S T A T E O F N E W Y O R K
2013-2014 Regular Sessions
I N S E N A T E
May 8, 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 investments in foreign
states sponsoring terrorism
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The legislature finds and declares all of the following:
(1) The Federal Securities and Exchange Commission has determined that
investments in foreign states sponsoring terrorism, such as Iran, that
are subject to sanctions by the United States, may materially harm the
share value of foreign companies. Shares in these foreign companies may
be held in the portfolio of insurance companies issuing policies to New
(2) Publicly traded companies in the United States are substantially
restricted in doing business in or with foreign states, such as Iran,
that the United States Department of State has identified as sponsoring
(3) Identifying persons with investments in foreign states, such as
Iran, that sponsor terrorism and ensuring that those investments are
financially sound is an important public policy priority.
(4) It is the government of Iran, and not the people of Iran, that is
responsible for Iran's support of terrorism and that commits egregious
violations of human rights under which its own citizens are required to
S 2. The insurance law is amended by adding a new section 1415 to read
S 1415. INVESTMENTS OF DOMESTIC INSURERS IN PERSONS INCLUDED ON LIST
OF PERSONS ENGAGED IN INVESTMENT ACTIVITIES IN IRAN TREATED AS NONADMIT-
TED ASSETS. 1. AS USED IN THIS SECTION, THE FOLLOWING DEFINITIONS SHALL
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
S. 5083 2
(A) "IRAN" SHALL HAVE THE SAME DEFINITION AS USED IN SECTION ONE
HUNDRED SIXTY-FIVE-A OF THE STATE FINANCE LAW.
(B) "PERSON" SHALL HAVE THE SAME DEFINITION AS USED IN SECTION ONE
HUNDRED SIXTY-FIVE-A OF THE STATE FINANCE LAW.
(C) "INVESTMENT" SHALL MEAN ANY INVESTMENT PERMITTED UNDER SECTION
FOURTEEN HUNDRED FOUR OR FOURTEEN HUNDRED FIVE OF THIS ARTICLE.
2. INVESTMENTS BY A DOMESTIC INSURER IN PERSONS WHICH ARE INCLUDED ON
THE LIST OF PERSONS CREATED BY THE OFFICE OF GENERAL SERVICES PURSUANT
TO PARAGRAPH (B) OF SUBDIVISION THREE OF SECTION ONE HUNDRED
SIXTY-FIVE-A OF THE STATE FINANCE LAW SHALL BE TREATED AS NONADMITTED
3. ON OR BEFORE DECEMBER THIRTIETH, TWO THOUSAND THIRTEEN, AND ANNUAL-
LY THEREAFTER, THE INSURER SHALL DETERMINE WHAT INVESTMENTS IT HAD IN
THE PAST CALENDAR YEAR, INCLUDING ANY TRANSFERS OR OTHER TRANSACTIONS,
IN PERSONS WHICH ARE INCLUDED ON THE LIST OF PERSONS CREATED BY THE
OFFICE OF GENERAL SERVICES PURSUANT TO PARAGRAPH (B) OF SUBDIVISION
THREE OF SECTION ONE HUNDRED SIXTY-FIVE-A OF THE STATE FINANCE LAW.
4. ON MARCH FIRST, TWO THOUSAND FOURTEEN, AND ANNUALLY THEREAFTER, THE
INSURER SHALL PROVIDE THE DEPARTMENT WITH A LIST OF INVESTMENTS IT HAD
IN THE PAST CALENDAR YEAR, INCLUDING ANY TRANSFERS OR OTHER TRANS-
ACTIONS, IN PERSONS INCLUDED ON THE LIST OF PERSONS CREATED BY THE
OFFICE OF GENERAL SERVICES DESCRIBED IN SUBDIVISION THREE OF THIS
SECTION, INCLUDING, BUT NOT LIMITED TO, THE ISSUER, BY NAME, OF ALL THE
STOCK, BONDS, SECURITIES, AND OTHER EVIDENCE OF INDEBTEDNESS.
5. THIS SECTION SHALL CEASE TO BE OPERATIVE IF BOTH OF THE FOLLOWING
(A) IRAN IS REMOVED FROM THE UNITED STATES DEPARTMENT OF STATE'S LIST
OF COUNTRIES THAT HAVE BEEN DETERMINED TO REPEATEDLY PROVIDE SUPPORT FOR
ACTS OF INTERNATIONAL TERRORISM.
(B) PURSUANT TO THE APPROPRIATE FEDERAL STATUTE, THE PRESIDENT OF THE
UNITED STATES DETERMINES AND CERTIFIES TO THE APPROPRIATE COMMITTEE OF
THE CONGRESS OF THE UNITED STATES THAT IRAN HAS CEASED ITS EFFORTS TO
DESIGN, DEVELOP, MANUFACTURE, OR ACQUIRE A NUCLEAR EXPLOSIVE DEVICE OR
RELATED MATERIALS AND TECHNOLOGY.
S 3. If any clause, sentence, paragraph, section or part of this act
shall be adjudged by any court of competent jurisdiction to be invalid,
such judgment shall not affect, impair or invalidate the remainder ther-
eof, but shall be confined in its operation to the clause, sentence,
paragraph, section or part thereof directly involved in the controversy
in which such judgment shall have been rendered.
S 4. This act shall take effect on the ninetieth day after it shall
have become a law; provided, however, that effective immediately, the
addition, amendment, and/or repeal of any rule or regulation necessary
for the implementation of this act on its effective date are authorized
and directed to be made and completed on or before such effective date.