Bill Text: NY A09607 | 2011-2012 | General Assembly | Introduced

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Bill Title: Relates to increasing the aggregate cap on liabilities for life insurers under the life insurance guaranty corporation for the purposes of determining assessments on insurers.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2012-05-21 - substituted by s6507a [A09607 Detail]

Download: New_York-2011-A09607-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         9607
                                 I N  A S S E M B L Y
                                    March 20, 2012
                                      ___________
       Introduced  by M. of A. MORELLE -- read once and referred to the Commit-
         tee on Insurance
       AN ACT to amend the insurance law and the tax law, in  relation  to  the
         life insurance company guaranty corporation of New York
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Paragraph 1 of subsection (e) of section 7709 of the insur-
    2  ance law, as added by chapter 802 of the laws of  1985,  is  amended  to
    3  read as follows:
    4    (1)  The  total assessment against all member insurers for all impair-
    5  ments and insolvencies, less the amount of refunds (not including inter-
    6  est) to member insurers pursuant to  subsection  (f)  of  this  section,
    7  shall  not exceed five hundred million dollars, EXCEPT THAT WITH RESPECT
    8  TO A MEMBER INSURER THAT IS A DOMESTIC INSURER  AND  IS  SUBJECT  TO  AN
    9  ORDER OF REHABILITATION UNDER ARTICLE SEVENTY-FOUR OF THIS CHAPTER AS OF
   10  MARCH  FIRST  TWO  THOUSAND  TWELVE, SUCH ASSESSMENT LIMIT SHALL BE FIVE
   11  HUNDRED FIFTY-EIGHT MILLION DOLLARS; PROVIDED, HOWEVER, THAT  SUCH  FIVE
   12  HUNDRED  FIFTY-EIGHT  MILLION DOLLAR LIMIT SHALL BE SUBJECT TO REDUCTION
   13  IN AN AMOUNT, IF ANY, DETERMINED BY THE SUPERINTENDENT, ON  A  DATE  NOT
   14  EARLIER  THAN  TWELVE  MONTHS AFTER THE ENTRY OF AN ORDER OF LIQUIDATION
   15  WITH RESPECT TO SUCH DOMESTIC INSURER, TO BE NOT NEEDED FOR  THE  CORPO-
   16  RATION  TO  BE  ABLE  TO  PAY ITS OBLIGATIONS AND REASONABLE EXPENSES IN
   17  CONNECTION WITH THE LIQUIDATION OF SUCH  DOMESTIC  INSURER,  BUT  IN  NO
   18  EVENT SHALL SUCH REDUCTION EXCEED FIFTY-EIGHT MILLION DOLLARS.
   19    S 2. Paragraph 1 of subdivision (f) of section 1511 of the tax law, as
   20  amended  by  chapter  803  of  the  laws  of 1985, is amended to read as
   21  follows:
   22    (1) The maximum authorized credit for each taxpayer  shall  be  deter-
   23  mined  as  provided  in [subsection (a) of] section seven thousand seven
   24  hundred twelve of the insurance law.
   25    S 3. This act shall take effect immediately.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD14723-04-2