Bill Text: NY S03539 | 2013-2014 | General Assembly | Amended

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Bill Title: Permits certain agreements by domestic mutual insurance corporations.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2014-10-21 - SIGNED CHAP.410 [S03539 Detail]

Download: New_York-2013-S03539-Amended.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        3539--A
           Cal. No. 490
                              2013-2014 Regular Sessions
                                   I N  S E N A T E
                                   February 5, 2013
                                      ___________
       Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
         printed to be committed to the Committee on Insurance  --  recommitted
         to the Committee on Insurance in accordance with Senate Rule 6, sec. 8
         -- reported favorably from said committee, ordered to first and second
         report,  ordered  to  a  third reading, amended and ordered reprinted,
         retaining its place in the order of third reading
       AN ACT to amend the insurance law, in  relation  to  permitting  certain
         agreements by domestic mutual insurance corporations
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Subsection (f) of section 1209  of  the  insurance  law  is
    2  amended to read as follows:
    3    (f) No domestic mutual insurance corporation, except a domestic mutual
    4  insurance company organized before January first, nineteen hundred forty
    5  to  do  only marine protection and indemnity insurance, shall enter into
    6  any agreement with any of the officers or directors, or with any firm or
    7  corporation in which any such officer or director is pecuniarily  inter-
    8  ested  directly  or indirectly, whereby the insurance corporation agrees
    9  to pay, for the acquisition of business, any commission or other compen-
   10  sation which under the agreement  is  increased  or  diminished  by  the
   11  amount  of  such  business or by the insurance corporation's earnings on
   12  such business. NOTWITHSTANDING THE FOREGOING, AND UPON APPLICATION BY  A
   13  DOMESTIC MUTUAL INSURANCE CORPORATION, THE SUPERINTENDENT MAY PERMIT THE
   14  INSURANCE  CORPORATION  TO  ENTER  INTO SUCH AN AGREEMENT WITH A FIRM OR
   15  CORPORATION THAT IS A LICENSED INSURANCE PRODUCER IF THE  SUPERINTENDENT
   16  DETERMINES  THAT: (1) THE INSURANCE CORPORATION'S POLICYHOLDERS WILL NOT
   17  BE ADVERSELY AFFECTED; (2) THE OFFICER  OR  DIRECTOR  HAS  NO  PECUNIARY
   18  INTEREST  DIRECTLY IN THE INSURANCE PRODUCER; AND (3) ANY BENEFIT TO THE
   19  OFFICER OR DIRECTOR THAT ACCRUES AS A RESULT OF THE AGREEMENT WOULD  NOT
   20  BE  MATERIAL  IN RELATION TO THE INSURANCE CORPORATION'S OVERALL PREMIUM
   21  VOLUME.   ANY SUCH AGREEMENT APPROVED BY  THE  SUPERINTENDENT  SHALL  BE
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD08131-03-4
       S. 3539--A                          2
    1  SUBJECT  TO ANNUAL REVIEWS AND, WHERE THE SUPERINTENDENT DETERMINES SUCH
    2  AGREEMENT NO LONGER CONFORMS  TO  THIS  SUBSECTION,  THE  SUPERINTENDENT
    3  SHALL REVOKE HIS OR HER PRIOR APPROVAL.
    4    S 2. This act shall take effect immediately.