NY State Senate Bill 2021-S9006

Archive: Last Bill Status - In Assembly 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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 31, 2022	referred to insurance delivered to assembly passed senate
May 11, 2022	advanced to third reading
May 10, 2022	2nd report cal.
May 09, 2022	1st report cal.1090
May 03, 2022	referred to insurance

Votes

- May 31, 2022 - Floor Vote
  S9006
  
  54
  
  Aye
  
  9
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: May 31, 2022
      
      aye (54)
      
      Addabbo Jr.
      
      Akshar
      
      Bailey
      
      Biaggi
      
      Boyle
      
      Breslin
      
      Brisport
      
      Brooks
      
      Brouk
      
      Cleare
      
      Comrie
      
      Cooney
      
      Felder
      
      Gallivan
      
      Gaughran
      
      Gianaris
      
      Gounardes
      
      Harckham
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Kaminsky
      
      Kaplan
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mannion
      
      Martucci
      
      Mattera
      
      May
      
      Mayer
      
      Myrie
      
      Ortt
      
      Palumbo
      
      Parker
      
      Persaud
      
      Ramos
      
      Rath III
      
      Reichlin-Melnick
      
      Rivera
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stec
      
      Stewart-Cousins
      
      Thomas
      
      Weik
      
      nay (9)
      
      Borrello
      
      Griffo
      
      Helming
      
      Jordan
      
      O'Mara
      
      Oberacker
      
      Ritchie
      
      Serino
      
      Tedisco
  May 9, 2022 - Insurance Committee Vote
  S9006
  
  10
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Insurance Committee Vote: May 9, 2022
      
      aye (10)
      
      Breslin
      
      Brooks
      
      Cooney
      
      Gounardes
      
      Harckham
      
      Helming
      
      Kennedy
      
      O'Mara
      
      Parker
      
      Sanders Jr.
      
      aye wr (1)
      
      Serino

2021-S9006 (ACTIVE) - Details

See Assembly Version of this Bill:: A10226
Current Committee:: Assembly Insurance
Law Section:: Insurance Law
Laws Affected:: Amd Ins L, generally

2021-S9006 (ACTIVE) - Summary

Relates to group capital calculations, liquidity stress tests and confidentiality; authorizes the promulgation of regulations and the payment of certain expenses.

2021-S9006 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S9006

SPONSOR: BRESLIN
 
TITLE OF BILL:

An act to amend the insurance law, in relation to group capital calcu-
lations, liquidity stress tests, and confidentiality

 
SUMMARY OF PROVISIONS:

Section 1 of the bill would amend Insurance Law § 110(a)(1) and (2) to
permit the Superintendent of Financial Services ("Superintendent") to
share confidential information, including trade secret documents, with
any third-party consultant designated by the Superintendent, any local
law enforcement authority, and with any other entity designated by the
Superintendent in a regulation. It also would allow the Superintendent
to receive confidential information, including trade secret documents,
from any other entity designated by the Superintendent in a regulation.

Section 2 would add a new Insurance Law § 1503(c) to require a holding
company that directly or indirectly controls an insurer to file with the
Superintendent an annual GCC and the results of an annual LST in a form
prescribed by the Superintendent, provided, however, that the Super-

intendent may exempt a holding company from filing an annual GCC or the
results of an annual LST, or permit a holding company to submit a limit-
ed annual GCC, in accordance with criteria set forth in a regulation.

New Insurance Law § 1503(c) also would provide that no insurer, insur-
ance producer, or other person may make or issue in New York any adver-
tisement, sign, pamphlet, circular, card, or other public announcement
purporting to make known the GCC, group capital ratio, LST results or
supporting disclosures for such test, or any component derived in the
calculation thereof, of any insurer or holding company system, provided,
however, that an insurer may rebut any materially false statement with
respect to the foregoing with the Superintendent's prior approval.

Section 3 would amend Insurance Law § 1504(c) to provide that the
contents of any report made pursuant to Insurance. Law Article 15 are
proprietary and are not subject to subpoena or discovery or admissible
in evidence in any private civil action.

Section 4 would amend Insurance Law § 1506(f) to provide that a holding
company does not need to file with the Superintendent notice that it is
seeking to divest its controlling interest in a domestic insurer if an
acquisition of control notice is filed with the Superintendent.

