Bill Text: NY A10226 | 2021-2022 | General Assembly | Introduced
Bill Title: Relates to group capital calculations, liquidity stress tests and confidentiality; authorizes the promulgation of regulations and the payment of certain expenses.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-05-09 - referred to insurance [A10226 Detail]
Download: New_York-2021-A10226-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 10226 IN ASSEMBLY May 9, 2022 ___________ Introduced by COMMITTEE ON RULES -- (at request of M. of A. Cahill) -- (at request of the Department of Financial Services) -- read once and referred to the Committee on Insurance AN ACT to amend the insurance law, in relation to group capital calcu- lations, liquidity stress tests, and confidentiality The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraphs 1 and 2 of subsection (a) of section 110 of the 2 insurance law, as amended by chapter 238 of the laws of 2013, are 3 amended to read as follows: 4 (1) may share documents, materials or other information, including 5 confidential [and], privileged, and trade secret documents, materials or 6 information with other local, state, federal, and international regula- 7 tory agencies, with the National Association of Insurance Commissioners, 8 its affiliates or subsidiaries, [and] with any third-party consultant 9 designated by the superintendent, with local, state, federal, and inter- 10 national law enforcement authorities, including members of any supervi- 11 sory college described in section three hundred two of this chapter, and 12 with any other entity designated by the superintendent in a regulation, 13 provided that the recipient has the authority and agrees to maintain the 14 confidentiality and privileged status of the document, material or other 15 information; provided, however, that this paragraph shall not be 16 construed as limiting access to records pursuant to article six of the 17 public officers law; 18 (2) may receive documents, materials or information, including other- 19 wise confidential [and], privileged, and trade secret documents, materi- 20 als or information, from the National Association of Insurance Commis- 21 sioners, its affiliates or subsidiaries [and], from regulatory and law 22 enforcement officials of other foreign or domestic jurisdictions, 23 including members of any supervisory college described in section three 24 hundred two of this chapter, and from any other entity designated by the 25 superintendent in a regulation, and shall maintain as confidential or 26 privileged any document, material or information received with notice or 27 the understanding that it is confidential or privileged under the laws EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD13689-01-2A. 10226 2 1 of the jurisdiction that is the source of the document, material or 2 information; and 3 § 2. Section 1503 of the insurance law is amended by adding a new 4 subsection (c) to read as follows: 5 (c) (1) A holding company that directly or indirectly controls an 6 insurer shall file with the superintendent an annual group capital 7 calculation and the results of an annual liquidity stress test in a form 8 prescribed by the superintendent, provided, however, that the super- 9 intendent may exempt a holding company from filing an annual group capi- 10 tal calculation or the results of an annual liquidity stress test, or 11 permit a holding company to submit a limited annual group capital calcu- 12 lation, in accordance with criteria set forth in a regulation. 13 (2) No insurer, insurance producer, or other person shall make or 14 issue in this state any advertisement, sign, pamphlet, circular, card, 15 or other public announcement purporting to make known the group capital 16 calculation, group capital ratio, liquidity stress test results or 17 supporting disclosures for such test, or any component derived in the 18 calculation thereof, of any insurer or holding company system, provided, 19 however, that an insurer may rebut any materially false statement with 20 respect to the foregoing with the superintendent's prior approval. 21 § 3. Subsection (c) of section 1504 of the insurance law, as amended 22 by chapter 238 of the laws of 2013, is amended to read as follows: 23 (c) The [superintendent shall keep the] contents of each report made 24 pursuant to this article and any information obtained in connection 25 therewith shall be confidential and proprietary and shall not be subject 26 to subpoena or discovery or admissible in evidence in any private civil 27 action, and the superintendent shall not make the same public without 28 the prior written consent of the controlled insurer to which it pertains 29 unless the superintendent, after notice and an opportunity to be heard, 30 shall determine that the interests of policyholders, shareholders or the 31 public will be served by the publication thereof. In any action or 32 proceeding by the superintendent against the person examined or any 33 other person within the same holding company system a report of such 34 examination published by the superintendent shall be admissible as 35 evidence of the facts stated therein. 36 § 4. Subsection (f) of section 1506 of the insurance law, as added by 37 chapter 238 of the laws of 2013, is amended to read as follows: 38 (f) Any holding company seeking to divest its controlling interest in 39 a domestic insurer, in any manner, shall file with the superintendent, 40 with a copy to the insurer, notice of its proposed divestiture at least 41 thirty days prior to the cessation of control, provided, however that 42 this subsection shall not apply if notice is provided as required by 43 subsection (a) of this section. 