Senate Bill S3635

Signed By Governor

2009-2010 Legislative Session

Revises the standards relating to incorporation of stock/mutual insurance companies in New York state

download bill text pdf

Archive: Last Bill Status Via A1005 - Signed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Aug 11, 2009	signed chap.293
Jul 31, 2009	delivered to governor
Jul 16, 2009	returned to assembly passed senate 3rd reading cal.178 substituted for s3635b
Jul 16, 2009	substituted by a1005c
Jun 04, 2009	amended on third reading 3635b
Apr 22, 2009	advanced to third reading
Apr 21, 2009	2nd report cal.
Apr 20, 2009	1st report cal.178
Apr 06, 2009	print number 3635a
Apr 06, 2009	amend and recommit to insurance
Mar 25, 2009	referred to insurance

Votes

- Jul 16, 2009 - Floor Vote
  A1005
  
  Aye
  
  58
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  4
  
  Abstained
  
  0
  - - Floor Vote: Jul 16, 2009
      
      aye (58)
      
      Adams
      
      Addabbo Jr.
      
      Alesi
      
      Aubertine
      
      Bonacic
      
      Breslin
      
      DeFrancisco
      
      Dilan
      
      Duane
      
      Espada
      
      Farley
      
      Flanagan
      
      Foley
      
      Fuschillo
      
      Golden
      
      Griffo
      
      Hannon
      
      Hassell-Thompson
      
      Huntley
      
      Johnson
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Leibell
      
      Libous
      
      Little
      
      Marcellino
      
      Maziarz
      
      McDonald
      
      Monserrate
      
      Montgomery
      
      Morahan
      
      Nozzolio
      
      Onorato
      
      Oppenheimer
      
      Padavan
      
      Parker
      
      Perkins
      
      Ranzenhofer
      
      Robach
      
      Saland
      
      Sampson
      
      Savino
      
      Schneiderman
      
      Serrano
      
      Seward
      
      Skelos
      
      Smith
      
      Stachowski
      
      Stavisky
      
      Stewart-Cousins
      
      Thompson
      
      Valesky
      
      Volker
      
      Winner
      
      Young
      
      excused (4)
      
      Diaz
      
      Johnson
      
      Kruger
      
      Squadron

Bill Amendments

Original

B (Active)

2009-S3635 - Details

Laws Affected:: Amd §§1201, 1202 & 1209, Ins L

2009-S3635 - Summary

Relates to the incorporation of stocks and mutual insurance companies.

2009-S3635 - Sponsor Memo

                                 BILL NUMBER:  S3635

 TITLE OF BILL :
An act to amend the insurance law, in relation to revising the
standards relating to the incorporation of stock or mutual insurance
companies


 PURPOSE OR GENERAL IDEA OF BILL :
To revise the standards relating to the incorporation of stock or
mutual insurance companies so that the incorporators of an insurance
corporation need only list their city and state of residence in
newspapers and the company charter. This bill would also reduce the
number of directors from thirteen to seven. The bill also removes the
requirement that not less than two directors be residents of New York
State. The bill would also reduce the number of officers who must be
directors from two to one.

 SUMMARY OF PROVISIONS :
This bill would amend Section 1201(a)(3) of the Insurance Law to
remove the requirement that the proposed incorporators of a New York
insurance corporation publish in a newspaper their residence address
and require, instead, that they only publish their city and state of
residence. The bill would also amend Section 1201(a)(5)(vii) to remove
the requirement that the residence address of the proposed
incorporators be contained in the corporate charter and require.

instead, that they only publish their city and state of residence.

In addition, Sections 1201(a)(5)(v), 1202(a) (2), and 1209(b) of the
Insurance Law would be amended to reduce the number of directors
necessary to incorporate a stock or mutual insurance company from
thirteen to seven. Section 1201(a)(5)(vi) would be amended to remove
the requirement that not less than two directors be residents of New
York State. The bill would also amend Section 1209(c) to reduce the
number of officers who must be a director from two to one.

