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Sponsors
No co-sponsors yet.
History
- Referred to insurance
- Referred to insurance
Full text
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Sponsor's memo
Title of bill
An act to amend the insurance law, in relation to revising the provisions relating to reinsurance by domestic life insurance companies
Purpose or general idea of bill
The purpose of this bill is to amend the insurance law to amend the section of law that prohibits domestic life insurers from reinsuring the entire of a risk on any individual or joint lives.
Summary of provisions
This bill amends § 1308(f)(1)(A) of the insurance law by removing item (i) (and deleting a reference to item ii) contained in subparagraph (A). Item (i) currently prohibits domestic life insurers from reinsuring the entire of a risk on any individual or joint lives unless permitted by the Superintendent of Insurance. This subparagraph retains a prohibition against domestic insurers reinsuring a substantial portion of its in-force life insurance.
Justification
This bill would remove a provision of current law that prohibits domestic life insurers from reinsuring the entire of a risk on any individual or joint lives, unless the Superintendent permits such reinsurance. This provision is unique to New York State and only serves to require domestic insurers to take an extra step when determining what risks in their book of business they choose to reinsure. The rationale for why this prohibition was enacted in the first place is in question and this provision seems to have outlived its initial purpose. Removal of this provision will make it easier for domestic life insurers to operate without being penalized for not complying with a provision that has outlived its purpose. This bill would keep in place a provision that would prohibit insurers from reinsuring a substantial portion of its entire, in-force book of business.
Prior legislative history
None.
Fiscal implications
No known costs to the State are associated with this bill.
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.