Bill Text: NY A10229 | 2021-2022 | General Assembly | Introduced
Bill Title: Makes technical corrections to law references in the insurance law; eliminates certain gender-specific language relating to the superintendent of insurance.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2022-07-21 - signed chap.435 [A10229 Detail]
Download: New_York-2021-A10229-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 10229 IN ASSEMBLY May 10, 2022 ___________ Introduced by COMMITTEE ON RULES -- (at request of M. of A. Niou) -- read once and referred to the Committee on Insurance AN ACT to amend the insurance law, in relation to making technical corrections to law references and eliminates certain gender-specific language relating to the superintendent of insurance The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph 3 of subsection (b) of section 314 of the insur- 2 ance law is amended to read as follows: 3 (3) to make an examination into the affairs of every system, including 4 compliance with the standards established pursuant to paragraph two 5 [hereof] of this section, at least once in every five years in accord- 6 ance with the provisions of sections three hundred ten, three hundred 7 eleven and three hundred twelve of this article and to recover the 8 expenses of such examination from such system in accordance with the 9 provisions of subsection (f) of section [three hundred thirteen] two 10 hundred six of [this article] the financial services law. A copy of 11 each report on examination as filed for public inspection shall be 12 forwarded to the governor, state comptroller and legislature and, in the 13 case of systems of the city of New York, to the mayor, city comptroller 14 and president of the city council. 15 § 2. Paragraph 1 of subsection (c) of section 1218 of the insurance 16 law is amended to read as follows: 17 (1) Whenever the superintendent believes this section is being 18 violated, [he] the superintendent shall serve upon the insurer or insur- 19 ers and the director or directors, as the case may be, a notice pursuant 20 to section three hundred [three] four of [this chapter] the financial 21 services law of a hearing before the superintendent to be held not less 22 than thirty days after such service and requiring such insurer or insur- 23 ers and such director or directors, as the case may be, to show cause 24 why an order should not be made by the superintendent directing such 25 insurer or insurers and such director or directors, as the case may be, 26 to cease and desist from such violation. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD15787-02-2A. 10229 2 1 § 3. Paragraph 2 of subsection (h) of section 2108 of the insurance 2 law, as amended by chapter 257 of the laws of 1995, is amended to read 3 as follows: 4 (2) Notwithstanding the requirement of subsection (f) of this section 5 that each individual applicant for an independent adjuster's license or 6 sub-license shall take and pass a personal written examination in order 7 to satisfy the superintendent as to trustworthiness and competency, the 8 superintendent may in the superintendent's discretion, if satisfied that 9 the person applying for such temporary permit has in all other respects 10 met the requirements of this section with respect to the licensing of 11 independent adjusters and is qualified by training and experience to 12 adjust claims as an employee of a licensed independent adjuster, author- 13 ized insurer, or any adjustment bureau or association owned and main- 14 tained by insurers to adjust or investigate motor vehicle body damage 15 losses, issue such temporary permit to be effective for such period of 16 time as the superintendent may specify therein but, in no event, for a 17 period in excess of one hundred twenty days. The superintendent may 18 summarily suspend or revoke any temporary permit issued pursuant to this 19 subsection upon ten [days] days' notice in writing to the permittee of 20 the superintendent's intention to do so, which notice shall be given in 21 accordance with the applicable provisions of subsections (a) and (d) of 22 section three hundred [three] four of [this chapter] the financial 23 services law. 24 § 4. Paragraph 3 of subsection (f) of section 2110 of the insurance 25 law, as amended by chapter 687 of the laws of 2003, is amended to read 26 as follows: 27 (3) Before revoking the license of any non-resident insurance producer 28 in accordance with this section, the superintendent shall give ten days' 29 notice in writing to such producer of the action proposed to be taken, 30 which notice shall be given in accordance with the applicable provisions 31 of subsections (a) and (d) of section three hundred [three] four of 32 [this chapter] the financial services law. 33 § 5. Section 2405 of the insurance law is amended to read as follows: 34 § 2405. Hearings and reports on defined violations and determined 35 violations. (a) Whenever the superintendent has reason to believe that a 36 person has committed or is committing a defined violation or has been 37 engaged in or is engaging in any method of competition, or any act or 38 practice, [which] could become a determined violation and that a 39 proceeding thereon would be in the interest of the public, [he] the 40 superintendent shall serve upon the person in the manner provided by 41 section three hundred [three] four of [this chapter] the financial 42 services law, a statement of the charges and notice of a hearing to be 43 held at a time not less than ten days after the date of service of the 44 notice and at the place fixed in the notice. 