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

                                  6855

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                             April 22, 2013
                               ___________

Introduced  by  M.  of  A.  SILVER, LAVINE, MORELLE, FARRELL, WEINSTEIN,
  CYMBROWITZ, GOLDFEDER, ROZIC, SIMANOWITZ, HIKIND, JACOBS, TITUS, SWEE-
  NEY, GLICK, ENGLEBRIGHT, PERRY, DINOWITZ, SCARBOROUGH, COLTON, CUSICK,
  BENEDETTO, MAISEL, GABRYSZAK, JAFFEE, SCHIMEL, TITONE, KELLNER,  MILL-
  ER,  THIELE, MOYA, BRINDISI, OTIS, ROSA -- Multi-Sponsored by -- M. of
  A. ABINANTI, ARROYO, BRENNAN, BRONSON, BUCHWALD,  CLARK,  FAHY,  GOTT-
  FRIED,   MAGEE,   MARKEY,  MAYER,  McDONALD,  MOSLEY,  NOLAN,  PAULIN,
  PEOPLES-STOKES, ROBINSON, RODRIGUEZ,  ROSENTHAL,  SIMOTAS,  SKARTADOS,
  WEISENBERG,  ZEBROWSKI  --  read once and referred 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
York consumers.
  (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
terrorism.
  (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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10320-02-3

              

A. 6855                             2

violations of human rights under which its own citizens are required  to
live.
  S 2. The insurance law is amended by adding a new section 1415 to read
as follows:
  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
APPLY:
  (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
ASSETS.
  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
APPLY:
  (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.