
IN ASSEMBLY
February 6, 2009
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Introduced by M. of A. MORELLE -- read once and referred to the Commit-
tee on Insurance
AN ACT to amend the insurance law, in relation to investments and activ-
ities of insurance department employees
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subsection (a) of section 204 of the insurance law is
2 amended and a new subsection (c) is added to read as follows:
3 (a) Neither the superintendent, any deputy, nor any employee of the
4 department, shall be interested, directly or indirectly, in the business
5 of any insurer, agent, broker, adjuster, or other licensee of the
6 department, whether as a security holder, director, officer, attorney,
7 agent, or employee. Nothing in this section shall be construed to
8 prohibit the superintendent, any deputy, or any employee of the depart-
9 ment from owning shares of an investment company (mutual fund) that may
10 incidentally invest in the stock of any licensee, provided that the
11 purpose of the investment portfolio of the investment company may not be
12 to invest primarily or exclusively in the shares of licensees. For
13 purposes of this section, investment companies include open-end and
14 closed-end investment companies and unit investment trusts as those
15 terms are defined in an act of congress entitled "The Investment Company
16 Act of 1940," as amended.
17 (c) The superintendent may determine, upon application of any deputy
18 or employee of the department, that a class of interest or particular
19 interest is, or would be, of so indirect a nature as not to be subject
20 to subsection (a) of this section. In making that determination, or in
21 refusing to make that determination, the superintendent shall consider
22 the nature and value of such interest, the applicant's position within
23 the department, and any other factors that the superintendent deems
24 relevant. Such determination shall specify in writing the reasons there-
25 for.
26 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08499-01-9