45 (b) The person shall have an opportunity at the hearing to be heard 46 personally or by counsel, and, in the case of a defined violation, to 47 show cause why an order should not be made by the superintendent requir- 48 ing the person to cease and desist from the charged defined violation. 49 Upon good cause shown, the superintendent shall permit anyone to inter- 50 vene, appear and be heard at the hearing personally or by counsel. 51 (c) After the hearing, the superintendent shall make a written report 52 containing [his] the superintendent's findings, and shall serve a copy 53 of the report upon the person and any intervenor. 54 § 6. Subsection (e) of section 4308 of the insurance law, as amended 55 by chapter 107 of the laws of 2010, is amended to read as follows:A. 10229 3 1 (e) Notwithstanding any other provision of law, the superintendent 2 shall have the power to require independent management and financial 3 audits of corporations subject to the provisions of this article whenev- 4 er in the judgment of the superintendent, losses sustained by a corpo- 5 ration jeopardize its ability to provide meaningful coverage at afforda- 6 ble rates or when such audit would be necessary to protect the interests 7 of subscribers. The audit shall include, but not be limited to, an 8 investigation of the corporation's provision of benefits to senior citi- 9 zens, individual and family, and small group and small business 10 subscribers in relation to the needs of those subscribers. The audit 11 shall also include an evaluation of the efficiency of the corporation's 12 management, particularly with respect to lines of business [which] that 13 are experiencing losses. In every case in which the superintendent 14 chooses to require an audit provided for in this subsection, the super- 15 intendent shall have the authority to select the auditor. Any costs 16 incurred as a result of the operation of this subsection shall be 17 assessed on all domestic insurers in the same manner as provided for in 18 section [three] two hundred [thirty-two] six of [this chapter] the 19 financial services law. 20 § 7. Subsection (b) of section 4315 of the insurance law is amended to 21 read as follows: 22 (b) Except as provided in subsection (a) [hereof] of this section, all 23 orders of the superintendent and all final orders or decisions of the 24 commissioner of health made under the provisions of this article shall 25 be subject to judicial review as provided in section three hundred 26 [twenty-six] eight of [this chapter] the financial services law. 27 § 8. Section 4521 of the insurance law is amended to read as follows: 28 § 4521. Grounds for revocation or suspension of license. The super- 29 intendent may revoke or suspend the license to do business in this state 30 of any domestic, foreign or alien society, if, after notice to and hear- 31 ing of such society in accordance with sections three hundred [three] 32 four, three hundred [four] five and three hundred [five] six of [this33chapter] the financial services law, [he] the superintendent finds any 34 one or more of the following grounds therefor: 35 (a) that such society has exceeded its powers under its charter or 36 under its license to do business; 37 (b) that such society has failed to comply with any requirement of 38 this chapter applicable thereto; 39 (c) that such society is conducting its insurance business fraudu- 40 lently or in a way hazardous to its members, its creditors or the 41 public; 42 (d) that such society is not carrying out its contracts in good faith; 43 and 44 (e) in the case of a foreign or alien society, that the society is not 45 conforming in substance to all of the requirements imposed on domestic 46 societies, and in such a case, the revocation may be in addition to, or 47 in lieu of, a proceeding under article seventy-four of this chapter in 48 the circumstances specified in section four thousand five hundred nine- 49 teen of this article. 50 § 8. Section 4521 of the insurance law is amended to read as follows: 51 § 4521. Grounds for revocation or suspension of license. The super- 52 intendent may revoke or suspend the license to do business in this state 53 of any domestic, foreign or alien society, if, after notice to and hear- 54 ing of such society in accordance with sections three hundred [three] 55 four, three hundred [four] five and three hundred [five] six of [thisA. 