Section 5 would add new Insurance Law §§ 1511 and 1512. Section 1511
would require a controlled insurer to be liable for and pay the reason-
able expenses of the Superintendent's participation in the adminis-
tration of group-wide supervision of internationally active insurance
groups, including the engagement of attorneys, actuaries, and any other
professionals and all reasonable travel expenses.  Section 1512 would
permit the Superintendent to promulgate regulations: (1) requiring a
controlled insurer deemed by the Superintendent to be in a hazardous
financial condition or a condition that would be grounds for a proceed-
ing under Insurance Law Article 74, to secure and maintain a deposit or
bond for certain transactions within the holding company system; (2)
requiring a holding company or controlled person that is party to an
agreement or contract with a controlled insurer to be subject to the
jurisdiction of any proceeding against the controlled insurer under
Insurance Law Article 74 and to the Superintendent, as receiver, for the
purpose of interpreting, enforcing, and overseeing the holding company's
or controlled person's obligations under the agreement or contract to
perform services for the controlled insurer; and (3) governing records
and data of, and premiums and other funds belonging to, a controlled
insurer that are held by a holding company or controlled person.

Section 6 would amend Insurance Law § 1603(d) to make changes similar to
the changes made to Insurance Law § 1506(f) in section 4 of this bill.

Section 7 would add a new Insurance Law § 1604(c) to make changes simi-
lar to the changes made to Insurance Law § 1503(c) in section 2 of this
bill.

Section 8 would amend Insurance Law § 1612 to permit the Superintendent
to promulgate regulations in a manner similar to Insurance Law § 1512 in
section 5 of this bill.

Section 9 would add a new Insurance Law §§ 1613 and 1614. Section 1613
would require a domestic insurer to pay the expenses of group-wide
supervision similar to Insurance Law § 1511 in section 5 of this bill.
Section 1614 which would provide that the contents of each report and
filing submitted under Article 16 and information pertaining thereto
must be kept confidential, is not subject to subpoena or discovery, is
not admissible in evidence in any private civil action, and may not be
made public unless, after notice and opportunity to be heard, the Super-
intendent determines that the interests of policyholders, subscribers,
stockholders, or the public will be served by the publication thereof.

Section 10 would amend Insurance Law § 1709 to expand the applicability
of the section and to provide that the information being kept confiden-
tial is not subject to discovery and is not admissible in evidence in
any private civil action.

Section 11 would amend Insurance Law § 1710(a) in a manner similar to
Insurance Law §§ 1506(f) and 1603(d) in sections 4 and 6 of this bill,
respectively.

Section 12 would amend Insurance Law § 1716 to permit the Superintendent
to promulgate regulations in a Rimier similar to Insurance Law §§ 1512
and 1612 in sections 5 and 8 of this bill, respectively.

Section 13 would add a new Insurance Law § 1717(c) to make changes like
the changes made by Insurance Law §§ 1503(c) and 1604(c) in sections 2
and 7 of this bill, respectively.

Section 14 would add a new Insurance Law § 1718, which would require a
parent corporation to pay the expenses of group-wide supervision similar
to Insurance Law §§ 1511 and 1613 in sections 5 and 9 of this bill,
respectively.

Section 15 would provide for an immediate effective date.

 
JUSTIFICATION:

The bill amends the Insurance Law to impose an annual GCC filing
requirement, which is necessary to comply with the bilateral agreements
between the U.S. and E.U. and U.S. and U.K. on prudential measures
regarding insurance and reinsurance. States must have a worldwide group
capital calculation in place by November 7, 2022 to avoid the E.U. or
U.K. imposing its own GCC on that group and therefore all the U.S.
insurers within the group. The GCC will also become an NAIC accredi-
tation standard with which DFS must comply to maintain its accredi-
tation. NAIC accreditation is a certification given to a state insurance
regulator once the regulator has demonstrated that it has met and
continues to meet baseline solvency regulation standards and various
legal, financial, and organizational standards as determined by a
committee of its peers.

The bill also adds an annual LST filing requirement, which also will
become an NAIC accreditation standard. According to the NAIC, to provide
more evidence-based analyses, an NAIC task force developed a LST target-
ed mainly at large life insurers that aims to capture the impact on the
broader financial markets of aggregate asset sales under a liquidity
stress event. The primary goal of the LST is to provide quantitative as
well as qualitative insights for macroprudential surveillance, such as
identifying the amount of asset sales that could occur during a specific
stress scenario. The LST also will aid micro prudential regulation.

