Bill Text: NY A06781 | 2019-2020 | General Assembly | Introduced
Bill Title: Enacts the small insurer protection act prohibiting the filing of an application for an order of rehabilitation or liquidation of a small insurer on certain grounds unless such order is based on: (i) the superintendent's adoption of a report on examination finding the company insolvent; or (ii) the annual or quarterly financial statements of the company, which show that the company's admitted assets do not exceed its liabilities and surplus to policyholders if the company does not maintain reserves in an amount determined reasonable by its independent loss reserve specialist or its appointed actuary.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2020-01-08 - referred to insurance [A06781 Detail]
Download: New_York-2019-A06781-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 6781 2019-2020 Regular Sessions IN ASSEMBLY March 20, 2019 ___________ Introduced by M. of A. PERRY -- read once and referred to the Committee on Insurance AN ACT to amend the insurance law, in relation to enacting the small insurer protection act The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act shall be known and may be cited as "the small 2 insurer protection act". 3 § 2. Legislative intent. The legislature intends to protect small 4 insurance companies that write commercial automobile insurance within 5 New York state, to encourage new entrants into the insurance market and 6 novel insurance products, and to foster competition in the marketplace, 7 which will benefit policyholders and the public. 8 § 3. The insurance law is amended by adding a new section 7402-a to 9 read as follows: 10 § 7402-a. Small insurer rehabilitation or liquidation. 1. Notwith- 11 standing any other provision of this chapter to the contrary, no appli- 12 cation for an order of rehabilitation or liquidation of a small insurer 13 as defined in this section shall be made on the grounds specified in 14 subsection (a) or (c) of section seven thousand four hundred two of this 15 article, unless such order is based on: (a) the superintendent's 16 adoption of a report on examination, conducted in accordance with arti- 17 cle three of this chapter, finding the company insolvent as defined in 18 section one thousand three hundred nine of this chapter; or (b) the 19 annual or quarterly financial statements of the company: (i) if the 20 financial statements reflect that the company's admitted assets do not 21 exceed its liabilities and surplus to policyholders; and (ii) the 22 company does not maintain reserves in an amount determined reasonable 23 by its independent loss reserve specialist or, if no independent loss 24 reserve specialist is required, by its appointed actuary. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD10756-03-9A. 6781 2 1 2. Nothing in this section shall restrict the superintendent's right 2 to direct an examination pursuant to section three hundred nine of this 3 chapter, or otherwise interfere with the superintendent's regulatory 4 authority as provided in this chapter, nor shall this provision be 5 construed to restrict an insurer's rights and remedies in any judicial 6 or administrative proceeding. 7 3. As used in this section: 8 (a) "small insurer" means a domestic property/casualty insurance 9 company whose annual net direct written premiums written do not exceed 10 twenty-five million dollars, at least seventy-five percent of which is 11 from commercial automobile liability business; and 12 (b) "direct written premiums" means the gross direct written premiums 13 less return premiums on such direct business. 14 § 4. This act shall take effect on the thirtieth day after it shall 15 have become a law. Effective immediately the addition, amendment and/or 16 repeal of any rule or regulation necessary for the implementation of 17 this act on its effective date are authorized to be made and completed 18 on or before such date.
