senate Bill S3543

2013-2014 Legislative Session

Relates to the redomestication of insurance companies

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Archive: Last Bill Status - In Committee


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to insurance
Feb 05, 2013 referred to insurance

S3543 - Bill Details

See Assembly Version of this Bill:
A6326
Current Committee:
Law Section:
Insurance Law
Laws Affected:
Amd §7120, Ins L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S3366, A5859, A8899
2009-2010: S7640, A10481

S3543 - Bill Texts

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Relates to the redomestication of insurance companies.

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BILL NUMBER:S3543

TITLE OF BILL: An act to amend the insurance law, in relation to the
redomestication of insurance companies

PURPOSE: To provide for the more efficient regulation of insurance enti-
ties by more closely conforming New York law governing the redomestica-
tion of insurance companies to the National Association of Insurance
Commissioners (NAIC) Redomestication Model Act.

SUMMARY OF PROVISIONS: This bill would amend § 7120 to the Insurance Law
by adding a new subsection (c) and subsection (h) to more closely
conform New York Jaw governing the redomestication of insurance compa-
nies to the NAIC Redomestication Model Bill. Specifically, this bill
would include provisions governing the redomestication of a domestic
insurance company to another state upon the approval of the Superinten-
dent of Insurance. Upon approval of redomestication by the Superinten-
dent, the transferring company would be authorized to transact business
in New York State as a foreign company, provided that the insurer meets
all of the requirements for operation as a foreign company Such company
could continue to utilize policy forms previously approved by the Super-
intendent for their use as a domestic insurer, with the proper endorse-
ments

EXISTING LAW: Currently, § 7120 only contains the provisions of the NAIC
Model relating to the transfer to this state of the corporate domicile
of an authorized foreign company

JUSTIFICATION: This bill will improve the efficiency of the regulation
and oversight of affiliated groups of insurance companies domiciled in
multiple states and will help to preserve the continuation of state
regulation of insurance. Forty-one states have adopted a version of the
NAIC Redomestication Model Act, which provides for a redomestication
process which is efficient, effective and not unduly cumbersome New York
State has not adopted the provisions of the Model Act relating to the
transfer of a domestic insurer to another state and, thus, under current
New York law, the process for consolidating affiliates is a very diffi-
cult, time consuming and cumbersome one By adopting the balance of the
NAIC Redomestication Model Bill. this legislation will also further
uniformity among states relative to the regulation of insurance compa-
nies and would make the current state-based system for the regulation of
insurance companies more efficient. As the threat of the federal regu-
lation of the insurance industry continues to loom, it is important that
states demonstrate their ability to work together and adopt uniform laws
where such laws would provide for the more effective regulation of
insurance companies. The enactment of this legislation would further
this goal.

LEGISLATIVE HISTORY: S.3366 of 2011-12

FISCAL IMPLICATIONS: None

EFFECTIVE DATE: Immediately

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

                                  3543

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 5, 2013
                               ___________

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 the redomestication of
  insurance companies

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

  Section 1. Section 7120 of the insurance law, as amended by chapter 48
of the laws of 2009, is amended to read as follows:
  S  7120.  Redomestication  of [foreign] insurance companies. (a) Defi-
nitions.  In this section:
  (1) "Redomestication" means the transfer to this state of  the  corpo-
rate domicile of an authorized foreign company OR THE TRANSFER FROM THIS
STATE  OF  THE CORPORATE DOMICILE OF A DOMESTIC COMPANY, as provided for
in this section.
  (2) "Transferring company"  means  any  authorized  [foreign]  company
seeking redomestication.
  (b) A transferring company TRANSFERRING TO THIS STATE shall:
  (1)  file  with  the  superintendent  a  certificate  in  such form as
prescribed by the superintendent signed  by  the  insurance  supervisory
official  of  the  state  where  such  transferring company is domiciled
approving the proposed redomestication and confirming that upon redomes-
tication the transferring company shall no longer be subject as a domes-
tic company to the requirements of its current state of domicile;
  (2) comply with the applicable requirements of this chapter  regarding
the organization and licensing of a domestic company of the same type;
  (3)  demonstrate  to  the satisfaction of the superintendent that upon
redomestication, the transferring company will be in compliance with the
requirements of this chapter and any regulations promulgated  thereunder
applicable to a domestic company of the same type;
  (4)  submit  to the superintendent all documents and filings necessary
to comply with paragraphs two and three of this subsection; and

