|Assembly Actions - Lowercase
Senate Actions - UPPERCASE
|Jan 04, 2012||referred to insurance|
|Mar 17, 2011||referred to insurance|
senate Bill S4093
Archive: Last Bill Status - In Senate Committee
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
S4093 - Details
S4093 - Sponsor Memo
BILL NUMBER:S4093 TITLE OF BILL: An act to amend the insurance law, in relation to qualified trusts and qualified reserve credits; and providing for the repeal of such provisions upon expiration thereof PURPOSE: This bill would allow the acquisition and management of investments by financial guaranty insurance corporations through certain dedicated trusts. It would make it clear that the financial guaranty insurance corporation may carry the net equity of such a trust as an asset on its statutory balance sheet. It would also allow the net value of a qualified trust to be counted among the specific assets that financial guaranty insurance corporations must maintain with respect to unearned premium reserves, loss reserves and loss adjustment expense reserves and that certain dedicated cash flows from the trust may be counted against contingency reserves. SUMMARY OF PROVISIONS: Section 1 of the bill allows qualified reserve credits to reduce the aggregate net liability of a financial guaranty insurance corporation when determining the limits of the aggregate risk that it may assume.
S4093 - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 4093 2011-2012 Regular Sessions I N S E N A T E March 17, 2011 ___________ Introduced by Sen. MARTINS -- 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 qualified trusts and qualified reserve credits; and providing for the repeal of such provisions upon expiration thereof THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subsection (d) of section 6901 of the insurance law, as added by chapter 48 of the laws of 1989, is amended to read as follows: (d) "Aggregate net liability" means the aggregate amount of insured unpaid principal, interest and other monetary payments, if any, of guar- antied obligations insured or assumed, less reinsurance ceded [and less], collateral AND QUALIFIED RESERVE CREDITS. S 2. Section 6901 of the insurance law is amended by adding two new subsections (t) and (u) to read as follows: (T) "QUALIFIED TRUST" MEANS A TRUST THAT IS ENGAGED OR ORGANIZED TO ENGAGE EXCLUSIVELY IN THE ACQUISITION AND MANAGEMENT OF INVESTMENTS AVAILABLE FIRST FOR THE PAYMENT OF LOSSES AND CLAIMS OF A SINGLE FINAN- CIAL GUARANTY INSURANCE CORPORATION. (U) "QUALIFIED RESERVE CREDIT" MEANS, WITH RESPECT TO INVESTMENTS IN WHICH THE INTERESTS OF THE QUALIFIED TRUST ARE LIMITED TO RIGHTS TO PRINCIPAL, INTEREST OR OTHER PAYMENTS FROM SUCH INVESTMENTS, THE PRESENT VALUE OF AMOUNTS RECEIVABLE BY THE QUALIFIED TRUST FROM INVESTMENTS GIVEN A DESIGNATION OF ONE BY THE SECURITIES VALUATION OFFICE OF THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS. S 3. Section 6902 of the insurance law is amended by adding three new subsections (c), (d) and (e) to read as follows: (C) IN DETERMINING THE FINANCIAL CONDITION OF A DOMESTIC OR FOREIGN FINANCIAL GUARANTY INSURANCE CORPORATION FOR THE PURPOSES OF THIS CHAP- TER, IN ADDITION TO THE ASSETS SET FORTH IN SECTION ONE THOUSAND THREE HUNDRED ONE OF THIS CHAPTER, THERE SHALL BE ALLOWED AS AN ADMITTED ASSET EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05170-01-1
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