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Who cares
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Sponsors
No co-sponsors yet.
History
- Substituted by A10391A
- Amended on third reading 6710a
- Advanced to third reading
- 2nd report cal.
- 1st report cal.475
- Reported and committed to banks
- 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.
Relates to risk based capital for property/casualty insurers and reports filed by the superintendent of financial services; repealer
Signed by Governor · Sponsor Dan Quart
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S6710A
Title of bill
An act to amend the insurance law, in relation to risk-based capital for property/casualty insurers; to amend the financial services law, in relation to annual reports of the superintendent; and to repeal certain provisions of the insurance law and the banking law relating to annual reporting requirements of the superintendent of financial services
Purpose of the bill
The purpose of this bill is to amend the Insurance Law in relation to risk-based capital ("RBC") for property/casualty insurers and to amend the Insurance Law, Banking Law, and Financial Services Law in relation to the Superintendent of Financial Services' ("Superintendent's") annual report.
Summary of provisions
Section 1 of this bill would amend Insurance Law § 1324(d)(1) to add to the definition of "company action level event" the filing by an insurer of an RBC report indicating that the insurer has total adjusted capital that is greater than or equal to its company action level RBC, but less than the product of 3.0 and its authorized control level RBC, and with a combined ratio greater than 120% as determined in accordance with the trend test calculation in the RBC instructions.
Section 2 would repeal Insurance Law § 206, which pertains to the Superintendent's annual report regarding insurance.
Section 3 would repeal Banking Law § 43, which applies to the Superintendent's annual report regarding banking.
Section 4 would add a new Financial Services Law § 207, which requires the Superintendent to submit annually a report regarding insurance, banking, and financial products or services.
Section 5 would provide for an immediate effective date.
Existing law
Insurance Law § 1324 applies to RBC for property/casualty insurers, but does not set forth 3n RBC trend test.
Insurance Law § 206 requires the Superintendent to submit a report annually to the Legislature regarding insurance. Banking Law § 43 requires the Superintendent to submit a report annually to the Governor and the Legislature regarding banking.
Prior legislative history
This is a new bill.
Statement in support
This bill would amend Insurance Law § 1324 to set forth a property/casualty RBC trend test. This test became an accreditation standard as of January 1, 2012 and is necessary for the Department to maintain its accreditation status with the National Association of Insurance Commissioners ("NAIC"). Accredited state departments must undergo a comprehensive review every five years by an independent review team to ensure they continue to meet baseline standards. The accreditation standards require that state departments have adequate statutory and administrative authority to regulate an insurer's corporate and financial affairs, and that they have the necessary resources to carry out that authority. The RBC trend test also will help the Department better monitor the financial health of property/casualty insurers.
The bill also combines the separate annual reports required to be submitted by the former Superintendents of Insurance and Banking and eliminates certain obsolete provisions.
Fiscal implications
There are no fiscal implications from this bill.
Effective date
This bill would take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.