Bill Text: NY S06395 | 2015-2016 | General Assembly | Amended

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Bill Title: Relates to the board of directors of domestic life insurance companies.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2016-03-11 - SIGNED CHAP.8 [S06395 Detail]

Download: New_York-2015-S06395-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                         6395--A
            Cal. No. 26
                    IN SENATE
                                     January 8, 2016
                                       ___________
        Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules -- reported  favora-
          bly  from said committee, ordered to a third reading, passed by Senate
          and delivered to the Assembly, recalled, vote  reconsidered,  restored
          to  third  reading, amended and ordered reprinted, retaining its place
          in the order of third reading
        AN ACT to amend the insurance law, in relation to the board of directors
          of domestic life insurance companies
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Subsection  (b)  of section 1202 of the insurance law, as
     2  amended by a chapter of the laws of 2015,  amending  the  insurance  law
     3  relating to revising the standards relating to the board of directors of
     4  domestic  life  insurance  companies,  as  proposed in legislative bills
     5  numbers S.3012 and A.7458-A, is amended to read as follows:
     6    (b) (1) Subject to item (v) of subparagraph (B) of paragraph  five  of
     7  subsection  (a) of section one thousand two hundred one of this article,
     8  not less than one-third of the directors of a domestic stock life insur-
     9  ance company and not less than one-third of the members of each  commit-
    10  tee  of  the  board  of directors of any domestic life insurance company
    11  shall be persons who are not officers or employees of such company or of
    12  any entity controlling, controlled by, or under common control with such
    13  company and who are not beneficial owners of a controlling  interest  in
    14  the  voting  stock of such company or any such entity. At least one such
    15  person [must] shall be included in any quorum  for  the  transaction  of
    16  business at any meeting of the board of directors or any committee ther-
    17  eof.
    18    (2)  The board of directors of a domestic life insurance company shall
    19  establish one or more committees comprised solely of directors  who  are
    20  not  officers  or employees of the company or of any entity controlling,
    21  controlled by, or under common control with the company and who are  not
    22  beneficial  owners  of a controlling interest in the voting stock of the
    23  company or any such entity. Such  committee  or  committees  shall  have
    24  responsibility  for  recommending the selection of independent certified
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06895-08-6