Bill Text: NY A05859 | 2011-2012 | General Assembly | Introduced


Bill Title: Relates to the redomestication of insurance companies.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2011-07-11 - enacting clause stricken [A05859 Detail]

Download: New_York-2011-A05859-Introduced.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         5859
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                     March 2, 2011
                                      ___________
       Introduced  by  M. of A. BING -- read once and referred to the Committee
         on Insurance
       AN ACT to amend the insurance law, in relation to the redomestication of
         insurance companies
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Section 7120 of the insurance law, as amended by chapter 48
    2  of the laws of 2009, is amended to read as follows:
    3    S  7120.  Redomestication  of [foreign] insurance companies. (a) Defi-
    4  nitions.  In this section:
    5    (1) "Redomestication" means the transfer to this state of  the  corpo-
    6  rate domicile of an authorized foreign company OR THE TRANSFER FROM THIS
    7  STATE  OF  THE CORPORATE DOMICILE OF A DOMESTIC COMPANY, as provided for
    8  in this section.
    9    (2) "Transferring company"  means  any  authorized  [foreign]  company
   10  seeking redomestication.
   11    (b) A transferring company TRANSFERRING TO THIS STATE shall:
   12    (1)  file  with  the  superintendent  a  certificate  in  such form as
   13  prescribed by the superintendent signed  by  the  insurance  supervisory
   14  official  of  the  state  where  such  transferring company is domiciled
   15  approving the proposed redomestication and confirming that upon redomes-
   16  tication the transferring company shall no longer be subject as a domes-
   17  tic company to the requirements of its current state of domicile;
   18    (2) comply with the applicable requirements of this chapter  regarding
   19  the organization and licensing of a domestic company of the same type;
   20    (3)  demonstrate  to  the satisfaction of the superintendent that upon
   21  redomestication, the transferring company will be in compliance with the
   22  requirements of this chapter and any regulations promulgated  thereunder
   23  applicable to a domestic company of the same type;
   24    (4)  submit  to the superintendent all documents and filings necessary
   25  to comply with paragraphs two and three of this subsection; and
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD08996-01-1
       A. 5859                             2
    1    (5) submit new policy forms to the superintendent for use after  redo-
    2  mestication, if so ordered by the superintendent, or use existing policy
    3  forms with appropriate endorsements if allowed by, and under such condi-
    4  tions as approved by, the superintendent.
    5    (c) A TRANSFERRING COMPANY TRANSFERRING FROM THIS STATE:
    6    (1)  UPON THE APPROVAL OF THE SUPERINTENDENT, TRANSFER ITS DOMICILE TO
    7  ANY OTHER STATE IN WHICH IT IS ADMITTED  TO  TRANSACT  THE  BUSINESS  OF
    8  INSURANCE,  AND  UPON  SUCH  A  TRANSFER IT SHALL CEASE TO BE A DOMESTIC
    9  COMPANY, AND SHALL BE AUTHORIZED IN  THIS  STATE,  IF  QUALIFIED,  AS  A
   10  FOREIGN  INSURER.   THE SUPERINTENDENT SHALL APPROVE THE TRANSFER UNLESS
   11  HE OR SHE DETERMINES THE TRANSFER IS NOT IN THE INTEREST OF THE  POLICY-
   12  HOLDERS OF THIS STATE; AND
   13    (2)  MAY CONTINUE ISSUING POLICY FORMS APPROVED BEFORE REDOMESTICATION
   14  PURSUANT TO SECTION THREE THOUSAND TWO HUNDRED ONE OF THIS CHAPTER  WITH
   15  SUCH  ENDORSEMENT, IF ANY, AS THE SUPERINTENDENT DETERMINES IS NEEDED TO
   16  REFLECT THE REDOMESTICATION.
   17    (D) After the transferring company has complied with the provisions of
   18  this section, the superintendent may, in  accordance  with  section  one
   19  thousand  one  hundred  two  of  this chapter issue a new license to the
   20  transferring company to reflect the change in  its  state  of  corporate
   21  domicile.  The  duration of its license shall be governed by section one
   22  thousand one hundred three of this chapter. Upon issuance  of  such  new
   23  license  the redomestication shall become effective and the transferring
   24  company  shall  be  a  domestic  company  OR  A  FOREIGN   COMPANY,   AS
   25  APPROPRIATE.
   26    [(d)] (E) Simultaneous with the redomestication taking effect:
   27    (1) all materials and documents that were submitted to the superinten-
   28  dent  by  the  transferring company pursuant to the requirements of this
   29  section shall be filed in the office of the  superintendent  SUBJECT  TO
   30  SUBSECTION (H) OF THIS SECTION; and
   31    (2)  FOR A TRANSFERRING COMPANY TRANSFERRING TO THIS STATE, the super-
   32  intendent shall, in accordance with section one thousand two hundred one
   33  or other applicable provisions of this chapter issue to  the  company  a
   34  certified  copy  of its new declaration and charter and a certificate of
   35  incorporation. The new charter  of  the  company  may  provide  for  the
   36  continuation  of the corporate existence of the transferring company and
   37  in such case the original date  of  incorporation  of  the  transferring
   38  company shall be the date of incorporation of the new domestic company.
   39    [(e)]  (F)  All  outstanding  insurance  policies  and contracts shall
   40  remain in full force and effect with no change and need not be  endorsed
   41  as  to  the  new name of the company, if any, or its new location unless
   42  ordered by the superintendent.
   43    [(f)] (G) All agents' appointments  and  licenses,  rates,  and  other
   44  items that the superintendent allows, existing at the time of redomesti-
   45  cation,  shall  continue  in  full  force  and effect in accordance with
   46  applicable provisions of this chapter.
   47    (H) THE SUPERINTENDENT SHALL KEEP THE CONTENTS OF ANY REPORT OR INFOR-
   48  MATION THE SUPERINTENDENT REQUIRES PURSUANT TO THIS SECTION, AND THAT IS
   49  NOT OTHERWISE REQUIRED TO BE SET FORTH IN A PUBLICLY AVAILABLE REPORT OR
   50  FILING, CONFIDENTIAL IN ACCORDANCE WITH THE PROVISIONS OF SUBSECTION (C)
   51  OF SECTION ONE THOUSAND FIVE HUNDRED FOUR OF THIS CHAPTER.
   52    S 2. This act shall take effect immediately.
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