 JUSTIFICATION :
The requirement that the incorporators of a new insurance corporation
in New York must publicize their home addresses has been a potential
impediment to the formation of new companies in the state. It is
understandable that these individuals would be uncomfortable with
disclosing their home addresses in the newspaper and it is not
essential for the public to know this information.  Rather, it appears
that publication of the city and state of residence would be
sufficient for this purpose.

In today's global economy, a smaller board of directors would allow
more companies to incorporate and respond to the rapidly changing
economy. Likewise, there does not appear to be a rationale for
requiring that at least two of the board members be New York State
residents.  Many insurers in New York are now global enterprises and,
given the increased demands for improved corporate governance being
placed upon financial services corporations, it does not seem
necessary to require that two directors be state residents. The
primary consideration for selecting members of a company's Board of
Directors should be to identify individuals with superior intelligence
and high values who have an understanding of the business at hand,
regardless of their location.

 PRIOR LEGISLATIVE HISTORY :
2008: A.8767 S.2085-A
2009: A.1005-A

 FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
This act will take effect immediately.

2009-S3635 - Bill Text download pdf

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

                                  3635

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             March 25, 2009
                               ___________

Introduced  by  Sens.  BRESLIN,  STACHOWSKI,  PARKER, MONSERRATE -- read
  twice and ordered printed, and when printed to  be  committed  to  the
  Committee on Insurance

AN ACT to amend the insurance law, in relation to revising the standards
  relating to the incorporation of stock or mutual insurance companies

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

  Section 1. Paragraph 3 of subsection (a) of section 1201 of the insur-
ance law is amended to read as follows:
  (3) The proposed incorporators shall publish in such newspaper,  twice
a  week  for  three  successive  weeks or once a week for six successive
weeks, a notice of intention to form such  a  corporation,  stating  its
proposed  name,  the  kinds  of insurance business to be transacted, the
names and CITY AND STATE OF residence [addresses] of the proposed incor-
porators, the location of its principal office in this state, and, if  a
stock corporation, the amount of its proposed initial capital.
  S  2.  Items (v), (vi) and (vii) of subparagraph (B) of paragraph 5 of
subsection (a) of section 1201 of the insurance law, item (v) as amended
by chapter 552 of the laws of 1996 and item (vi) as amended  by  chapter
532 of the laws of 2003, are amended to read as follows:
  (v) the number of directors, or that it shall be not less than a stat-
ed minimum nor more than a stated maximum. Except as provided in section
six  thousand  four  hundred two of this chapter the number of directors
shall not be less than [thirteen, however, a life insurance  corporation
with  admitted assets of less than one and one-half billion dollars, may
have not less than nine directors of which at least  four  must  not  be
officers  or  employees  of  the  company  or  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. The charter of such  life  insurance  corpo-
ration  that  has less than thirteen, but at least nine, directors shall

