Assembly Bill A3257

2011-2012 Legislative Session

Requires the calculation of policyholder positions for mono line mortgage guaranty insurance companies

download bill text pdf

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Archive: Last Bill Status - In Assembly Committee

  • 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

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2011-A3257 (ACTIVE) - Details

Current Committee:
Assembly Insurance
Law Section:
Insurance Law
Laws Affected:
Amd ยง6502, Ins L
Versions Introduced in 2009-2010 Legislative Session:
A4830

2011-A3257 (ACTIVE) - Summary

Requires the calculation of policyholder positions for mono line mortgage guaranty insurance companies; defines "minimum policyholders positions" and prescribes other technical requirements for the unique contingency reserve required for mortgage guaranty insurers.

2011-A3257 (ACTIVE) - Bill Text download pdf 

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

                                  3257

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            January 24, 2011
                               ___________

Introduced  by M. of A. MORELLE -- read once and referred to the Commit-
  tee on Insurance

AN ACT to amend the insurance law,  in  relation  to  mortgage  guaranty
  insurance contingency reserves

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

  Section 1. Paragraph 2 of subsection (a) of section 6502 of the insur-
ance law is amended to read as follows:
  (2) it establishes a contingency reserve out of  net  premiums  (gross
premiums less premiums returned to policyholders) remaining after estab-
lishing  the  unearned  premium reserve. The company shall contribute to
the contingency reserve an amount equal to fifty percent of such remain-
ing earned premiums.   Contributions to  the  contingency  reserve  made
during  each  calendar  year  shall  be  maintained  for a period of one
hundred and twenty months, except that withdrawals may be  made  by  the
company  with  the prior approval of the superintendent: (A) in any year
in which the actual incurred losses exceed thirty-five  percent  of  the
corresponding  earned  premiums  OR  (B)  OF SUCH OTHER APPROVED AMOUNT,
PROVIDED THE COMPANY CONTINUES TO MEET THE OTHER  REQUIREMENTS  OF  THIS
SECTION,  AND AFTER CONSIDERATION BY THE SUPERINTENDENT OF THE FINANCIAL
CONDITION OF THE COMPANY, LOSS DEVELOPMENT AND TRENDS, AS  WELL  AS  ANY
OTHER  CIRCUMSTANCES  THE  SUPERINTENDENT DEEMS APPROPRIATE. THE COMPANY
SHALL SUBMIT  DOCUMENTATION  CLEARLY  PROVIDING  JUSTIFICATION  FOR  THE
PROPOSED  WITHDRAWAL  OF CONTINGENCY RESERVES UNDER THIS PARAGRAPH.  The
unearned premium reserve shall be computed as required  by  section  one
thousand  three  hundred  five  of  this chapter except that on policies
covering a risk period of more than one year it  shall  be  computed  in
accordance with standards promulgated by the superintendent; and
  S 2.  This act shall take effect immediately; provided that the super-
intendent of insurance is authorized to promulgate any and all rules and
regulations,  on  an emergency basis, and take any other measures neces-
sary to implement this act on its effective date.

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

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