Bill Text: NY S06507 | 2011-2012 | General Assembly | Amended

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Bill Title: Relates to increasing the aggregate cap on liabilities for life insurers under the life insurance guaranty corporation for the purposes of determining assessments on insurers.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2012-07-18 - SIGNED CHAP.217 [S06507 Detail]

Download: New_York-2011-S06507-Amended.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        6507--A
                                   I N  S E N A T E
                                   February 17, 2012
                                      ___________
       Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
         printed to be committed to the  Committee  on  Insurance  --  reported
         favorably  from  said  committee  and  committed  to  the Committee on
         Finance -- committee discharged, bill amended,  ordered  reprinted  as
         amended and recommitted to said committee
       AN  ACT  to  amend the insurance law and the tax law, in relation to the
         life insurance company guaranty corporation of New York
         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 (e) of section 7709 of the insur-
    2  ance  law,  as  added  by chapter 802 of the laws of 1985, is amended to
    3  read as follows:
    4    (1) The total assessment against all member insurers for  all  impair-
    5  ments and insolvencies, less the amount of refunds (not including inter-
    6  est)  to  member  insurers  pursuant  to subsection (f) of this section,
    7  shall not exceed five hundred million dollars, EXCEPT THAT WITH  RESPECT
    8  TO  A  MEMBER  INSURER  THAT  IS A DOMESTIC INSURER AND IS SUBJECT TO AN
    9  ORDER OF REHABILITATION UNDER ARTICLE SEVENTY-FOUR OF THIS CHAPTER AS OF
   10  MARCH FIRST TWO THOUSAND TWELVE, SUCH ASSESSMENT  LIMIT  SHALL  BE  FIVE
   11  HUNDRED  FIFTY-EIGHT  MILLION DOLLARS; PROVIDED, HOWEVER, THAT SUCH FIVE
   12  HUNDRED FIFTY-EIGHT MILLION DOLLAR LIMIT SHALL BE SUBJECT  TO  REDUCTION
   13  IN  AN  AMOUNT,  IF ANY, DETERMINED BY THE SUPERINTENDENT, ON A DATE NOT
   14  EARLIER THAN TWELVE MONTHS AFTER THE ENTRY OF AN  ORDER  OF  LIQUIDATION
   15  WITH  RESPECT  TO SUCH DOMESTIC INSURER, TO BE NOT NEEDED FOR THE CORPO-
   16  RATION TO BE ABLE TO PAY ITS  OBLIGATIONS  AND  REASONABLE  EXPENSES  IN
   17  CONNECTION  WITH  THE  LIQUIDATION  OF  SUCH DOMESTIC INSURER, BUT IN NO
   18  EVENT SHALL SUCH REDUCTION EXCEED FIFTY-EIGHT MILLION DOLLARS.
   19    S 2. Paragraph 1 of subdivision (f) of section 1511 of the tax law, as
   20  amended by chapter 803 of the laws  of  1985,  is  amended  to  read  as
   21  follows:
   22    (1)  The  maximum  authorized credit for each taxpayer shall be deter-
   23  mined as provided in [subsection (a) of] section  seven  thousand  seven
   24  hundred twelve of the insurance law.
   25    S 3. This act shall take effect immediately.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD14723-03-2