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09806-01-9

S. 3635                             2

provide that the number of directors shall be increased to not less than
thirteen within one year following the end of the calendar year in which
the corporation exceeded one and one-half billion  dollars  in  admitted
assets]  SEVEN.    As used in this item, "number of directors" means the
total number of directors which the corporation would have if there were
no vacancies;
  (vi) the times and manner of  electing  directors  and  officers,  the
manner  of  filling vacancies, and provision that each director shall be
at least eighteen years of age and that at all times a majority shall be
citizens and residents of the United States[, and that not less than two
shall be residents of this state];
  (vii) the  names  and  [post  office]  CITY  AND  STATE  OF  residence
[addresses]  of  the  directors,  who shall serve until the first annual
meeting of such corporation;
  S 3. Paragraph 2 of subsection (a) of section 1202  of  the  insurance
law,  as  amended by chapter 802 of the laws of 1985, is amended to read
as follows:
  (2) If not otherwise fixed under this article,  the  number  shall  be
[thirteen]  SEVEN  but  it  may be increased or[, subject to item (v) of
subparagraph (B) of paragraph five of  subsection  (a)  of  section  one
thousand two hundred one of this article,] decreased by amendment of the
by-laws,  or  by  action  of the board, subject to the following limita-
tions: (i) if the board is authorized by  the  by-laws  to  increase  or
decrease  the  number of directors, the amendment shall require the vote
of a majority of the entire board; [and] (ii) no decrease shall  shorten
the  term  of any incumbent director; AND (III) NO DECREASE SHALL REDUCE
THE NUMBER OF DIRECTORS TO FEWER THAN SEVEN.
  S 4. Subsections (b) and (c) of section 1209  of  the  insurance  law,
subsection (b) as amended by chapter 26 of the laws of 2001, are amended
to read as follows:
  (b)  Such corporation shall have not less than [thirteen] SEVEN direc-
tors, [provided, however, a life insurance  corporation  satisfying  the
requirements  of  item  (v)  of  subparagraph  (B)  of paragraph five of
subsection (a) of section one thousand two hundred one of  this  article
shall  have  not less than nine directors, and such officers as shall be
provided for in its  charter  or  by-laws].  The  directors,  except  as
provided in section four thousand two hundred ten of this chapter, shall
be elected at the annual meetings of the members, and all except four of
the directors of such corporation, elected after the organization of the
corporation  is  completed  and  it has been licensed to issue insurance
policies, must be members of  the  corporation  or  officers  of  member
corporations.  At any time after the first annual meeting, the directors
may be divided into not exceeding three groups as nearly equal as possi-
ble, and thereafter the directors in one group only or their  successors
shall  be  elected  annually  as  provided  in the by-laws. The board of
directors of such corporation shall hold regular meetings at least  four
times in each calendar year. At least one of such meetings shall be held
within this state and the other meetings may be held elsewhere.
  (c)  The board of directors of such corporation shall elect such offi-
cers as are provided for in the by-laws. At least [two of the] ONE prin-
cipal [officers] OFFICER shall be [directors] A DIRECTOR, but the number
of officers and salaried employees who are directors shall at all  times
be  less  than  a quorum of the board of directors, as prescribed in the
charter or by-laws.
  S 5. This act shall take effect immediately.

co-Sponsors

2009-S3635A - Details

Laws Affected:: Amd §§1201, 1202 & 1209, Ins L

2009-S3635A - Summary

Relates to the incorporation of stocks and mutual insurance companies.

2009-S3635A - Sponsor Memo

                                 BILL NUMBER:  S3635A

 TITLE OF BILL :
An act to amend the insurance law, in relation to revising the
standards relating to the incorporation of stock or mutual insurance
companies


 PURPOSE OR GENERAL IDEA OF BILL :
To revise the standards relating to the incorporation of stock or
mutual insurance companies so that the incorporators of an insurance
corporation need only list their city and state of residence in
newspapers and the company charter. This bill would also reduce the
number of directors from thirteen to seven. The bill also removes the
requirement that not less than two directors be residents of New York
State. The bill would also reduce the number of officers who must be
directors from two to one.

 SUMMARY OF PROVISIONS :
This bill would amend Section 1201(a)(3) of the Insurance Law to
remove the requirement that the proposed incorporators of a New York
insurance corporation publish in a newspaper their residence address
and require, instead, that they only publish their city and state of
residence. The bill would also amend Section 1201(a)(5)(vii) to remove
the requirement that the residence address of the proposed
incorporators be contained in the corporate charter and require,

instead, that they only publish their city and state of residence.

In addition, Sections 1201(a)(5)(v), 1202(a)(2), and 1209(b) of the
Insurance Law would be amended to reduce the number of directors
necessary to incorporate a stock or mutual insurance company from
thirteen to seven. Section 1201(a)(5)(vi) would be amended to remove
the requirement that not less than two directors be residents of New
York State. The bill would also amend Section 1209(c) to reduce the
number of officers who must be a director from two to one.

