Bill Text: NY A09107 | 2015-2016 | General Assembly | Introduced

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Bill Title: Relates to the distribution of dividends by domestic life insurers.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2016-02-01 - substituted by s6601 [A09107 Detail]

Download: New_York-2015-A09107-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          9107
                   IN ASSEMBLY
                                    January 27, 2016
                                       ___________
        Introduced by M. of A. BRINDISI -- read once and referred to the Commit-
          tee on Insurance
        AN  ACT  to  amend the insurance law, in relation to the distribution of
          dividends by domestic stock life insurers
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Subsection  (a)  of section 4207 of the insurance law, as
     2  amended by a chapter of the laws of  2015  amending  the  insurance  law
     3  relating  to the distribution of dividends by domestic stock life insur-
     4  ers, as proposed in legislative bills numbers S.1380-B and A.5202-B,  is
     5  amended to read as follows:
     6    (a)(1)  For  purposes  of  this  subsection, "earned surplus" means an
     7  amount equal to an insurer's positive unassigned funds, excluding eight-
     8  y-five percent of the change in net unrealized capital gains  or  losses
     9  less  capital  gains tax, for the immediately preceding calendar year as
    10  set forth in the insurer's most recent annual statutory financial state-
    11  ment filed with the superintendent pursuant  to  section  three  hundred
    12  seven of this chapter.
    13    (2)  Notwithstanding  paragraph  [two]  five  of  this subsection, any
    14  domestic stock life insurance company may distribute a dividend  to  its
    15  shareholders  out  of  earned surplus where the aggregate amount of such
    16  dividends in any calendar year does not exceed the greater of:
    17    (A) ten percent of its surplus to policyholders as of the  immediately
    18  preceding calendar year; or
    19    (B)  its net gain from operations for the immediately preceding calen-
    20  dar year, not including realized capital gains, not  to  exceed[:    (i)
    21  fifteen  percent  of  its surplus to policyholders as of the immediately
    22  preceding calendar year, if its net gain from operations, not  including
    23  realized  capital  gains,  has  been  negative in any one or more of the
    24  immediately preceding three calendar years  or  otherwise  (ii)  twenty-
    25  five]  thirty  percent  of  its surplus to policyholders as of the imme-
    26  diately preceding calendar year; provided, however, that,  notwithstand-
    27  ing  this  paragraph,  in no event may a dividend be distributed without
    28  approval of the superintendent, in accordance with paragraph [two]  five
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06932-09-6