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08120-01-3

S. 3543                             2

  (5) submit new policy forms to the superintendent for use after  redo-
mestication, if so ordered by the superintendent, or use existing policy
forms with appropriate endorsements if allowed by, and under such condi-
tions as approved by, the superintendent.
  (c) A TRANSFERRING COMPANY TRANSFERRING FROM THIS STATE:
  (1)  UPON THE APPROVAL OF THE SUPERINTENDENT, TRANSFER ITS DOMICILE TO
ANY OTHER STATE IN WHICH IT IS ADMITTED  TO  TRANSACT  THE  BUSINESS  OF
INSURANCE,  AND  UPON  SUCH  A  TRANSFER IT SHALL CEASE TO BE A DOMESTIC
COMPANY, AND SHALL BE AUTHORIZED IN  THIS  STATE,  IF  QUALIFIED,  AS  A
FOREIGN  INSURER.   THE SUPERINTENDENT SHALL APPROVE THE TRANSFER UNLESS
HE OR SHE DETERMINES THE TRANSFER IS NOT IN THE INTEREST OF THE  POLICY-
HOLDERS OF THIS STATE; AND
  (2)  MAY CONTINUE ISSUING POLICY FORMS APPROVED BEFORE REDOMESTICATION
PURSUANT TO SECTION THREE THOUSAND TWO HUNDRED ONE OF THIS CHAPTER  WITH
SUCH  ENDORSEMENT, IF ANY, AS THE SUPERINTENDENT DETERMINES IS NEEDED TO
REFLECT THE REDOMESTICATION.
  (D) After the transferring company has complied with the provisions of
this section, the superintendent may, in  accordance  with  section  one
thousand  one  hundred  two  of  this chapter issue a new license to the
transferring company to reflect the change in  its  state  of  corporate
domicile.  The  duration of its license shall be governed by section one
thousand one hundred three of this chapter. Upon issuance  of  such  new
license  the redomestication shall become effective and the transferring
company  shall  be  a  domestic  company  OR  A  FOREIGN   COMPANY,   AS
APPROPRIATE.
  [(d)] (E) Simultaneous with the redomestication taking effect:
  (1) all materials and documents that were submitted to the superinten-
dent  by  the  transferring company pursuant to the requirements of this
section shall be filed in the office of the  superintendent  SUBJECT  TO
SUBSECTION (H) OF THIS SECTION; and
  (2)  FOR A TRANSFERRING COMPANY TRANSFERRING TO THIS STATE, the super-
intendent shall, in accordance with section one thousand two hundred one
or other applicable provisions of this chapter issue to  the  company  a
certified  copy  of its new declaration and charter and a certificate of
incorporation. The new charter  of  the  company  may  provide  for  the
continuation  of the corporate existence of the transferring company and
in such case the original date  of  incorporation  of  the  transferring
company shall be the date of incorporation of the new domestic company.
  [(e)]  (F)  All  outstanding  insurance  policies  and contracts shall
remain in full force and effect with no change and need not be  endorsed
as  to  the  new name of the company, if any, or its new location unless
ordered by the superintendent.
  [(f)] (G) All agents' appointments  and  licenses,  rates,  and  other
items that the superintendent allows, existing at the time of redomesti-
cation,  shall  continue  in  full  force  and effect in accordance with
applicable provisions of this chapter.
  (H) THE SUPERINTENDENT SHALL KEEP THE CONTENTS OF ANY REPORT OR INFOR-
MATION THE SUPERINTENDENT REQUIRES PURSUANT TO THIS SECTION, AND THAT IS
NOT OTHERWISE REQUIRED TO BE SET FORTH IN A PUBLICLY AVAILABLE REPORT OR
FILING, CONFIDENTIAL IN ACCORDANCE WITH THE PROVISIONS OF SUBSECTION (C)
OF SECTION ONE THOUSAND FIVE HUNDRED FOUR OF THIS CHAPTER.
  S 2. This act shall take effect immediately.

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