S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6781
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 20, 2019
                                ___________
 
 Introduced  by M. of A. PERRY -- read once and referred to the Committee
   on Insurance
 
 AN ACT to amend the insurance law, in relation  to  enacting  the  small
   insurer protection act
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. This act shall be known and may  be  cited  as  "the  small
 insurer protection act".
   §  2.  Legislative  intent.  The  legislature intends to protect small
 insurance companies that write commercial  automobile  insurance  within
 New  York state, to encourage new entrants into the insurance market and
 novel insurance products, and to foster competition in the  marketplace,
 which will benefit policyholders and the public.
   §  3.  The  insurance law is amended by adding a new section 7402-a to
 read as follows:
   § 7402-A. SMALL INSURER REHABILITATION  OR  LIQUIDATION.  1.  NOTWITH-
 STANDING  ANY OTHER PROVISION OF THIS CHAPTER TO THE CONTRARY, NO APPLI-
 CATION FOR AN ORDER OF REHABILITATION OR LIQUIDATION OF A SMALL  INSURER
 AS  DEFINED  IN  THIS  SECTION SHALL BE MADE ON THE GROUNDS SPECIFIED IN
 SUBSECTION (A) OR (C) OF SECTION SEVEN THOUSAND FOUR HUNDRED TWO OF THIS
 ARTICLE, UNLESS SUCH ORDER  IS  BASED  ON:    (A)  THE  SUPERINTENDENT'S
 ADOPTION OF A REPORT ON EXAMINATION, CONDUCTED IN ACCORDANCE WITH  ARTI-
 CLE  THREE  OF THIS CHAPTER, FINDING THE COMPANY INSOLVENT AS DEFINED IN
 SECTION ONE THOUSAND  THREE HUNDRED NINE OF THIS  CHAPTER;  OR  (B)  THE
 ANNUAL  OR  QUARTERLY  FINANCIAL  STATEMENTS  OF THE COMPANY: (I) IF THE
 FINANCIAL STATEMENTS REFLECT THAT THE COMPANY'S ADMITTED ASSETS  DO  NOT
 EXCEED  ITS  LIABILITIES  AND    SURPLUS  TO POLICYHOLDERS; AND (II) THE
 COMPANY DOES NOT MAINTAIN RESERVES IN AN AMOUNT DETERMINED    REASONABLE
 BY  ITS  INDEPENDENT  LOSS RESERVE SPECIALIST OR, IF NO INDEPENDENT LOSS
 RESERVE SPECIALIST IS REQUIRED, BY ITS APPOINTED ACTUARY.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10756-03-9
              

 A. 6781                             2
 
   2. NOTHING IN THIS SECTION SHALL RESTRICT THE  SUPERINTENDENT'S  RIGHT
 TO DIRECT AN  EXAMINATION PURSUANT TO SECTION THREE HUNDRED NINE OF THIS
 CHAPTER,  OR  OTHERWISE  INTERFERE  WITH THE SUPERINTENDENT'S REGULATORY
 AUTHORITY AS PROVIDED IN THIS  CHAPTER,  NOR  SHALL  THIS  PROVISION  BE
 CONSTRUED  TO  RESTRICT AN INSURER'S RIGHTS AND REMEDIES IN ANY JUDICIAL
 OR ADMINISTRATIVE PROCEEDING.
   3. AS USED IN THIS SECTION:
   (A) "SMALL  INSURER"  MEANS  A  DOMESTIC  PROPERTY/CASUALTY  INSURANCE
 COMPANY  WHOSE  ANNUAL NET DIRECT WRITTEN PREMIUMS WRITTEN DO NOT EXCEED
 TWENTY-FIVE MILLION DOLLARS, AT LEAST SEVENTY-FIVE PERCENT OF  WHICH  IS
 FROM COMMERCIAL AUTOMOBILE LIABILITY BUSINESS; AND
   (B)  "DIRECT WRITTEN PREMIUMS" MEANS THE GROSS DIRECT WRITTEN PREMIUMS
 LESS RETURN  PREMIUMS ON SUCH DIRECT BUSINESS.
   § 4. This act shall take effect on the thirtieth day  after  it  shall
 have  become a law. 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 to be made and completed
 on or before such date.