The bill further amends the Insurance Law to permit the Superintendent
to promulgate regulations: (1) requiring an insurer deemed by the Super-
intendent to be in a hazardous financial condition or a condition that
would be grounds for a proceeding under Insurance Law Article 74, to
secure and maintain a deposit or bond for certain transactions within an
Insurance Law Article 15, 16, or 17 system; (2) requiring an entity in
an Insurance Law Article 15, 16, or 17 system (an "affiliate") that is
party to an agreement or contract with an insurer be subject to the
jurisdiction of any proceeding against the insurer under Insurance Law
Article 74 and to the Superintendent, as receiver, for the purpose of
interpreting, enforcing, and overseeing the affiliate's obligations
under the agreement or contract to perform services for the insurer; and
(3) governing records and data of, and premiums and other funds belong-
ing to, an insurer that are held by an affiliate. These regulations
would address the continuation of essential services through affiliated
intercompany agreements in a receivership, bringing affiliate service
providers deemed integral or essential to an insurer's operations under
the Superintendent's jurisdiction, as receiver, for purposes of inter-
preting, enforcing, and overseeing the affiliate's obligations under the
service agreement, and would give the Superintendent authority to
require that integral or essential affiliate service providers consent
to such jurisdiction.

In addition, the bill amends Insurance Law §§ 1506(f), 1603(d), and
1710(a) to provide that a holding company, authorized domestic insurer,
or parent corporation, respectively, does not need to file with the
Superintendent notice that it is seeking to divest its controlling
interest in a domestic insurer if an acquisition of control notice is
filed with the Superintendent. This amendment will prevent duplicative
notices and is consistent with the model Act.

Finally, the bill amends the Insurance Law to modify or add certain
confidentiality provisions to ensure consistency with the model Act and
other states in order to facilitate the sharing of confidential docu-
ments between state regulators.

 
PRIOR LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
Immediately.

2021-S9006 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9006
 
                             I N  S E N A T E
 
                                May 3, 2022
                                ___________
 
 Introduced by Sen. BRESLIN -- (at request of the Department of Financial
   Services)  --  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 group  capital  calcu-
   lations, liquidity stress tests, and confidentiality
 
   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) of section 110 of the
 insurance law, as amended by chapter  238  of  the  laws  of  2013,  are
 amended to read as follows:
   (1)  may  share  documents,  materials or other information, including
 confidential [and], privileged, AND TRADE SECRET documents, materials or
 information with other LOCAL, state, federal, and international  regula-
 tory agencies, with the National Association of Insurance Commissioners,
 its  affiliates  or  subsidiaries, [and] WITH ANY THIRD-PARTY CONSULTANT
 DESIGNATED BY THE SUPERINTENDENT, with LOCAL, state, federal, and inter-
 national law enforcement authorities, including members of any  supervi-
 sory college described in section three hundred two of this chapter, AND
 WITH  ANY OTHER ENTITY DESIGNATED BY THE SUPERINTENDENT IN A REGULATION,
 provided that the recipient has the authority and agrees to maintain the
 confidentiality and privileged status of the document, material or other
 information;  provided,  however,  that  this  paragraph  shall  not  be
 construed  as  limiting access to records pursuant to article six of the
 public officers law;
   (2) may receive documents, materials or information, including  other-
 wise confidential [and], privileged, AND TRADE SECRET documents, materi-
 als  or  information, from the National Association of Insurance Commis-
 sioners, its affiliates or subsidiaries [and], from regulatory  and  law
 enforcement  officials  of  other  foreign  or  domestic  jurisdictions,
 including members of any supervisory college described in section  three
 hundred two of this chapter, AND FROM ANY OTHER ENTITY DESIGNATED BY THE
 SUPERINTENDENT  IN  A  REGULATION, and shall maintain as confidential or
 privileged any document, material or information received with notice or
 the understanding that it is confidential or privileged under  the  laws
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD13689-01-2
 S. 9006                             2
 
