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

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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-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          6395
                    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
        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 chapter 575 of the laws  of  2015,  is  amended  to  read  as
     3  follows:
     4    (b)  (1)  Subject to item (v) of subparagraph (B) of paragraph five of
     5  subsection (a) of section one thousand two hundred one of this  article,
     6  not less than one-third of the directors of a domestic stock life insur-
     7  ance  company and not less than one-third of the members of each commit-
     8  tee of the board of directors of any  domestic  life  insurance  company
     9  shall be persons who are not officers or employees of such company or of
    10  any entity controlling, controlled by, or under common control with such
    11  company  and  who are not beneficial owners of a controlling interest in
    12  the voting stock of such company or any such entity. At least  one  such
    13  person  [must]  shall  be  included in any quorum for the transaction of
    14  business at any meeting of the board of directors or any committee ther-
    15  eof.
    16    (2) The board of directors of a domestic life insurance company  shall
    17  establish  one  or more committees comprised solely of directors who are
    18  not officers or employees of the company or of any  entity  controlling,
    19  controlled  by, or under common control with the company and who are not
    20  beneficial owners of a controlling interest in the voting stock  of  the
    21  company  or  any  such  entity.  Such committee or committees shall have
    22  responsibility for recommending the selection of  independent  certified
    23  public  accountants,  reviewing  the  company's financial condition, the
    24  scope and results of the independent audit and any internal audit, nomi-
    25  nating candidates for director for election by shareholders  or  policy-
    26  holders, evaluating the performance of officers deemed by such committee
    27  or  committees to be principal officers of the company, and recommending
    28  to the board of directors the selection and compensation of such princi-
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06895-04-6