44 § 5. The insurance law is amended by adding two new sections 1511 and 45 1512 to read as follows: 46 § 1511. Expenses for group-wide supervision. A controlled insurer 47 shall be liable for and shall pay the reasonable expenses of the super- 48 intendent's participation in the administration of group-wide super- 49 vision of internationally active insurance groups, including the engage- 50 ment of attorneys, actuaries, and any other professionals and all 51 reasonable travel expenses. 52 § 1512. Regulations. The superintendent may promulgate regulations: 53 (a) requiring a controlled insurer deemed by the superintendent to be 54 in a hazardous financial condition or a condition that would be grounds 55 for a proceeding under article seventy-four of this chapter, to secureA. 10226 3 1 and maintain a deposit or bond for certain transactions within the hold- 2 ing company system; 3 (b) requiring a holding company or controlled person that is party to 4 an agreement or contract with a controlled insurer to be subject to the 5 jurisdiction of any proceeding against the controlled insurer under 6 article seventy-four of this chapter and to the superintendent, as 7 receiver, for the purpose of interpreting, enforcing, and overseeing the 8 holding company's or controlled person's obligations under the agreement 9 or contract to perform services for the controlled insurer; and 10 (c) governing records and data of, and premiums and other funds 11 belonging to a controlled insurer that are held by a holding company or 12 controlled person. 13 § 6. Subsection (d) of section 1603 of the insurance law, as added by 14 chapter 238 of the laws of 2013, is amended to read as follows: 15 (d) Any domestic insurer seeking to divest its controlling interest in 16 another domestic insurer, in any manner, shall file with the superinten- 17 dent, with a copy to the insurer, notice of its proposed divestiture at 18 least thirty days prior to the cessation of control, provided, however 19 that this subsection shall not apply if notice is provided as required 20 by subsection (a) of this section. 21 § 7. Section 1604 of the insurance law is amended by adding a new 22 subsection (c) to read as follows: 23 (c) (1) An authorized domestic insurer, other than a domestic insurer 24 required to register as a controlled insurer pursuant to section one 25 thousand five hundred three of this chapter, shall file with the super- 26 intendent an annual group capital calculation in a form prescribed by 27 the superintendent, provided, however, that the superintendent may 28 exempt an authorized domestic insurer from filing an annual group capi- 29 tal calculation or permit an authorized domestic insurer to submit a 30 limited annual group capital calculation, in accordance with criteria 31 set forth in a regulation. An authorized domestic insurer also shall 32 file the results of an annual liquidity stress test in a form prescribed 33 by the superintendent if required pursuant to a regulation. 34 (2) No insurer, insurance producer, or other person shall make or 35 issue in this state any advertisement, sign, pamphlet, circular, card, 36 or other public announcement purporting to make known the group capital 37 calculation, group capital ratio, liquidity stress test results or 38 supporting disclosures for such test, or any component derived in the 39 calculation thereof, of any authorized domestic insurer or subsidiary 40 thereof, provided, however, that an authorized domestic insurer may 41 rebut any materially false statement with respect to the foregoing with 42 the superintendent's prior approval. 43 § 8. Section 1612 of the insurance law is amended to read as follows: 44 § 1612. Regulations. (a) In addition to the powers expressly given by 45 this article, the superintendent shall have the power to promulgate, 46 from time to time, such regulations, not inconsistent with this chapter, 47 as may be appropriate to carry out this article and, insofar as applica- 48 ble to this article, other provisions of this chapter. 49 (b) The superintendent also may promulgate regulations: 50 (1) requiring an authorized domestic insurer deemed by the superinten- 51 dent to be in a hazardous financial condition or a condition that would 52 be grounds for a proceeding under article seventy-four of this chapter, 53 to secure and maintain a deposit or bond for certain transactions with a 54 subsidiary; 55 (2) requiring a subsidiary that is party to an agreement or contract 56 with an authorized domestic insurer to be subject to the jurisdiction ofA. 10226 4 1 any proceeding against the domestic insurer under article seventy-four 2 of this chapter and to the superintendent, as receiver, for the purpose 3 of interpreting, enforcing, and overseeing the subsidiary's obligations 4 under the agreement or contract to perform services for the domestic 5 insurer; and 6 (3) governing records and data of, and premiums and other funds 7 belonging to, a domestic insurer that are held by a subsidiary. 8 § 9. The insurance law is amended by adding two new sections 1613 and 9 1614 to read as follows: 10 § 1613. Expenses for group-wide supervision. An authorized domestic 11 insurer shall be liable for and shall pay the reasonable expenses of the 12 superintendent's participation in the administration of group-wide 13 supervision of internationally active insurance groups, including the 14 engagement of attorneys, actuaries, and any other professionals and all 15 reasonable travel expenses. 