S T A T E O F N E W Y O R K
________________________________________________________________________
9629
I N A S S E M B L Y
March 28, 2022
___________
Introduced by M. of A. McDONALD -- read once and referred to the Commit-
tee on Insurance
AN ACT to amend the insurance law, in relation to mortgage guaranty
insurance
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph 2 of subsection (a) of section 6502 of the insur-
ance law is amended to read as follows:
(2) it establishes a contingency reserve out of net premiums (gross
premiums less premiums returned to policyholders) remaining after estab-
lishing the unearned premium reserve. The company shall contribute to
the contingency reserve an amount equal to fifty percent of such remain-
ing earned premiums. Contributions to the contingency reserve made
during each calendar year shall be maintained for a period of one
hundred and twenty months, except that withdrawals may be made by the
company with the prior approval of the superintendent in any year in
which the actual incurred losses exceed thirty-five percent of the
corresponding earned premiums OR AS OTHERWISE PERMITTED BY THE SUPER-
INTENDENT. The unearned premium reserve shall be computed as required
by section one thousand three hundred five of this chapter except that
on policies covering a risk period of more than one year it shall be
computed in accordance with standards promulgated by the superintendent;
and
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14750-01-2
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