Bill Text: NY S05440 | 2011-2012 | General Assembly | Introduced

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Bill Title: Relates to an exemption for certain stock and non-stock insurance companies.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2012-01-09 - RECOMMIT, ENACTING CLAUSE STRICKEN [S05440 Detail]

Download: New_York-2011-S05440-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         5440
                              2011-2012 Regular Sessions
                                   I N  S E N A T E
                                     May 23, 2011
                                      ___________
       Introduced  by  Sen.  DeFRANCISCO -- 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 exemption for  certain
         stock and non-stock insurance companies
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1.  The insurance law is amended by adding a new section  1326
    2  to read as follows:
    3    S 1326. STATUTORY ASSOCIATION MEMBERSHIP; OBLIGATIONS. FOR THOSE STOCK
    4  AND  NON-STOCK  COMPANIES  TO WHICH SUBPARAGRAPH (B) OF PARAGRAPH TWO OF
    5  SUBSECTION (B) OF SECTION ONE THOUSAND THREE HUNDRED TWENTY-FOUR OF THIS
    6  ARTICLE APPLIES, NO LIABILITIES ARISING FROM THE OBLIGATIONS OF AN ASSO-
    7  CIATION AUTHORIZED PURSUANT TO SUBPARAGRAPH  (D)  OF  PARAGRAPH  TWO  OF
    8  SUBSECTION (C) OF SECTION FIVE THOUSAND FIVE HUNDRED TWO OF THIS CHAPTER
    9  SHALL  BE  DUE AND OWING FROM SUCH COMPANIES UNLESS AND UNTIL SUCH OBLI-
   10  GATIONS CAN ONLY BE SATISFIED, AFTER CONSIDERATION OF ALL  RESOURCES  OF
   11  THE ASSOCIATION, INCLUDING BUT NOT LIMITED TO CURRENT PREMIUM INCOME, BY
   12  A  CONTRIBUTION  FROM  SUCH  COMPANIES AND THE COMPANIES ARE NOTIFIED OF
   13  SAME BY SUCH ASSOCIATION NOT LESS THAN  THREE  HUNDRED  SIXTY-FIVE  DAYS
   14  PRIOR  TO  THE  DATE UPON WHICH SUCH OBLIGATIONS SHALL BE DUE AND OWING,
   15  AND SHALL ONLY RELATE TO OBLIGATIONS OF THE ASSOCIATION THAT ARE ACTUAL-
   16  LY DUE AND OWING BY THE ASSOCIATION IN THAT YEAR IN  WHICH  CONTRIBUTION
   17  IS TO BE MADE BY THE COMPANIES. SUCH OBLIGATIONS SHALL NOT BE AGGREGATED
   18  FOR ANY OTHER YEAR EXCEPT THAT IN WHICH CONTRIBUTION IS DUE AND OWING OR
   19  PREVIOUS  YEARS IN WHICH CONTRIBUTIONS HAVE NOT BEEN SATISFIED; FURTHER,
   20  SUCH LIABILITIES AND THE CONTRIBUTIONS THEREFOR SHALL  NOT  INCLUDE  ANY
   21  CONTINGENT  LIABILITIES  OF  THE  ASSOCIATION  FOR  THE  YEAR  FOR WHICH
   22  CONTRIBUTIONS ARE REQUESTED; PROVIDED,  HOWEVER,  THAT  COMPANIES  SHALL
   23  MAINTAIN  AT  ALL  TIMES A RESERVE OF NOT LESS THAN TEN PERCENT OF THEIR
   24  RESPECTIVE AND PROPORTIONATE LIABILITIES OF THE AGGREGATE DEFICIT OF THE
   25  ASSOCIATION, AS SUCH RESPECTIVE AND  PROPORTIONATE  LIABILITIES  OF  THE
   26  AGGREGATE  DEFICIT  ARE  REPORTED BY THE ASSOCIATION CONSISTENT WITH THE
   27  PROVISIONS OF THIS SECTION.
   28    S 2. This act shall take effect immediately.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD11724-02-1