16 § 1614. Confidentiality of reports and filings. The contents of each 17 report and filing submitted pursuant to this article and information 18 pertaining thereto shall be kept confidential, shall not be subject to 19 subpoena or discovery, shall not be admissible in evidence in any 20 private civil action, and shall not be made public unless, after notice 21 and opportunity to be heard, the superintendent determines that the 22 interests of policyholders, subscribers, stockholders or the public will 23 be served by the publication thereof. 24 § 10. Section 1709 of the insurance law, as amended by chapter 381 of 25 the laws of 1986, is amended to read as follows: 26 § 1709. Confidentiality of [information] reports and filings. The 27 contents of each [information] report [filed hereunder] and filing 28 submitted pursuant to this article and information pertaining thereto 29 shall be kept confidential, shall not be subject to subpoena or discov- 30 ery, shall not be admissible in evidence in any private civil action, 31 and shall not be made public unless, after notice and opportunity to be 32 heard, the superintendent determines that the interests of policyhold- 33 ers, subscribers, stockholders or the public will be served by the 34 publication thereof. The provisions of this section shall not be appli- 35 cable to any [information] report [filed hereunder] or filing submitted 36 pursuant to this article and any information pertaining thereto, if the 37 parent corporation is a corporation subject to article forty-three of 38 this chapter. 39 § 11. Subsection (a) of section 1710 of the insurance law, as added by 40 chapter 238 of the laws of 2013, is amended to read as follows: 41 (a) Any parent corporation seeking to divest its controlling interest 42 in a domestic insurer, in any manner, shall file with the superinten- 43 dent, with a copy to the insurer, notice of its proposed divestiture at 44 least thirty days prior to the cessation of control, provided, however 45 that this subsection shall not apply if notice is provided as required 46 by subsection (b) of section one thousand seven hundred one of this 47 article. 48 § 12. Section 1716 of the insurance law is amended to read as follows: 49 § 1716. Regulations. (a) In addition to the powers expressly given by 50 this article, the superintendent shall have the power to promulgate, 51 from time to time, such regulations, not inconsistent with the 52 provisions of this chapter, as may be appropriate to carry out the 53 provisions of this article and, insofar as applicable to this article, 54 other provisions of this chapter. 55 (b) The superintendent also may promulgate regulations:A. 10226 5 1 (1) requiring a parent corporation deemed by the superintendent to be 2 in a hazardous financial condition or a condition that would be grounds 3 for a proceeding under article seventy-four of this chapter, to secure 4 and maintain a deposit or bond for certain transactions with a subsid- 5 iary; 6 (2) requiring a subsidiary that is party to an agreement or contract 7 with a parent corporation to be subject to the jurisdiction of any 8 proceeding against the parent corporation under article seventy-four of 9 this chapter and to the superintendent, as receiver, for the purpose of 10 interpreting, enforcing, and overseeing the subsidiary's obligations 11 under the agreement or contract to perform services for the parent 12 corporation; and 13 (3) governing records and data of, and premiums and other funds 14 belonging to, a parent corporation that are held by a subsidiary. 15 § 13. Section 1717 of the insurance law is amended by adding a new 16 subsection (c) to read as follows: 17 (c) (1) A parent corporation, other than a parent corporation required 18 to register as a controlled insurer pursuant to section one thousand 19 five hundred three of this chapter, shall file with the superintendent 20 an annual group capital calculation and the results of an annual liquid- 21 ity stress test in a form prescribed by the superintendent, provided, 22 however, that the superintendent may exempt a parent corporation from 23 filing an annual group capital calculation or the results of an annual 24 liquidity stress test, or permit a parent corporation to submit a limit- 25 ed annual group capital calculation, in accordance with criteria set 26 forth in a regulation. 27 (2) No insurer, insurance producer, or other person shall make or 28 issue in this state any advertisement, sign, pamphlet, circular, card, 29 or other public announcement purporting to make known the group capital 30 calculation, group capital ratio, liquidity stress test results or 31 supporting disclosures for such test, or any component derived in the 32 calculation thereof, of any parent corporation or subsidiary thereof, 33 provided, however, that a parent corporation may rebut any materially 34 false statement with respect to the foregoing with the superintendent's 35 prior approval. 36 § 14. The insurance law is amended by adding a new section 1718 to 37 read as follows: 38 § 1718. Expenses for group-wide supervision. A parent corporation 39 shall be liable for and shall pay the reasonable expenses of the super- 40 intendent's participation in the administration of group-wide super- 41 vision of internationally active insurance groups, including the engage- 42 ment of attorneys, actuaries, and any other professionals and all 43 reasonable travel expenses. 44 § 15. This act shall take effect immediately.
