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Sponsors
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History
- Substituted by S6948
- Rules report cal.351
- Reported
- Reported referred to rules
- Print number 10178a
- Amend and recommit to insurance
- Referred to insurance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Enacts provisions relating to reciprocal insurers having a corporate attorney-in-fact wholly owned by subscribers at the reciprocal insurers
Signed by Governor · Sponsor Neil D. Breslin
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:A10178A
Title of bill
An act to amend the insurance law, in relation to the amendment of the subscribers agreements of reciprocal insurers
Purpose or general idea of bill
Enacts provisions relating to recipro- cal insurers having a corporate attorney-in-fact wholly owned by subscribers.
SUMMARY OF PROVISIONS:; This measure would amend sections 6106 and 6107 of the Insurance Law to correct an anomaly that occurred in the 1984 recodification of the Insurance Law. (L. 1984, c. 367).
Section 1 amends paragraph (2) of subdivision (a) of section 6106 of the insurance law to reinsert language omitted in the recodification of the insurance law in 1984.
Section 2 requires reciprocal insurers having an attorney-in-fact wholly owned by the subscribers and who have not provided a copy of the subscriber's agreement printed with each policy to do so at the time of a revision of the subscriber's agreement.
Section 3 provides for the effective date.
Justification
The proposed bill reinserts into section 6106 the language previously existing in the pre-recodification section 415, referring to reciprocals having a corporate attorney in fact wholly owned by the subscribers of the reciprocal.
In addition, the proposed bill includes a new provision in insurance law section 6107 to avoid transition difficulties that would otherwise ensue for insurers who have attorneys-in-fact wholly owned by their subscrib- ers, but who currently are not expressly authorized to issue renewal insurance policies with the notice that the acceptance of the policy with the subscribers' agreement attached constitutes the signing of the subscribers agreement.
The new procedure allows such reciprocals (and reciprocals authorized to issue non-assessable policies) to transmit to the subscribers changes to the subscribers agreement together with the entire subscribers agreement in force. In addition, the proposed change must be submitted to the subscribers with a notice stating that the failure to object to the amendment within sixty days constitutes the acceptance of the agreement as amended.
All reciprocal insurer subscribers' agreement amendments must be approved by the Superintendent pursuant to subdivision (b) of section 6107 of the insurance law, and by the advisory committee of the recipro- cal pursuant to subdivision (d) of section 6107. Therefore, the new procedure provides essentially the same safeguards and efficiencies recognized in the procedures authorized by prior sections 415 and 416 of the insurance law before the 1984 recodification.
Prior legislative history
This is a new bill.
Fiscal implications
None.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.