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

                                 6395--A
    Cal. No. 26

                            I N  S E N A T E

                             January 8, 2016
                               ___________

Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules -- reported  favora-
  bly  from said committee, ordered to a third reading, passed by Senate
  and delivered to the Assembly, recalled, vote  reconsidered,  restored
  to  third  reading, amended and ordered reprinted, retaining its place
  in the order of third reading

AN ACT to amend the insurance law, in relation to the board of directors
  of domestic life insurance companies

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

  Section  1.  Subsection  (b)  of section 1202 of the insurance law, as
amended by a chapter of the laws of 2015,  amending  the  insurance  law
relating to revising the standards relating to the board of directors of
domestic  life  insurance  companies,  as  proposed in legislative bills
numbers S.3012 and A.7458-A, is amended to read as follows:
  (b) (1) Subject to item (v) of subparagraph (B) of paragraph  five  of
subsection  (a) of section one thousand two hundred one of this article,
not less than one-third of the directors of a domestic stock life insur-
ance company and not less than one-third of the members of each  commit-
tee  of  the  board  of directors of any domestic life insurance company
shall be persons who are not officers or employees of such company or of
any entity controlling, controlled by, or under common control with such
company and who are not beneficial owners of a controlling  interest  in
the  voting  stock of such company or any such entity. At least one such
person [must] SHALL be included in any quorum  for  the  transaction  of
business at any meeting of the board of directors or any committee ther-
eof.
  (2)  The board of directors of a domestic life insurance company shall
establish one or more committees comprised solely of directors  who  are
not  officers  or employees of the company or of any entity controlling,
controlled by, or under common control with the company and who are  not
beneficial  owners  of a controlling interest in the voting stock of the
company or any such entity. Such  committee  or  committees  shall  have
responsibility  for  recommending the selection of independent certified

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                      [ ] is old law to be omitted.
                                                           LBD06895-08-6

S. 6395--A                          2

public accountants, reviewing the  company's  financial  condition,  the
scope and results of the independent audit and any internal audit, nomi-
nating  candidates  for director for election by shareholders or policy-
holders, evaluating the performance of officers deemed by such committee
or  committees to be principal officers of the company, and recommending
to the board of directors the selection and compensation of such princi-
pal officers and in the case of a domestic stock life insurance company,
recommending to its board of directors any plan to issue options to  its
officers  and employees for the purchase of shares of stock, pursuant to
section one thousand two hundred seven of this article.
  (3) The provisions of this subsection shall not apply  to  a  domestic
life  insurance company if the [person controlling such insurance compa-
ny] HOLDING COMPANY OR PARENT CORPORATION is [an] A FOREIGN OR  DOMESTIC
insurance company, a mutual insurance holding company ESTABLISHED PURSU-
ANT  TO  THE  LAWS  OF THE UNITED STATES, or a publicly held corporation
INCORPORATED IN THE UNITED STATES,  having  a  board  of  directors  and
committees  thereof  that  meet  the SAME requirements [of] AS HAVE BEEN
ESTABLISHED FOR A DOMESTIC STOCK  LIFE  INSURANCE  COMPANY  PURSUANT  TO
paragraphs one and two of this subsection. IN SUCH A CASE, THE DIRECTORS
OF  THE  HOLDING  COMPANY OR PARENT CORPORATION SHALL BE SUBJECT TO THIS
CHAPTER IN THE SAME MANNER AS THE DIRECTORS OF  A  DOMESTIC  STOCK  LIFE
INSURANCE COMPANY.
  S  2.  This  act  shall  take  effect on the same date and in the same
manner as a chapter of the laws of  2015,  amending  the  insurance  law
relating to revising the standards relating to the board of directors of
domestic  life  insurance  companies,  as  proposed in legislative bills
numbers S.3012 and A.7458-A, takes effect.