 JUSTIFICATION :
The requirement that the incorporators of a new insurance corporation
in New York must publicize their home addresses has been a potential
impediment to the formation of new companies in the state. It is
understandable that these individuals would be uncomfortable with
disclosing their home addresses in the newspaper and it is not
essential for the public to know this information.  Rather, it appears
that publication of the city and state of residence would be
sufficient for this purpose.

In today's global economy, a smaller board of directors would allow
more companies to incorporate and respond to the rapidly changing
economy. Likewise, there does not appear to be a rationale for
requiring that at least two of the board members be New York State
residents.  Many insurers in New York are now global enterprises and,
given the increased demands for improved corporate governance being
placed upon financial services corporations, it does not seem
necessary to require that two directors be state residents. The
primary consideration for selecting members of a company's Board of
Directors should be to identify individuals with superior intelligence
and high values who have an understanding of the business at hand,
regardless of their location.

 PRIOR LEGISLATIVE HISTORY :

2008: A.8767, S.2085-A
2009: A.1005-A

 FISCAL IMPLICATIONS :
None.
 EFFECTIVE DATE :
This act will take effect immediately.

2009-S3635A - Bill Text download pdf

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

                                 3635--A

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             March 25, 2009
                               ___________

Introduced  by  Sens.  BRESLIN,  STACHOWSKI,  PARKER, MONSERRATE -- read
  twice and ordered printed, and when printed to  be  committed  to  the
  Committee  on Insurance -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the insurance law, in relation to revising the standards
  relating to the incorporation of stock or mutual insurance companies

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

  Section 1. Paragraph 3 of subsection (a) of section 1201 of the insur-
ance law is amended to read as follows:
  (3)  The proposed incorporators shall publish in such newspaper, twice
a week for three successive weeks or once  a  week  for  six  successive
weeks,  a  notice  of  intention to form such a corporation, stating its
proposed name, the kinds of insurance business  to  be  transacted,  the
names and CITY AND STATE OF residence [addresses] of the proposed incor-
porators,  the location of its principal office in this state, and, if a
stock corporation, the amount of its proposed initial capital.
  S 2. Items (v), (vi) and (vii) of subparagraph (B) of paragraph  5  of
subsection (a) of section 1201 of the insurance law, item (v) as amended
by  chapter  552 of the laws of 1996 and item (vi) as amended by chapter
532 of the laws of 2003, are amended to read as follows:
  (v) the number of directors, or that it shall be not less than a stat-
ed minimum nor more than a stated maximum. Except as provided in section
six thousand four hundred two of this chapter the  number  of  directors
shall  not be less than [thirteen, however, a life insurance corporation
with admitted assets of less than one and one-half billion dollars,  may
have  not  less  than  nine directors of which at least four must not be
officers  or  employees  of  the  company  or  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. The charter of such life insurance corpo-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09806-02-9

