senate Bill S7228

Relates to assessment of certain title insurance corporations

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Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 06 / May / 2014
    • REFERRED TO INSURANCE

Summary

Relates to assessment of certain title insurance corporations.

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Bill Details

See Assembly Version of this Bill:
A10090
Versions:
S7228
Legislative Cycle:
2013-2014
Current Committee:
Senate Insurance
Law Section:
Financial Services

Sponsor Memo

BILL NUMBER:S7228

TITLE OF BILL: An act in relation to the creation of the title
insurance assessment relief act

PURPOSE: To amend the law so that all New York-domiciled licensed
title underwriters are assessed on the net premiums retained on
policies issued for property located within the state of New York.

SUMMARY OF PROVISIONS: Section one amends the law to allow a title
insurer domiciled in New York State to be assessed on direct premiums
written less amounts paid to or retained by title agents in New York
State during the calendar year immediately preceding the fiscal year
for which the assessment is made.

Section two sets forth the effective date.

JUSTIFICATION: Title insurers domiciled in New York State are subject
to annual assessments pursuant to Section 206 of the Financial
Services Law to cover operating expenses of the department solely
attributable to regulating persons under the insurance law. This
assessment is based on 100% of the gross premium of policies written
by the title insurer, but the insurer generally retains only 15% of
the premium; 85% of the premium is retained by the title agent.

This legislation, if enacted, would afford relief to domesticated
insurers while continuing to hold them responsible for the premiums
assessed by law and used for the operation of the Department of
Financial Services.

LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: Immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7228

                            I N  S E N A T E

                               May 6, 2014
                               ___________

Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
  printed to be committed to the Committee on Insurance

AN ACT in relation to the creation of  the  title  insurance  assessment
  relief act

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Title  insurance  assessment  relief  act.  Notwithstanding
section  206 of the financial services law, title insurance corporations
licensed under paragraph 18 of subsection (a) of  section  1113  of  the
insurance  law  and  domiciled  in  New  York state shall be assessed on
direct premiums written less amounts paid to or retained by title agents
in this state during the  calendar  year  ending  December  thirty-first
immediately  preceding  the end of the fiscal year for which the assess-
ment is made (less return premiums and considerations thereon) for poli-
cies or contracts of insurance covering title in this state the issuance
of which policies or contracts requires a license from  the  superinten-
dent of financial services.
  S 2. This act shall take effect immediately.






 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15014-01-4

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