Authorizes the superintendent of financial services to authorize the return of subscribing member operating reserve balances to members of a municipal insurance reciprocal.
STATE OF NEW YORK
________________________________________________________________________
10820
IN ASSEMBLY
July 15, 2020
___________
Introduced by COMMITTEE ON RULES -- (at request of M. of A. McDonald) --
read once and referred to the Committee on Insurance
AN ACT to amend the insurance law, in relation to authorizing the super-
intendent of financial services to authorize the return of subscribing
member operating reserve balances to members of a municipal insurance
reciprocal
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph 3 of subsection (a) of section 6109 of the insur-
2 ance law, as amended by chapter 433 of the laws of 2016, is amended to
3 read as follows:
4 (3) Notwithstanding the foregoing, the superintendent may, upon appli-
5 cation from the attorney-in-fact:
6 (A) approve other methods for accumulating such subscriber's operating
7 reserve; or
8 (B) permit the suspension of the accumulation of the operating reserve
9 for a fiscal year provided that those earnings are returned to the
10 subscriber in accordance with subparagraph (B) of paragraph two of
11 subsection (c) of this section; or
12 (C) in the case of a municipal reciprocal insurer, authorize the
13 return of any outstanding subscriber operating reserve balance.
14 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD16889-01-0