S. 3635--A                          2

ration that has less than thirteen, but at least nine,  directors  shall
provide that the number of directors shall be increased to not less than
thirteen within one year following the end of the calendar year in which
the  corporation  exceeded  one and one-half billion dollars in admitted
assets] SEVEN.  As used in this item, "number of  directors"  means  the
total number of directors which the corporation would have if there were
no vacancies;
  (vi)  the  times  and  manner  of electing directors and officers, the
manner of filling vacancies, and provision that each director  shall  be
at least eighteen years of age and that at all times a majority shall be
citizens and residents of the United States[, and that not less than two
shall be residents of this state];
  (vii)  the  names  and  [post  office]  CITY  AND  STATE  OF residence
[addresses] of the directors, who shall serve  until  the  first  annual
meeting of such corporation;
  S  3.  Paragraph  2 of subsection (a) of section 1202 of the insurance
law, as amended by chapter 802 of the laws of 1985, is amended  to  read
as follows:
  (2)  If  not  otherwise  fixed under this article, the number shall be
[thirteen] SEVEN but it may be increased or[, subject  to  item  (v)  of
subparagraph  (B)  of  paragraph  five  of subsection (a) of section one
thousand two hundred one of this article,] decreased by amendment of the
by-laws, or by action of the board, subject  to  the  following  limita-
tions:  (i)  if  the  board  is authorized by the by-laws to increase or
decrease the number of directors, the amendment shall require  the  vote
of  a majority of the entire board; [and] (ii) no decrease shall shorten
the term of any incumbent director; AND (III) NO DECREASE  SHALL  REDUCE
THE NUMBER OF DIRECTORS TO FEWER THAN SEVEN.
  S  4.  Subsections  (b)  and (c) of section 1209 of the insurance law,
subsection (b) as amended by chapter 26 of the laws of 2001, are amended
to read as follows:
  (b) Such corporation shall have not less than [thirteen] SEVEN  direc-
tors[,  provided,  however,  a life insurance corporation satisfying the
requirements of item (v)  of  subparagraph  (B)  of  paragraph  five  of
subsection  (a)  of section one thousand two hundred one of this article
shall have not less than nine directors, and such officers as  shall  be
provided  for  in  its  charter  or  by-laws].  The directors, except as
provided in section four thousand two hundred ten of this chapter, shall
be elected at the annual meetings of the members, and all except four of
the directors of such corporation, elected after the organization of the
corporation is completed and it has been  licensed  to  issue  insurance
policies,  must  be  members  of  the  corporation or officers of member
corporations. At any time after the first annual meeting, the  directors
may be divided into not exceeding three groups as nearly equal as possi-
ble,  and thereafter the directors in one group only or their successors
shall be elected annually as provided  in  the  by-laws.  The  board  of
directors  of such corporation shall hold regular meetings at least four
times in each calendar year. At least one of such meetings shall be held
within this state and the other meetings may be held elsewhere.
  (c) The board of directors of such corporation shall elect such  offi-
cers as are provided for in the by-laws. At least [two of the] ONE prin-
cipal [officers] OFFICER shall be [directors] A DIRECTOR, but the number
of  officers and salaried employees who are directors shall at all times
be less than a quorum of the board of directors, as  prescribed  in  the
charter or by-laws.
  S 5. This act shall take effect immediately.

co-Sponsors

2009-S3635B (ACTIVE) - Details

Laws Affected:: Amd §§1201, 1202 & 1209, Ins L

2009-S3635B (ACTIVE) - Summary

Relates to the incorporation of stocks and mutual insurance companies.

2009-S3635B (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S3635B

 TITLE OF BILL :
An act to amend the insurance law, in relation to revising the
standards relating to the incorporation of stock or mutual insurance
companies


 PURPOSE OR GENERAL IDEA OF BILL :
To revise the standards relating to the incorporation of stock or
mutual insurance companies so that the incorporators of an insurance
corporation need only list their city and state of residence in
newspapers and the company charter. This bill would also reduce the
number of directors from thirteen to seven. The bill also reduces the
number of directors who must be residents of New York State from two
to one. The bill would also reduce the number of officers who must be
directors from two to one.

 SUMMARY OF PROVISIONS :
This bill would amend Section 1201(a)(3) of the Insurance Law to
remove the requirement that the proposed incorporators of a New York
insurance corporation publish their city and state of residence. The
bill would also amend Section 1201(a)(5) (vii) to remove the
requirement that the residence address of the proposed incorporators
be contained in the corporate charter and require, instead, that they
only publish their city and state of residence.

In addition, Sections 1201(a)(5)(v), 1202(a)(2), and 1209(b) of the
Insurance Law would be amended to reduce the number of directors
necessary to incorporate a stock or mutual insurance company from
thirteen to seven. Section 1201(a)(5)(vi) would be amended to reduce
the number of directors who must be residents of New York State from
two to one.

