Bill Text: NY S06950 | 2009-2010 | General Assembly | Introduced
Bill Title: Extends the time within which examination of property/casualty insurers is authorized or required; streamlines financial examinations and standards for directors of co-operative property/casualty insurance companies; authorizes non-officers of co-operative property/casualty insurance companies to sign checks and repeals section 6613 of the insurance law relating to limitation of expenses of co-operative property/casualty insurance companies.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-03-01 - REFERRED TO INSURANCE [S06950 Detail]
Download: New_York-2009-S06950-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
6950
I N S E N A T E
March 1, 2010
___________
Introduced by Sen. BRESLIN -- 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 examination of insur-
ers, incorporation of co-operative property/casualty insurance compa-
nies, the keeping of records by such companies; and to repeal section
6613 of such law relating to limitation of expenses of co-operative
property/casualty 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 309 of the insurance law is
2 amended to read as follows:
3 (b) The superintendent shall make an examination into the affairs:
4 (1) of every authorized domestic fraternal benefit society [and every
5 domestic property/casualty insurance company], at least once in every
6 three years; [except that the superintendent may extend the three year
7 interval to not more than five years with respect to a property/casualty
8 insurance company, upon determining that the three year requirement is
9 not necessary to safeguard the interests of the public or policyhold-
10 ers;]
11 (2) of every domestic life insurance company, at least once in every
12 five years; [and]
13 (3) OF EVERY DOMESTIC PROPERTY/CASUALTY INSURANCE COMPANY, AT LEAST
14 ONCE IN EVERY FIVE YEARS, EXCEPT THAT THE SUPERINTENDENT MAY EXTEND THE
15 FIVE YEAR INTERVAL TO NOT MORE THAN EIGHT YEARS, UPON DETERMINING THAT
16 THE FIVE YEAR REQUIREMENT IS NOT NECESSARY TO SAFEGUARD THE INTERESTS OF
17 THE PUBLIC OR POLICYHOLDERS; AND
18 (4) of every other authorized domestic insurer and every rate service
19 organization which makes or files rates, whether or not advisory, at
20 least once in every five years.
21 S 2. Paragraphs 2, 3, 4 and 5 of subsection (a) of section 310 of the
22 insurance law are renumbered paragraphs 3, 4, 5 and 6, respectively, and
23 a new paragraph 2 is added to read as follows:
24 (2) THE SUPERINTENDENT'S ORDER INDICATING THE SCOPE OF THE EXAMINATION
25 SHALL EXPRESSLY STATE WHETHER THE EXAMINATION IS A FINANCIAL EXAMINA-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16178-01-0
S. 6950 2
1 TION, A MARKET CONDUCT EXAMINATION OR, IF THE EXAMINATION WILL COVER
2 BOTH FINANCIAL AND MARKET CONDUCT, A COMBINED EXAMINATION. IN THE EVENT
3 OF A FINANCIAL EXAMINATION, THE FINANCIAL EXAMINATION SHALL BE CONFINED
4 TO THE PURPOSE OF A FINANCIAL EXAMINATION. MORE SPECIFICALLY, THE
5 PURPOSE OF A FINANCIAL EXAMINATION SHALL BE TO VERIFY THAT AN EXAMINED
6 ENTITY'S FINANCIAL STATEMENT, AS OF THE EXAMINATION DATE, AS WELL AS ITS
7 CORPORATE CONDUCT DURING THE EXAMINATION PERIOD, ARE IN COMPLIANCE WITH
8 THE DEPARTMENT'S LAWS, RULES AND REGULATIONS. ALL FINANCIAL EXAMINATIONS
9 SHALL BE STRICTLY LIMITED TO THE AFORESTATED PURPOSE. IF THE EXAMINATION
10 ORDERED IS A MARKET CONDUCT EXAMINATION, THEN THAT EXAMINATION SHALL BE
11 FOCUSED ON THE FAIR TREATMENT OF POLICYHOLDERS WITH THE SCOPE OF THE
12 EXAMINATION CONSISTING OF AREAS SUCH AS COMPANY OPERATIONS, COMPLAINT
13 HANDLING, MARKETING, CLAIMS, RATE AND FORM FILING AND POLICYHOLDER
14 SERVICE. ALL MARKET CONDUCT EXAMINATIONS SHALL BE STRICTLY LIMITED TO
15 THE AFORESTATED FOCUS AND SCOPE.
16 S 3. Subparagraphs (E) and (F) of paragraph 5 of subsection (a) of
17 section 6603 of the insurance law, subparagraph (E) as amended by chap-
18 ter 114 of the laws of 1988 and subparagraph (F) as added by chapter 137
19 of the laws of 1986, are amended to read as follows:
20 (E) The number of its directors, which shall be not less than [nine]
21 SEVEN, and a provision that in no case shall the number of directors be
22 less than [nine] SEVEN.
23 (F) The times and manner of electing its directors and officers, the
24 manner of filling vacancies in such offices, and a provision that at all
25 times a majority of the directors shall be citizens and residents of
26 BOTH this state and [that all shall be] ALSO residents within the terri-
27 tory in which the corporation is licensed to do business.
28 S 4. Subparagraph (C) of paragraph 4 of subsection (a) of section 6611
29 of the insurance law, as added by chapter 137 of the laws of 1986, is
30 amended to read as follows:
31 (C) All checks issued shall be signed either by [two officers] ONE
32 OFFICER or by [one officer upon the written order of another officer,
33 except as otherwise] A NON-OFFICER IF provided FOR by resolution of the
34 corporation's board of directors or in its by-laws [for handling of
35 miscellaneous expenses].
36 S 5. Section 6613 of the insurance law is REPEALED.
37 S 6. This act shall take effect immediately.