10229 4 1chapter] the financial services law, [he] the superintendent finds any 2 one or more of the following grounds therefor: 3 (a) that such society has exceeded its powers under its charter or 4 under its license to do business; 5 (b) that such society has failed to comply with any requirement of 6 this chapter applicable thereto; 7 (c) that such society is conducting its insurance business fraudu- 8 lently or in a way hazardous to its members, its creditors or the 9 public; 10 (d) that such society is not carrying out its contracts in good faith; 11 and 12 (e) in the case of a foreign or alien society, that the society is not 13 conforming in substance to all of the requirements imposed on domestic 14 societies, and in such a case, the revocation may be in addition to, or 15 in lieu of, a proceeding under article seventy-four of this chapter in 16 the circumstances specified in section four thousand five hundred nine- 17 teen of this article. 18 § 9. Subsection (a) of section 4523 of the insurance law is amended to 19 read as follows: 20 (a) Any person, firm, association or corporation who or which shall 21 solicit a member or members for, or in any way assist in procuring a 22 member or members for, or collect payments or dues for or in connection 23 with the membership of, any fraternal benefit society [which] that is 24 not licensed to do business in this state and [which] that is not 25 exempted under the provisions of section four thousand five hundred 26 twenty-two of this article shall be guilty of a misdemeanor, and in 27 addition, such person, firm, association or corporation shall be liable 28 to a penalty of one hundred dollars for each person so solicited or so 29 procured to become a member in such unauthorized society, and may in 30 addition to either of the foregoing, be enjoined from doing any such 31 unlawful acts, in the manner specified in section three hundred [twen-32ty-seven] nine of [this chapter] the financial services law. 33 § 10. Subsection (b) of section 4711 of the insurance law, as added by 34 chapter 689 of the laws of 1994, is amended to read as follows: 35 (b) In connection with such examinations, the superintendent may exer- 36 cise the powers set forth in sections [three hundred four, three hundred37five,] three hundred six, three hundred eight, three hundred ten, three 38 hundred eleven, and three hundred twelve[, and three hundred thirteen] 39 of this chapter and subsection (f) of section two hundred six and 40 sections three hundred five and three hundred six of the financial 41 services law, and may also require special reports from a municipal 42 cooperative health benefit plan as specified in section three hundred 43 eight of this chapter. 44 § 11. Section 5409 of the insurance law is amended to read as follows: 45 § 5409. Examinations. The superintendent may, in accordance with arti- 46 cle three of this chapter, make an examination into the affairs of the 47 association whenever [he] the superintendent deems it expedient. The 48 expenses of every such examination shall be borne and paid by the asso- 49 ciation in the manner prescribed by subsection (f) of section [three] 50 two hundred [thirteen] six of [this chapter] the financial services law. 51 § 12. Subsection (a) of section 5603 of the insurance law, as added by 52 chapter 266 of the laws of 1986, is amended to read as follows: 53 (a) There is established within the department an arbitration adminis- 54 tration fund which shall be considered to be an expense of the depart- 55 ment and shall be funded by order of the superintendent, pursuant to 56 section [three] two hundred [thirty-two] six of [this chapter] theA. 10229 5 1 financial services law in such amount as shall be sufficient to defray 2 the actual administrative expenses of the department and the arbitration 3 administrator for the projected number of arbitration proceedings for a 4 [twelve month] twelve-month period, after taking into consideration any 5 excessive or insufficient amounts from the previous assessments, any 6 appropriation of public funds for this purpose and any funds collected 7 from claimants participating in the arbitration. If the amount assessed 8 for any [twelve month] twelve-month period is insufficient to defray 9 expenses during that period, a further assessment may be ordered by the 10 superintendent. The arbitration administrator shall establish reasonable 11 fees for claimants who participate in the arbitration, subject to the 12 approval of the superintendent. 13 § 13. Subsection (a) of section 6707 of the insurance law, as added by 14 chapter 598 of the laws of 2000, is amended to read as follows: 15 (a) Every nonprofit property/casualty insurance company subject to the 16 provisions of this article shall be exempt from any fees, taxes, special 17 ad valorem levies or assessments of any kind, including, but not limited 18 to, franchise taxes, sales taxes or other taxes, upon or with respect to 19 any property owned by it or under its jurisdiction, control or super- 20 vision, or upon the uses thereof, or upon or with respect to its activ- 21 ities or operations in furtherance of the powers conferred upon it by 22 this article, or upon or with respect to any revenues or other income 23 received by the nonprofit property/casualty insurance company, except 24 that every nonprofit property/casualty insurance company licensed pursu- 25 ant to this article shall be subject to the assessment upon domestic 26 insurers under section [three] two hundred [thirty-two] six of [this27chapter] the financial services law, the