Bill Text: NY S05212 | 2019-2020 | General Assembly | Introduced


Bill Title: Relates to the accumulation of surplus of domestic mutual and domestic stock life insurance companies; amends the formula used for the calculation of such surplus.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-04-16 - REFERRED TO INSURANCE [S05212 Detail]

Download: New_York-2019-S05212-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          5212
                               2019-2020 Regular Sessions
                    IN SENATE
                                     April 16, 2019
                                       ___________
        Introduced  by  Sen. BRESLIN -- 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 the limitation on  the
          accumulation of surplus of life insurance companies
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Paragraphs 1 and 2 of subsection (a) section  4219  of  the
     2  insurance  law,  as  amended  by  chapter  340  of the laws of 2005, are
     3  amended and a new subsection (d) is added to read as follows:
     4    (1) Any domestic mutual life insurance company may maintain a surplus,
     5  above all of its  reserves  and  liabilities  required  or  specifically
     6  permitted  by  this  chapter,  not  exceeding  the greatest of (A) eight
     7  hundred fifty thousand dollars, or (B) [ten] twenty percent of its poli-
     8  cy reserves and policy liabilities, or (C) [ten] twenty percent  of  its
     9  policy reserves and policy liabilities plus (i) the product of three and
    10  its  authorized  control  level  RBC  as  determined  in accordance with
    11  section one thousand three hundred twenty-two of this chapter minus (ii)
    12  the asset valuation reserve as reported in its annual statement, or  (D)
    13  the  minimum  amount  of  capital and surplus required by law of another
    14  state in which the company is authorized to do business.
    15    (2) Any domestic stock life insurance  company  issuing  participating
    16  policies  only  or  both participating and non-participating policies or
    17  contracts in accordance with subsection (f) of section four thousand two
    18  hundred thirty-one of this article, may maintain a participating policy-
    19  holders' surplus, above all of its reserves and liabilities arising  out
    20  of  participating  policies,  required  or specifically permitted by the
    21  provisions of this chapter,  not  exceeding  the  greatest  of  (A)  two
    22  hundred  fifty  thousand  dollars,  or  (B) [ten] twenty percent of such
    23  policy reserves and such policy liabilities, or (C) [ten] twenty percent
    24  of such policy reserves and policy liabilities plus the  amount  derived
    25  by  prorating,  based upon the ratio of participating assets to admitted
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11221-01-9

        S. 5212                             2
     1  assets, (i) the product of three and its authorized control level RBC as
     2  determined in accordance with section one thousand three  hundred  twen-
     3  ty-two  of  this  chapter  minus  (ii)  the  asset  valuation reserve as
     4  reported in its annual statement.
     5    (d) Notwithstanding any other provision of this chapter, the amount of
     6  any  funds  advanced  or  borrowed  by  any domestic insurer pursuant to
     7  section one thousand three  hundred  seven  of  this  chapter  shall  be
     8  excluded  from  the  calculation  of  the  maximum surplus prescribed by
     9  subsection (a) of this section.
    10    § 2. Section 1307 of the insurance law is  amended  by  adding  a  new
    11  subsection (e) to read as follows:
    12    (e)  Any sum so advanced or borrowed shall be excluded from the calcu-
    13  lation of the maximum surplus prescribed by subsection  (a)  of  section
    14  four thousand two hundred nineteen of this chapter.
    15    § 3. This act shall take effect immediately.
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