 of  the  jurisdiction  that  is  the source of the document, material or
 information; and
   §  2.    Section  1503 of the insurance law is amended by adding a new
 subsection (c) to read as follows:
   (C) (1) A HOLDING COMPANY THAT  DIRECTLY  OR  INDIRECTLY  CONTROLS  AN
 INSURER  SHALL  FILE  WITH  THE  SUPERINTENDENT  AN ANNUAL GROUP CAPITAL
 CALCULATION AND THE RESULTS OF AN ANNUAL LIQUIDITY STRESS TEST IN A FORM
 PRESCRIBED BY THE SUPERINTENDENT, PROVIDED,  HOWEVER,  THAT  THE  SUPER-
 INTENDENT MAY EXEMPT A HOLDING COMPANY FROM FILING AN ANNUAL GROUP CAPI-
 TAL  CALCULATION  OR  THE RESULTS OF AN ANNUAL LIQUIDITY STRESS TEST, OR
 PERMIT A HOLDING COMPANY TO SUBMIT A LIMITED ANNUAL GROUP CAPITAL CALCU-
 LATION, IN ACCORDANCE WITH CRITERIA SET FORTH IN A REGULATION.
   (2) NO INSURER, INSURANCE PRODUCER, OR  OTHER  PERSON  SHALL  MAKE  OR
 ISSUE  IN  THIS STATE ANY ADVERTISEMENT, SIGN, PAMPHLET, CIRCULAR, CARD,
 OR OTHER PUBLIC ANNOUNCEMENT PURPORTING TO MAKE KNOWN THE GROUP  CAPITAL
 CALCULATION,  GROUP  CAPITAL  RATIO,  LIQUIDITY  STRESS  TEST RESULTS OR
 SUPPORTING DISCLOSURES FOR SUCH TEST, OR ANY COMPONENT  DERIVED  IN  THE
 CALCULATION THEREOF, OF ANY INSURER OR HOLDING COMPANY SYSTEM, PROVIDED,
 HOWEVER,  THAT  AN INSURER MAY REBUT ANY MATERIALLY FALSE STATEMENT WITH
 RESPECT TO THE FOREGOING WITH THE SUPERINTENDENT'S PRIOR APPROVAL.
   § 3.  Subsection (c) of section 1504 of the insurance law, as  amended
 by chapter 238 of the laws of 2013, is amended to read as follows:
   (c)  The  [superintendent shall keep the] contents of each report made
 pursuant to this article and  any  information  obtained  in  connection
 therewith SHALL BE confidential AND PROPRIETARY AND SHALL NOT BE SUBJECT
 TO  SUBPOENA OR DISCOVERY OR ADMISSIBLE IN EVIDENCE IN ANY PRIVATE CIVIL
 ACTION, and THE SUPERINTENDENT shall not make the  same  public  without
 the prior written consent of the controlled insurer to which it pertains
 unless  the superintendent, after notice and an opportunity to be heard,
 shall determine that the interests of policyholders, shareholders or the
 public will be served by the  publication  thereof.  In  any  action  or
 proceeding  by  the  superintendent  against  the person examined or any
 other person within the same holding company system  a  report  of  such
 examination  published  by  the  superintendent  shall  be admissible as
 evidence of the facts stated therein.
   § 4. Subsection (f) of section 1506 of the insurance law, as added  by
 chapter 238 of the laws of 2013, is amended to read as follows:
   (f)  Any holding company seeking to divest its controlling interest in
 a domestic insurer, in any manner, shall file with  the  superintendent,
 with  a copy to the insurer, notice of its proposed divestiture at least
 thirty days prior to the cessation of control,  PROVIDED,  HOWEVER  THAT
 THIS  SUBSECTION  SHALL  NOT  APPLY IF NOTICE IS PROVIDED AS REQUIRED BY
 SUBSECTION (A) OF THIS SECTION.
   § 5. The insurance law is amended by adding two new sections 1511  and
 1512 to read as follows:
   §  1511.  EXPENSES  FOR  GROUP-WIDE  SUPERVISION. A CONTROLLED INSURER
 SHALL BE LIABLE FOR AND SHALL PAY THE REASONABLE EXPENSES OF THE  SUPER-
 INTENDENT'S  PARTICIPATION  IN  THE  ADMINISTRATION OF GROUP-WIDE SUPER-
 VISION OF INTERNATIONALLY ACTIVE INSURANCE GROUPS, INCLUDING THE ENGAGE-
 MENT OF ATTORNEYS,  ACTUARIES,  AND  ANY  OTHER  PROFESSIONALS  AND  ALL
 REASONABLE TRAVEL EXPENSES.
   § 1512. REGULATIONS. THE SUPERINTENDENT MAY PROMULGATE REGULATIONS:
   (A)  REQUIRING A CONTROLLED INSURER DEEMED BY THE SUPERINTENDENT TO BE
 IN A HAZARDOUS FINANCIAL CONDITION OR A CONDITION THAT WOULD BE  GROUNDS
 FOR  A  PROCEEDING UNDER ARTICLE SEVENTY-FOUR OF THIS CHAPTER, TO SECURE
 S. 9006                             3
 
