Bill Text: NY A08903 | 2011-2012 | General Assembly | Introduced

---

Bill Title: Makes technical corrections relating to the treatment of qualified financial contracts in an insurance insolvency proceeding affecting a domestic, foreign or alien insurer.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2012-01-27 - signed chap.4 [A08903 Detail]

Download: New_York-2011-A08903-Introduced.html

---

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         8903
                                 I N  A S S E M B L Y
                                      (PREFILED)
                                    January 4, 2012
                                      ___________
       Introduced  by M. of A. MORELLE -- read once and referred to the Commit-
         tee on Insurance
       AN ACT to amend the insurance  law,  in  relation  to  making  technical
         corrections thereto
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Paragraph 1 of subsection (b) of section 7437 of the insur-
    2  ance law, as added by chapter 600 of the laws of  2011,  is  amended  to
    3  read as follows:
    4    (1) Notwithstanding any other provision of this article, including any
    5  other   provision   of  this  article  permitting  the  modification  of
    6  contracts, or other law of this state, no  person  shall  be  stayed  or
    7  prohibited  from exercising: (A) a contractual right to cause the termi-
    8  nation, liquidation, acceleration or close out of any  obligation  under
    9  OR  IN  CONNECTION  WITH  a  netting  agreement  or  qualified financial
   10  contract with an insurer, other than an insurer licensed to write finan-
   11  cial guaranty insurance,  because  of:  (i)  the  insolvency,  financial
   12  condition or default of the insurer at any time, provided that the right
   13  is enforceable under applicable law other than this article; or (ii) the
   14  commencement of any proceeding under this article; (B) any right under a
   15  security arrangement relating to one or more netting agreements or qual-
   16  ified  financial  contracts,  OTHER  THAN  A  RIGHT  AGAINST  AN INSURER
   17  LICENSED TO WRITE FINANCIAL GUARANTY INSURANCE; or (C)  subject  to  any
   18  provision of subsection (b) of section seven thousand four hundred twen-
   19  ty-seven of this article, any right to offset or net out any termination
   20  value,  payment amount, or other transfer obligation arising under or in
   21  connection with one or more qualified financial contracts, OTHER THAN  A
   22  RIGHT AGAINST AN INSURER LICENSED TO WRITE FINANCIAL GUARANTY INSURANCE,
   23  where  the  counterparty or its guarantor is organized under the laws of
   24  the United States, a state, or a foreign jurisdiction  approved  by  the
   25  Securities  Valuation  Office  of  the National Association of Insurance
   26  Commissioners as eligible for netting.
   27    S 2. This act shall take effect on the  same  date  and  in  the  same
   28  manner as chapter 600 of the laws of 2011 took effect.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD05498-08-2