assessments upon insurance 28 carriers under sections one hundred fifty-one and two hundred twenty- 29 eight of the workers' compensation law and all special fund assessments 30 upon insurance carriers under the workers' compensation law. 31 § 14. Subsection (b) of section 7001 of the insurance law, as added by 32 section 146 of part A of chapter 389 of the laws of 1997, is amended to 33 read as follows: 34 (b) In addition to the provisions of this article and this chapter 35 specifically referred to in this article, the following provisions of 36 this chapter shall apply to captive insurance companies: 37 (1) article one of this chapter, pertaining to general provisions; 38 (2) sections three hundred one, [three hundred two, three hundred39three, three hundred four, three hundred five,] three hundred six, three 40 hundred eight, three hundred ten, three hundred eleven, three hundred 41 twelve[, three hundred thirteen, three hundred twenty-six, three hundred42twenty-seven,] and three hundred twenty-nine[, and three hundred thir-43ty-two] of this chapter and sections two hundred six, three hundred 44 three, three hundred four, three hundred five, three hundred six, three 45 hundred eight, and three hundred nine of the financial services law, 46 pertaining to certain administrative and procedural provisions; and 47 (3) article seventy-four of this chapter, pertaining to rehabili- 48 tation, liquidation, conservation and dissolution of insurers. 49 § 15. Paragraph 4 of subsection (c) of section 7003 of the insurance 50 law, as added by section 146 of part A of chapter 389 of the laws of 51 1997, is amended to read as follows: 52 (4) In order to provide for the review of the application submitted 53 pursuant to this subsection in a timely manner, the superintendent may 54 engage such other qualified persons and services as may be necessary. 55 Prior to retaining any such persons and services, the superintendent 56 shall notify the applicant and provide an estimate of the cost of suchA. 10229 6 1 services. The superintendent shall recover such costs in the manner 2 prescribed in subsection (f) of section [three] two hundred [thirteen] 3 six of [this chapter] the financial services law. 4 § 16. Section 7007 of the insurance law, as added by section 146 of 5 part A of chapter 389 of the laws of 1997, is amended to read as 6 follows: 7 § 7007. Examinations. The superintendent may make an examination 8 into the affairs of any captive insurance company licensed to do a 9 captive insurance business in this state whenever it is deemed necessary 10 for the protection of the interests of the people of this state but the 11 superintendent shall conduct at least one examination every five years. 12 Such examinations shall be conducted in accordance with the provisions 13 of sections three hundred ten, three hundred eleven, three hundred 14 twelve [and three hundred thirteen] of this chapter and subsection (f) 15 of section two hundred six of the financial services law. 16 § 17. Subsection (x) of section 7312 of the insurance law, as added by 17 chapter 683 of the laws of 1988, is amended to read as follows: 18 (x) Effect on department personnel. Notwithstanding subsection (a) of 19 section [two] five hundred [four] one of [this chapter] the financial 20 services law, the superintendent, any deputy or other employee of the 21 department shall be permitted to receive and exercise any rights 22 received as a policyholder in connection with a reorganization. 23 § 18. Subparagraph (C) of paragraph 1 of subsection (b) of section 24 7910 of the insurance law, as added by chapter 614 of the laws of 1997, 25 is amended to read as follows: 26 (C) At the hearing, the burden shall be on the superintendent to show 27 why the order issued pursuant to this paragraph is justified. The 28 provisions of section three hundred [four] five of [this chapter] the 29 financial services law shall apply to a hearing requested under this 30 paragraph. 31 § 19. Paragraph 1 of subsection (b) of section 9109 of the insurance 32 law is amended to read as follows: 33 (1) If a company, association or person fails within the prescribed 34 time to file any report or statement required by this article or by 35 section two thousand one hundred eighteen of this chapter, or to make 36 any payment due under the provisions of this article or sections [three37hundred thirteen, three hundred thirty-two,] three hundred thirty-three, 38 one thousand one hundred twelve, two thousand one hundred five, two 39 thousand one hundred eighteen or four thousand four hundred seven of 40 this chapter or section two hundred six of the financial services law, 41 the superintendent may order such company, association or person to pay 42 to the people of this state the following penalties: 43 (A) not less than one hundred nor more than five hundred dollars for 44 each and every failure to file a report or statement within the time 45 prescribed; 46 (B) five percent of the principal amount of any payment due plus an 47 additional one percent of said sum for the second and subsequent months 48 or fractions thereof during which payment has not been made. 49 § 20. This act shall take effect immediately.
