|Assembly Actions - Lowercase
Senate Actions - UPPERCASE
|Dec 17, 2014||approval memo.26|
|Dec 05, 2014||delivered to governor|
|Jun 19, 2014||returned to senate|
ordered to third reading rules cal.492
substituted for a9793
|Jun 17, 2014||referred to insurance|
delivered to assembly
|Jun 02, 2014||advanced to third reading|
|May 29, 2014||2nd report cal.|
|May 28, 2014||1st report cal.969|
|May 14, 2014||referred to insurance|
senate Bill S7353Signed By Governor
Archive: Last Bill Status - Signed by Governor
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed by Governor
S7353 - Details
S7353 - Summary
Relates to expenses incurred during the modernization of mutual and cooperative insurance companies' information systems technology.
S7353 - Sponsor Memo
BILL NUMBER:S7353 TITLE OF BILL: An act to amend the insurance law, in relation to encouraging modernization of mutual and cooperative insurance companies' information systems technology PURPOSE: Domestic mutual and co-operative property/casualty insurance companies are bound by New York law to hold their management expenses below a certain percentage of their net written premium income. These caps can inhibit companies from making necessary upgrades and improvements to their computer systems and software. This bill is designed to permit both mutuals and cooperative property/casualty insurers to make such important expenditures by temporarily raising the management expenses cap when computer upgrade expenses result in exceeding such cap. An additional protection against excessive costs being incurred for such upgrades is contained in the bill by providing that in no event shall the cap be raised by more than 5 percentage points. Further, insurers are prohibited from increasing premiums solely as a result of the management expenses cap being exceeded. SUMMARY OF PROVISIONS: Section 1. Amend Insurance Law section 4110(a) to temporarily raise the management expenses limit for domestic mutual property/casualty insur-
S7353 - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 7353 I N S E N A T E May 14, 2014 ___________ 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 encouraging moderniza- tion of mutual and cooperative insurance companies' information systems technology THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subsection (a) of section 4110 of the insurance law, as amended by chapter 527 of the laws of 2006, is amended to read as follows: (a) No domestic mutual property/casualty insurance company licensed to write a kind of insurance specified in paragraph seven, eight, nine, ten, eleven, thirteen, fourteen, fifteen, sixteen or seventeen of subsection (a) of section one thousand one hundred thirteen of this chapter shall expend in any one calendar year for management expenses a greater amount than thirty percent of the sum of its net premium income and seventy-five percent of its investment income for such year; provided that any insurer whose principal line of business is medical malpractice liability insurance or any insurer who is the subject of a proceeding pursuant to article seventy-four of this chapter shall not expend in any one calendar year for management expenses, a greater amount than thirty percent of its net premium income for such year. Management expenses shall be held to include all expenses of the company except expenses incurred in the investigation, adjustment and settlement of claims, taxes, fees and expenses of examination, and taxes, repairs and expenses on real estate. In applying the provisions of this section the net premium income of, and expenses of, boiler and machinery insur- ance or elevator insurance shall not be included. IN THE EVENT EXPENSES INCURRED IN MAKING A NEW SYSTEM UPGRADE RESULT IN THIS SUBSECTION'S MANAGEMENT EXPENSES LIMIT BEING EXCEEDED, THEN THE INSURER SHALL INFORM THE SUPERINTENDENT SIXTY DAYS IN ADVANCE OF THE EXPENSE LIMIT BEING EXCEEDED. SUBJECT TO APPROVAL BY THE SUPERINTENDENT, THE LIMIT SHALL BE TEMPORARILY RAISED TO THE AMOUNT NECESSARY TO ENCOMPASS THE AFORESTATED NEW SYSTEM UPGRADE, PROVIDED THAT IN NO EVENT SHALL THE LIMIT BE RAISED EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted.
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