Bill Text: NY S04951 | 2011-2012 | General Assembly | Introduced

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Bill Title: Grants the superintendent of insurance the power to suspend the requirement of a mortgage guaranty insurer to maintain a minimum policyholder surplus in relation to its outstanding risk in order for the insurer to write a new business.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2012-01-04 - REFERRED TO INSURANCE [S04951 Detail]

Download: New_York-2011-S04951-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         4951
                              2011-2012 Regular Sessions
                                   I N  S E N A T E
                                      May 2, 2011
                                      ___________
       Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
         printed to be committed to the Committee on Insurance
       AN ACT to amend the insurance law,  in  relation  to  mortgage  guaranty
         insurance and reinsurance and policyholders' surplus
         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 6502 of the insur-
    2  ance law, as amended by chapter 517 of the laws of 1989, is  amended  to
    3  read as follows:
    4    (1)  EXCEPT AS MAY BE OTHERWISE PERMITTED BY THE SUPERINTENDENT UPON A
    5  FINDING THAT IT WOULD NOT BE PREJUDICIAL TO THE INTERESTS OF THE  PEOPLE
    6  OF  THIS  STATE,  have outstanding a total liability under its aggregate
    7  insurance  policies  exceeding  twenty-five  times  its   policyholders'
    8  surplus,  computed  on  the  basis  of the company's liability under its
    9  election as provided in subsection (c)  of  section  six  thousand  five
   10  hundred  three  of this article. Total liability shall be calculated net
   11  of applicable reinsurance. [No] SUBJECT TO SUCH EXCEPTION  PERMITTED  BY
   12  THE  SUPERINTENDENT,  NO  company  which has outstanding total liability
   13  exceeding twenty-five times its policyholders'  surplus  shall  transact
   14  new  business  until  its  total liability no longer exceeds twenty-five
   15  times its policyholders' surplus. THE TERM OF EACH  EXCEPTION  PERMITTED
   16  BY  THE SUPERINTENDENT FOR A MORTGAGE INSURER SHALL NOT EXCEED TWO YEARS
   17  AND CONSECUTIVE EXCEPTIONS PERMITTED FOR A MORTGAGE INSURER  WITHOUT  AN
   18  INTERVENING  ONE-YEAR  PERIOD  OF COMPLIANCE WITH THE LIABILITY LIMIT IN
   19  THIS SUBSECTION SHALL NOT EXCEED A TOTAL OF FOUR YEARS;
   20    S 2. This act shall take effect immediately.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD05246-01-1