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