Senate Bill S3568

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3568
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 30, 2021
                                ___________
 
 Introduced  by  Sen. BRESLIN -- 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 the limitation on  the
   accumulation of surplus of life insurance companies
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraphs 1 and 2 of subsection (a) section  4219  of  the
 insurance  law,  as  amended  by  chapter  340  of the laws of 2005, are
 amended and a new subsection (d) is added to read as follows:
   (1) Any domestic mutual life insurance company may maintain a surplus,
 above all of its  reserves  and  liabilities  required  or  specifically
 permitted  by  this  chapter,  not  exceeding  the greatest of (A) eight
 hundred fifty thousand dollars, or (B) [ten] TWENTY percent of its poli-
 cy reserves and policy liabilities, or (C) [ten] TWENTY percent  of  its
 policy reserves and policy liabilities plus (i) the product of three and
 its  authorized  control  level  RBC  as  determined  in accordance with
 section one thousand three hundred twenty-two of this chapter minus (ii)
 the asset valuation reserve as reported in its annual statement, or  (D)
 the  minimum  amount  of  capital and surplus required by law of another
 state in which the company is authorized to do business.
   (2) Any domestic stock life insurance  company  issuing  participating
 policies  only  or  both participating and non-participating policies or
 contracts in accordance with subsection (f) of section four thousand two
 hundred thirty-one of this article, may maintain a participating policy-
 holders' surplus, above all of its reserves and liabilities arising  out
 of  participating  policies,  required  or specifically permitted by the
 provisions of this chapter,  not  exceeding  the  greatest  of  (A)  two
 hundred  fifty  thousand  dollars,  or  (B) [ten] TWENTY percent of such
 policy reserves and such policy liabilities, or (C) [ten] TWENTY percent
 of such policy reserves and policy liabilities plus the  amount  derived
 by  prorating,  based upon the ratio of participating assets to admitted
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD07596-01-1

 S. 3568                             2
 
 assets, (i) the product of three and its authorized control level RBC as
 determined in accordance with section one thousand three  hundred  twen-
 ty-two  of  this  chapter  minus  (ii)  the  asset  valuation reserve as
 reported in its annual statement.
   (D) NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, THE AMOUNT OF
 ANY  FUNDS  ADVANCED  OR  BORROWED  BY  ANY DOMESTIC INSURER PURSUANT TO
 SECTION ONE THOUSAND THREE  HUNDRED  SEVEN  OF  THIS  CHAPTER  SHALL  BE
 EXCLUDED  FROM  THE  CALCULATION  OF  THE  MAXIMUM SURPLUS PRESCRIBED BY
 SUBSECTION (A) OF THIS SECTION.
   § 2. Section 1307 of the insurance law is  amended  by  adding  a  new
 subsection (e) to read as follows:
   (E)  ANY SUM SO ADVANCED OR BORROWED SHALL BE EXCLUDED FROM THE CALCU-
 LATION OF THE MAXIMUM SURPLUS PRESCRIBED BY SUBSECTION  (A)  OF  SECTION
 FOUR THOUSAND TWO HUNDRED NINETEEN OF THIS CHAPTER.
   § 3. This act shall take effect immediately.