 JUSTIFICATION :
The requirement that the incorporators of a new insurance corporation
in New York must publicize their home addresses has been a potential
impediment to the formation of new companies in the state. It is
understandable that these individuals would be uncomfortable with
disclosing their home addresses in the newspaper and it is not
essential for the public to know this information.  Rather, it appears
that publication of the city and state of residence would be
sufficient for this purpose.

In today's global economy, a smaller board of directors would allow
more companies to incorporate and respond to the rapidly changing
economy. Likewise, there does not appear to be a rationale for
requiring that at least two of the board members be New York State
residents.  Many insurers in New York are now global enterprises and,
given the increased demands for improved corporate governance being
placed upon financial services corporations, it does not seem
necessary to require that two directors be state residents. The
primary consideration for selecting members of a company's Board of
Directors should be to identify individuals with superior intelligence
and high values who have an understanding of the business at hand,
regardless of their location.

 PRIOR LEGISLATIVE HISTORY :
2008: A.8767, S.2085-A
2009: A.1005-A

 FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
This act will take effect immediately.

2009-S3635B (ACTIVE) - Bill Text download pdf

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

                                 3635--B
    Cal. No. 178

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             March 25, 2009
                               ___________

Introduced by Sens. BRESLIN, STACHOWSKI, PARKER, MONSERRATE, THOMPSON --
  read  twice  and  ordered printed, and when printed to be committed to
  the Committee on Insurance  --  committee  discharged,  bill  amended,
  ordered  reprinted  as  amended  and  recommitted to said committee --
  reported favorably from said committee, ordered to  first  and  second
  report,  ordered  to  a  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 revising the standards
  relating to the incorporation of stock or mutual insurance companies

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

  Section 1. Paragraph 3 of subsection (a) of section 1201 of the insur-
ance law is amended to read as follows:
  (3)  The proposed incorporators shall publish in such newspaper, twice
a week for three successive weeks or once  a  week  for  six  successive
weeks,  a  notice  of  intention to form such a corporation, stating its
proposed name, the kinds of insurance business  to  be  transacted,  the
names and CITY AND STATE OF residence [addresses] of the proposed incor-
porators,  the location of its principal office in this state, and, if a
stock corporation, the amount of its proposed initial capital.
  S 2. Items (v), (vi) and (vii) of subparagraph (B) of paragraph  5  of
subsection (a) of section 1201 of the insurance law, item (v) as amended
by  chapter  552 of the laws of 1996 and item (vi) as amended by chapter
532 of the laws of 2003, are amended to read as follows:
  (v) the number of directors, or that it shall be not less than a stat-
ed minimum nor more than a stated maximum. Except as provided in section
six thousand four hundred two of this chapter the  number  of  directors
shall  not be less than [thirteen, however, a life insurance corporation
with admitted assets of less than one and one-half billion dollars,  may
have  not  less  than  nine directors of which at least four must not be
officers  or  employees  of  the  company  or  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. The charter of such life insurance corpo-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09806-04-9

