senate Bill S7306A

Signed By Governor
2011-2012 Legislative Session

Relates to derivative transactions and derivative instruments

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Archive: Last Bill Status Via A10532 - Signed by Governor


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

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Actions

view actions (14)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Aug 17, 2012 signed chap.398
Aug 06, 2012 delivered to governor
Jun 20, 2012 returned to assembly
passed senate
3rd reading cal.998
substituted for s7306b
Jun 20, 2012 substituted by a10532a
Jun 14, 2012 amended on third reading 7306b
Jun 06, 2012 advanced to third reading
Jun 05, 2012 2nd report cal.
Jun 04, 2012 1st report cal.998
May 29, 2012 print number 7306a
amend and recommit to insurance
May 02, 2012 referred to insurance

S7306 - Details

See Assembly Version of this Bill:
A10532
Law Section:
Insurance Law
Laws Affected:
Amd §§1401 & 1410, Ins L

S7306 - Summary

Relates to derivative transactions and over the counter derivative instruments.

S7306 - Sponsor Memo

S7306 - Bill Text download pdf

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

                                  7306

                            I N  S E N A T E

                               May 2, 2012
                               ___________

Introduced  by  Sen.  SEWARD -- 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  derivative  trans-
  actions and derivative instruments

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

  Section 1. Subsection (a) of section 1401  of  the  insurance  law  is
amended by adding three new paragraphs 19, 20 and 21 to read as follows:
  (19)  "OVER  THE  COUNTER  DERIVATIVE  INSTRUMENT"  MEANS A DERIVATIVE
INSTRUMENT WHICH IS AUTHORIZED UNDER THIS CHAPTER OTHER THAN  A  DERIVA-
TIVE INSTRUMENT (A) CLEARED THROUGH A UNITED STATES OR FOREIGN CLEARING-
HOUSE  OR  (B)  TRADED ON OR THROUGH A UNITED STATES OR FOREIGN EXCHANGE
PROVIDING CLEARING SERVICES.
  (20) "CLEARINGHOUSE" MEANS A DERIVATIVES CLEARING  ORGANIZATION  WHICH
ACTS  AS  A MEDIUM FOR CLEARING, OR EFFECTING SETTLEMENTS OF, DERIVATIVE
INSTRUMENTS SUCH THAT THE CLEARINGHOUSE  IS  SUBSTITUTED  AS  THE  OTHER
PARTY TO THE DERIVATIVE TRANSACTION.
  (21)  "MASTER  AGREEMENT" MEANS A WRITTEN MASTER AGREEMENT RELATING TO
DERIVATIVES TRANSACTIONS THAT PROVIDES FOR NETTING OF PAYMENTS  OWED  BY
THE RESPECTIVE PARTIES, AND THE DOMICILIARY JURISDICTION OF THE COUNTER-
PARTY  IS  EITHER  WITHIN  THE UNITED STATES OR IF NOT WITHIN THE UNTIED
STATES, WITHIN A FOREIGN (NOT UNITED STATES) JURISDICTION DEEMED BY  THE
SECURITIES  VALUATION  OFFICE  OF  THE NATIONAL ASSOCIATION OF INSURANCE
COMMISSIONERS, OR ANY SUCCESSOR OFFICE ESTABLISHED BY THE NATIONAL ASSO-
CIATION OF INSURANCE COMMISSIONERS, AS ELIGIBLE FOR NETTING.
  S 2. Subsection (f) of section 1410 of the insurance law, as added  by
chapter 650 of the laws of 1998, is amended to read as follows:
  (f)(1) The counterparty exposure under [a] AN OVER THE COUNTER deriva-
tive instrument entered into by an insurer authorized to engage in tran-
sactions pursuant to this section shall be deemed to be an obligation of
the institution to which the insurer is exposed to credit risk and shall
be included in determining compliance with any single or aggregate quan-
titative  limitation  on investments made by an insurer under this chap-
ter.

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

S7306A - Details

See Assembly Version of this Bill:
A10532
Law Section:
Insurance Law
Laws Affected:
Amd §§1401 & 1410, Ins L

S7306A - Summary

Relates to derivative transactions and over the counter derivative instruments.