 AND MAINTAIN A DEPOSIT OR BOND FOR CERTAIN TRANSACTIONS WITHIN THE HOLD-
 ING COMPANY SYSTEM;
   (B)  REQUIRING A HOLDING COMPANY OR CONTROLLED PERSON THAT IS PARTY TO
 AN AGREEMENT OR CONTRACT WITH A CONTROLLED INSURER TO BE SUBJECT TO  THE
 JURISDICTION  OF  ANY  PROCEEDING  AGAINST  THE CONTROLLED INSURER UNDER
 ARTICLE SEVENTY-FOUR OF THIS  CHAPTER  AND  TO  THE  SUPERINTENDENT,  AS
 RECEIVER, FOR THE PURPOSE OF INTERPRETING, ENFORCING, AND OVERSEEING THE
 HOLDING COMPANY'S OR CONTROLLED PERSON'S OBLIGATIONS UNDER THE AGREEMENT
 OR CONTRACT TO PERFORM SERVICES FOR THE CONTROLLED INSURER; AND
   (C)  GOVERNING  RECORDS  AND  DATA  OF,  AND  PREMIUMS AND OTHER FUNDS
 BELONGING TO A CONTROLLED INSURER THAT ARE HELD BY A HOLDING COMPANY  OR
 CONTROLLED PERSON.
   §  6. Subsection (d) of section 1603 of the insurance law, as added by
 chapter 238 of the laws of 2013, is amended to read as follows:
   (d) Any domestic insurer seeking to divest its controlling interest in
 another domestic insurer, in any manner, shall file with the superinten-
 dent, with a copy to the insurer, notice of its proposed divestiture  at
 least  thirty  days prior to the cessation of control, PROVIDED, HOWEVER
 THAT THIS SUBSECTION SHALL NOT APPLY IF NOTICE IS PROVIDED  AS  REQUIRED
 BY SUBSECTION (A) OF THIS SECTION.
   §  7.  Section  1604  of  the insurance law is amended by adding a new
 subsection (c) to read as follows:
   (C) (1) AN AUTHORIZED DOMESTIC INSURER, OTHER THAN A DOMESTIC  INSURER
 REQUIRED  TO  REGISTER  AS  A CONTROLLED INSURER PURSUANT TO SECTION ONE
 THOUSAND FIVE HUNDRED THREE OF THIS CHAPTER, SHALL FILE WITH THE  SUPER-
 INTENDENT  AN  ANNUAL  GROUP CAPITAL CALCULATION IN A FORM PRESCRIBED BY
 THE SUPERINTENDENT,  PROVIDED,  HOWEVER,  THAT  THE  SUPERINTENDENT  MAY
 EXEMPT  AN AUTHORIZED DOMESTIC INSURER FROM FILING AN ANNUAL GROUP CAPI-
 TAL CALCULATION OR PERMIT AN AUTHORIZED DOMESTIC  INSURER  TO  SUBMIT  A
 LIMITED  ANNUAL  GROUP  CAPITAL CALCULATION, IN ACCORDANCE WITH CRITERIA
 SET FORTH IN A REGULATION. AN AUTHORIZED  DOMESTIC  INSURER  ALSO  SHALL
 FILE THE RESULTS OF AN ANNUAL LIQUIDITY STRESS TEST IN A FORM PRESCRIBED
 BY THE SUPERINTENDENT IF REQUIRED PURSUANT TO A REGULATION.
   (2)  NO  INSURER,  INSURANCE  PRODUCER,  OR OTHER PERSON SHALL MAKE OR
 ISSUE IN THIS STATE ANY ADVERTISEMENT, SIGN, PAMPHLET,  CIRCULAR,  CARD,
 OR  OTHER PUBLIC ANNOUNCEMENT PURPORTING TO MAKE KNOWN THE GROUP CAPITAL
 CALCULATION, GROUP CAPITAL  RATIO,  LIQUIDITY  STRESS  TEST  RESULTS  OR
 SUPPORTING  DISCLOSURES  FOR  SUCH TEST, OR ANY COMPONENT DERIVED IN THE
 CALCULATION THEREOF, OF ANY AUTHORIZED DOMESTIC  INSURER  OR  SUBSIDIARY
 THEREOF,  PROVIDED,  HOWEVER,  THAT  AN  AUTHORIZED DOMESTIC INSURER MAY
 REBUT ANY MATERIALLY FALSE STATEMENT WITH RESPECT TO THE FOREGOING  WITH
 THE SUPERINTENDENT'S PRIOR APPROVAL.
   § 8. Section 1612 of the insurance law is amended to read as follows:
   § 1612. Regulations.  (A) In addition to the powers expressly given by
 this article, the superintendent shall have  the  power  to  promulgate,
 from time to time, such regulations, not inconsistent with this chapter,
 as may be appropriate to carry out this article and, insofar as applica-
 ble to this article, other provisions of this chapter.
   (B) THE SUPERINTENDENT ALSO MAY PROMULGATE REGULATIONS:
   (1) REQUIRING AN AUTHORIZED DOMESTIC INSURER DEEMED BY THE SUPERINTEN-
 DENT  TO BE IN A HAZARDOUS FINANCIAL CONDITION OR A CONDITION THAT WOULD
 BE GROUNDS FOR A PROCEEDING UNDER ARTICLE SEVENTY-FOUR OF THIS  CHAPTER,
 TO SECURE AND MAINTAIN A DEPOSIT OR BOND FOR CERTAIN TRANSACTIONS WITH A
 SUBSIDIARY;
   (2)  REQUIRING  A SUBSIDIARY THAT IS PARTY TO AN AGREEMENT OR CONTRACT
 WITH AN AUTHORIZED DOMESTIC INSURER TO BE SUBJECT TO THE JURISDICTION OF
 S. 9006                             4

