Bill Text: NY S08404 | 2021-2022 | General Assembly | Introduced

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Bill Title: Relates to mortgage guaranty insurance.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2022-05-17 - referred to insurance [S08404 Detail]

Download: New_York-2021-S08404-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          8404

                    IN SENATE

                                    February 23, 2022
                                       ___________

        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  mortgage  guaranty
          insurance

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Paragraph 2 of subsection (a) of section 6502 of the insur-
     2  ance law is amended to read as follows:
     3    (2) it establishes a contingency reserve out of  net  premiums  (gross
     4  premiums less premiums returned to policyholders) remaining after estab-
     5  lishing  the  unearned  premium reserve. The company shall contribute to
     6  the contingency reserve an amount equal to fifty percent of such remain-
     7  ing earned premiums.   Contributions to  the  contingency  reserve  made
     8  during  each  calendar  year  shall  be  maintained  for a period of one
     9  hundred and twenty months, except that withdrawals may be  made  by  the
    10  company  with  the  prior  approval of the superintendent in any year in
    11  which the actual incurred  losses  exceed  thirty-five  percent  of  the
    12  corresponding  earned  premiums  or as otherwise permitted by the super-
    13  intendent.  The unearned premium reserve shall be computed  as  required
    14  by  section  one thousand three hundred five of this chapter except that
    15  on policies covering a risk period of more than one  year  it  shall  be
    16  computed in accordance with standards promulgated by the superintendent;
    17  and
    18    § 2. This act shall take effect immediately.




         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14750-01-2