S. 3635--B                          2

ration that has less than thirteen, but at least nine,  directors  shall
provide that the number of directors shall be increased to not less than
thirteen within one year following the end of the calendar year in which
the  corporation  exceeded  one and one-half billion dollars in admitted
assets] SEVEN.  As used in this item, "number of  directors"  means  the
total number of directors which the corporation would have if there were
no vacancies;
  (vi)  the  times  and  manner  of electing directors and officers, the
manner of filling vacancies, and provision that each director  shall  be
at least eighteen years of age and that at all times a majority shall be
citizens  and  residents  of  the  United States, and that not less than
[two] ONE  shall be [residents] A RESIDENT of this state;
  (vii) the  names  and  [post  office]  CITY  AND  STATE  OF  residence
[addresses]  of  the  directors,  who shall serve until the first annual
meeting of such corporation;
  S 3. Paragraph 2 of subsection (a) of section 1202  of  the  insurance
law,  as  amended by chapter 802 of the laws of 1985, is amended to read
as follows:
  (2) If not otherwise fixed under this article,  the  number  shall  be
[thirteen]  SEVEN  but  it  may be increased or[, subject to item (v) of
subparagraph (B) of paragraph five of  subsection  (a)  of  section  one
thousand two hundred one of this article,] decreased by amendment of the
by-laws,  or  by  action  of the board, subject to the following limita-
tions: (i) if the board is authorized by  the  by-laws  to  increase  or
decrease  the  number of directors, the amendment shall require the vote
of a majority of the entire board; [and] (ii) no decrease shall  shorten
the  term  of any incumbent director; AND (III) NO DECREASE SHALL REDUCE
THE NUMBER OF DIRECTORS TO FEWER THAN SEVEN.
  S 4. Subsections (b) and (c) of section 1209  of  the  insurance  law,
subsection (b) as amended by chapter 26 of the laws of 2001, are amended
to read as follows:
  (b)  Such corporation shall have not less than [thirteen] SEVEN direc-
tors[, provided, however, a life insurance  corporation  satisfying  the
requirements  of  item  (v)  of  subparagraph  (B)  of paragraph five of
subsection (a) of section one thousand two hundred one of  this  article
shall  have  not less than nine directors, and such officers as shall be
provided for in its  charter  or  by-laws].  The  directors,  except  as
provided in section four thousand two hundred ten of this chapter, shall
be elected at the annual meetings of the members, and all except four of
the directors of such corporation, elected after the organization of the
corporation  is  completed  and  it has been licensed to issue insurance
policies, must be members of  the  corporation  or  officers  of  member
corporations.  At any time after the first annual meeting, the directors
may be divided into not exceeding three groups as nearly equal as possi-
ble, and thereafter the directors in one group only or their  successors
shall  be  elected  annually  as  provided  in the by-laws. The board of
directors of such corporation shall hold regular meetings at least  four
times in each calendar year. At least one of such meetings shall be held
within this state and the other meetings may be held elsewhere.
  (c)  The board of directors of such corporation shall elect such offi-
cers as are provided for in the by-laws. At least [two of the] ONE prin-
cipal [officers] OFFICER shall be [directors] A DIRECTOR, but the number
of officers and salaried employees who are directors shall at all  times
be  less  than  a quorum of the board of directors, as prescribed in the
charter or by-laws.
  S 5. This act shall take effect immediately.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Find your Senator and share your views on important issues.

Do you support this bill?

Senate Bill S3635

Signed By Governor

Sponsored By

Archive: Last Bill Status Via A1005 - Signed by Governor

Actions

Votes

Jul 16, 2009 - Floor Vote

Floor Vote: Jul 16, 2009

Bill Amendments

2009-S3635 - Details

2009-S3635 - Summary

2009-S3635 - Sponsor Memo

2009-S3635 - Bill Text download pdf

co-Sponsors

2009-S3635A - Details

2009-S3635A - Summary

2009-S3635A - Sponsor Memo

2009-S3635A - Bill Text download pdf

co-Sponsors

2009-S3635B (ACTIVE) - Details

2009-S3635B (ACTIVE) - Summary

2009-S3635B (ACTIVE) - Sponsor Memo

2009-S3635B (ACTIVE) - Bill Text download pdf

Comments

Do you support this bill?

Get Status Alerts for 2009-S3635

Senate Bill S3635

Signed By Governor

Share this bill

Sponsored By

Archive: Last Bill Status Via A1005 - Signed by Governor

Actions

Votes

Bill Amendments

2009-S3635 - Details

2009-S3635 - Summary

2009-S3635 - Sponsor Memo

2009-S3635 - Bill Text download pdf

co-Sponsors

2009-S3635A - Details

2009-S3635A - Summary

2009-S3635A - Sponsor Memo

2009-S3635A - Bill Text download pdf

co-Sponsors

2009-S3635B (ACTIVE) - Details

2009-S3635B (ACTIVE) - Summary

2009-S3635B (ACTIVE) - Sponsor Memo

2009-S3635B (ACTIVE) - Bill Text download pdf

Comments