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History
- Signed chap.461
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading rules cal.294
- Substituted for A8557A
- Referred to insurance
- Delivered to assembly
- Passed senateVote 61–0
- Advanced to third reading
- 2nd report cal.
- 1st report cal.479
Show 4 earlier actions
- Referred to insurance
- Print number 3499a
- Amend (t) 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.
Reserve investments of a domestic insurer shall include shares, share certificates and share draft accounts issued by credit unions up to certain amounts
Assembly Floor Calendar · Sponsor Joseph Morelle
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the insurance law, in relation to including credit union shares, share certificates and share draft accounts as authorized reserve investments for non-life insurers
Purpose or general idea of bill
To authorize non-life insurers, such as property/casualty insurance companies, to purchase shares, share certificates and share draft accounts by state and federally-chartered credit unions.
Summary of provisions
Insurance Law section 1404(a) is amended by adding a new paragraph 11 to clarify that credit union shares, share certificates and share draft accounts are expressly included within the list of authorized investments for non-life insurers.
Justification
In this period of unprecedented financial turmoil when even seemingly "safe" investments such as bonds are decreasing in value, it seems incongruous to not permit non-life insurers to invest in federally-backed share certificates of credit unions. Yet since credit union share certificates are considered "equity" instruments rather than debt instruments such as a bank certificate of deposit, the current Insurance Law is interpreted as not allowing investment by non-life insurers in these federally-guaranteed share certificates. Although the Insurance Department has issued an opinion disallowing such investment based on the equity/debt distinction between credit union share certificates and bank certificates of deposit, the Department in 2007 also found that an insurance agent or broker may maintain a premium account in a federally-insured credit union. Although it is true that different sections of law and a different instrument are involved, the broader policy for permitting both types of investments remains the same, namely the safety and security of a federally-insured credit union. Additionally, in some upstate communities where some of these smaller insurers operate there may be a limited number of available banking services and this measure will simply afford them an additional and convenient option. This measure would provide small and large insurance companies with another safe avenue for investing their precious assets, one that is guaranteed by the Federal government.
Prior legislative history
This is a new bill.
Fiscal implications
None.
Effective date
This act shall take effect immediately after it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.