What's happening
Writing a plain-English summary… Track this bill to get it by email.
Why it matters
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Sponsors
No co-sponsors yet.
History
- Signed chap.389
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading rules cal.339
- Substituted for A9471
- Referred to insurance
- Delivered to assembly
- Passed senateVote 61–0
- Advanced to third reading
- 2nd report cal.
- 1st report cal.288
Show 2 earlier actions
- Referred 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.
Authorizes municipal reciprocal insurers to offer full faith and credit surety bonds for public officers
Assembly Floor Calendar · Sponsor Joseph Morelle
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S5110
Title of bill
An act to amend the insurance law, in relation to organization of domes- tic reciprocal insurers
Purpose or general idea of bill
To authorize municipal reciprocal insurers to offer full faith and cred- it surety bonds for public officers.
Summary of provisions
Section 1. Subsection (a) of section 6102 of the insurance law, as amended by chapter 220 of the laws of 1986, amends the qualifications for organization of domestic reciprocal insurers.
Justification
One of the fundamental insurance coverages that all municipalities need is full faith and credit bonds for their public officers. This is a required coverage by virtue of Public Officers law, § 11 and 30, and parallel provisions of the Town, Village and General City laws. Failure to acquire such coverage for municipal officials who handle financial transactions of a municipality results in the office being vacated by operation of law.
New York Municipal Insurance Reciprocal (NYMIR) was licensed in Septem- ber of 1993 by the NYS Insurance Department pursuant to Article 61 of the NYS Insurance Law and currently provides insurance to over 600 subscriber municipalities.
It is important that NYMIR be able to offer full faith and credit surety bonds. There is now a very limited market for these types of insurances. Current law puts NYMIR and the local brokers and agents in a very diffi- cult position when trying to place these coverages. Elected officials need this coverage in order to qualify for office. They have only 30 days from the commencement of their term to acquire it, or they are deemed to have vacated the office to which they were just elected. Yet even markets that continue to offer this essential coverage are now requiring credit checks and in some cases declining to extend coverage if a satisfactory credit history is not forthcoming. As the largest underwriter of local government risk in the State, this is exactly the reason NYMIR was formed, to insure that New York's local governments will be able to acquire the insurance protections that their taxpayers require.
Prior legislative history
2008 (S7174/A10829)
Fiscal implications
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.