Senate Bill S3671

2021-2022 Legislative Session

Enacts the small insurer protection act prohibiting the filing of an application for an order of rehabilitation or liquidation of a small insurer on certain grounds unless such order is based on certain findings

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Archive: Last Bill Status - In Senate Committee Insurance Committee


  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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2021-S3671 (ACTIVE) - Details

Current Committee:
Senate Insurance
Law Section:
Insurance Law
Laws Affected:
Add §7402-a, Ins L
Versions Introduced in Other Legislative Sessions:
2019-2020: S5327
2023-2024: S1495

2021-S3671 (ACTIVE) - Summary

Enacts the small insurer protection act prohibiting the filing of an application for an order of rehabilitation or liquidation of a small insurer on certain grounds unless such order is based on: the superintendent's adoption of a report on examination finding the company insolvent; or the annual or quarterly financial statements of the company, which show that the company's admitted assets do not exceed its liabilities and surplus to policyholders if the company does not maintain reserves in an amount determined reasonable by its independent loss reserve specialist or its appointed actuary.

2021-S3671 (ACTIVE) - Sponsor Memo

2021-S3671 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3671
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 30, 2021
                                ___________
 
 Introduced by Sens. COMRIE, KAMINSKY, PARKER, STAVISKY -- 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  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.
              

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