Bill Text: NY A09337 | 2015-2016 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Authorizes the superintendent of financial services to suspend crediting of underwriting earnings for a fiscal year for the purpose of accumulating a subscriber's operating reserve.

Spectrum: Slight Partisan Bill (Republican 5-3)

Status: (Engrossed - Dead) 2016-06-14 - substituted by s6789a [A09337 Detail]

Download: New_York-2015-A09337-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
            S. 6789                                                  A. 9337
                SENATE - ASSEMBLY
                                    February 23, 2016
                                       ___________
        IN SENATE -- Introduced by Sen. BRESLIN -- read twice and ordered print-
          ed, and when printed to be committed to the Committee on Insurance
        IN ASSEMBLY -- Introduced by 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 suspend crediting of underwriting
          earnings for a fiscal year for the purpose of accumulating a subscrib-
          er's operating reserve
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Section  6109  of  the  insurance  law, subsection (a) as
     2  amended by chapter 138 of the laws  of  1987,  is  amended  to  read  as
     3  follows:
     4    § 6109. Subscriber's operating reserve. (a) (1) Every subscriber of an
     5  authorized  reciprocal  insurer  in  which  subscribers  are  subject to
     6  contingent liability shall accumulate a minimum operating reserve, to be
     7  credited to such subscriber on the books and records of such  reciprocal
     8  insurer,  by  authorizing the attorney-in-fact to credit to such account
     9  at the end of the fiscal year of such reciprocal insurer, an amount  not
    10  less  than one quarter of such subscriber's underwriting earnings during
    11  such period.
    12    (2) Such accumulation shall be made so long as such subscriber's oper-
    13  ating reserve is less than twice the amount of annual premiums in force.
    14    (3) Notwithstanding the foregoing, the superintendent may, upon appli-
    15  cation from the attorney-in-fact[,]:
    16    (A) approve other methods for accumulating such subscriber's operating
    17  reserve; or
    18    (B) permit the suspension of the accumulation of the operating reserve
    19  for a fiscal year provided that  those  earnings  are  returned  to  the
    20  subscriber  in  accordance  with  subparagraph  (B)  of paragraph two of
    21  subsection (c) of this section.
    22    (b) Any authorized reciprocal insurer may, pursuant to  the  terms  of
    23  the  subscriber's  agreement and to any action of its advisory committee
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14124-01-6