S7306A - Sponsor Memo

S7306A - Bill Text download pdf

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

                                 7306--A

                            I N  S E N A T E

                               May 2, 2012
                               ___________

Introduced  by  Sen.  SEWARD -- 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 derivative trans-
  actions and derivative instruments

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

  Section  1.  Subsection  (a)  of  section 1401 of the insurance law is
amended by adding three new paragraphs 19, 20 and 21 to read as follows:
  (19) "OVER THE  COUNTER  DERIVATIVE  INSTRUMENT"  MEANS  A  DERIVATIVE
INSTRUMENT  WHICH  IS AUTHORIZED UNDER THIS CHAPTER OTHER THAN A DERIVA-
TIVE INSTRUMENT (A) CLEARED THROUGH A UNITED STATES OR FOREIGN CLEARING-
HOUSE OR (B) TRADED ON OR THROUGH A UNITED STATES  OR  FOREIGN  EXCHANGE
PROVIDING CLEARING SERVICES.
  (20)  "CLEARINGHOUSE"  MEANS A DERIVATIVES CLEARING ORGANIZATION WHICH
ACTS AS A MEDIUM FOR CLEARING, OR EFFECTING SETTLEMENTS  OF,  DERIVATIVE
INSTRUMENTS  SUCH  THAT  THE  CLEARINGHOUSE  IS SUBSTITUTED AS THE OTHER
PARTY TO THE DERIVATIVE TRANSACTION.
  (21) "MASTER AGREEMENT" MEANS A WRITTEN MASTER AGREEMENT  RELATING  TO
DERIVATIVES  TRANSACTIONS  THAT PROVIDES FOR NETTING OF PAYMENTS OWED BY
THE RESPECTIVE PARTIES, AND THE DOMICILIARY JURISDICTION OF THE COUNTER-
PARTY IS EITHER WITHIN THE UNITED STATES OR IF  NOT  WITHIN  THE  UNITED
STATES,  WITHIN A FOREIGN (NOT UNITED STATES) JURISDICTION DEEMED BY THE
SECURITIES VALUATION OFFICE OF THE  NATIONAL  ASSOCIATION  OF  INSURANCE
COMMISSIONERS, OR ANY SUCCESSOR OFFICE ESTABLISHED BY THE NATIONAL ASSO-
CIATION OF INSURANCE COMMISSIONERS, AS ELIGIBLE FOR NETTING.
  S  2. Subsection (f) of section 1410 of the insurance law, as added by
chapter 650 of the laws of 1998, is amended to read as follows:
  (f)(1) The counterparty exposure under [a] AN OVER THE COUNTER deriva-
tive instrument entered into by an insurer authorized to engage in tran-
sactions pursuant to this section shall be deemed to be an obligation of
the institution to which the insurer is exposed to credit risk and shall
be included in determining compliance with any single or aggregate quan-

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

S7306B (ACTIVE) - Details

See Assembly Version of this Bill:
A10532
Law Section:
Insurance Law
Laws Affected:
Amd §§1401 & 1410, Ins L

S7306B (ACTIVE) - Summary

Relates to derivative transactions and over the counter derivative instruments.

S7306B (ACTIVE) - Sponsor Memo

S7306B (ACTIVE) - Bill Text download pdf

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

                                 7306--B
    Cal. No. 998

                            I N  S E N A T E

                               May 2, 2012
                               ___________

Introduced  by  Sen.  SEWARD -- 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 derivative trans-
  actions and derivative instruments

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

  Section  1.    Subsection (f) of section 1410 of the insurance law, as
added by chapter 650 of the laws of 1998, is amended to read as follows:
  (f)(1) The counterparty exposure under [a] AN OVER THE COUNTER deriva-
tive instrument entered into by an insurer authorized to engage in tran-
sactions pursuant to this section shall be deemed to be an obligation of
the institution to which the insurer is exposed to credit risk and shall
be included in determining compliance with any single or aggregate quan-
titative limitation on investments made by an insurer under  this  chap-
ter.
  (2) Notwithstanding any single or aggregate quantitative limitation on
investments  made  by an insurer under this chapter, AN INSURER MAY ONLY
TRANSACT AN OVER THE COUNTER DERIVATIVE INSTRUMENT WITH:
  (A) A QUALIFIED COUNTERPARTY; OR
  (B) A COUNTERPARTY OTHER THAN A  "QUALIFIED  COUNTERPARTY"  IF,  AFTER
GIVING  EFFECT  TO THAT TRANSACTION, the aggregate counterparty exposure
OF THE INSURER under one or more OVER  THE  COUNTER  derivative  [trans-
actions] INSTRUMENTS to:
  [(A)  any  single counterparty, other than a "qualified counterparty",
shall be limited to one] (I) THAT NON-QUALIFIED  COUNTERPARTY  DOES  NOT
EXCEED ONE percent of [an] THE insurer's admitted assets; and
  [(B)]  (II)  all  counterparties, other than qualified counterparties,
[are limited to] DOES NOT EXCEED three percent  of  [an]  THE  insurer's
admitted assets.
  (3) For purposes of this section:

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

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