 ANY PROCEEDING AGAINST THE DOMESTIC INSURER UNDER  ARTICLE  SEVENTY-FOUR
 OF  THIS CHAPTER AND TO THE SUPERINTENDENT, AS RECEIVER, FOR THE PURPOSE
 OF INTERPRETING, ENFORCING, AND OVERSEEING THE SUBSIDIARY'S  OBLIGATIONS
 UNDER  THE  AGREEMENT  OR  CONTRACT TO PERFORM SERVICES FOR THE DOMESTIC
 INSURER; AND
   (3) GOVERNING RECORDS AND  DATA  OF,  AND  PREMIUMS  AND  OTHER  FUNDS
 BELONGING TO, A DOMESTIC INSURER THAT ARE HELD BY A SUBSIDIARY.
   §  9. The insurance law is amended by adding two new sections 1613 and
 1614 to read as follows:
   § 1613. EXPENSES FOR GROUP-WIDE SUPERVISION.  AN  AUTHORIZED  DOMESTIC
 INSURER SHALL BE LIABLE FOR AND SHALL PAY THE REASONABLE EXPENSES OF THE
 SUPERINTENDENT'S  PARTICIPATION  IN  THE  ADMINISTRATION  OF  GROUP-WIDE
 SUPERVISION OF INTERNATIONALLY ACTIVE INSURANCE  GROUPS,  INCLUDING  THE
 ENGAGEMENT  OF ATTORNEYS, ACTUARIES, AND ANY OTHER PROFESSIONALS AND ALL
 REASONABLE TRAVEL EXPENSES.
   § 1614. CONFIDENTIALITY OF REPORTS AND FILINGS.  THE CONTENTS OF  EACH
 REPORT  AND  FILING  SUBMITTED  PURSUANT TO THIS ARTICLE AND INFORMATION
 PERTAINING THERETO SHALL BE KEPT CONFIDENTIAL, SHALL NOT BE  SUBJECT  TO
 SUBPOENA  OR  DISCOVERY,  SHALL  NOT  BE  ADMISSIBLE  IN EVIDENCE IN ANY
 PRIVATE CIVIL ACTION, AND SHALL NOT BE MADE PUBLIC UNLESS, AFTER  NOTICE
 AND  OPPORTUNITY  TO  BE  HEARD,  THE SUPERINTENDENT DETERMINES THAT THE
 INTERESTS OF POLICYHOLDERS, SUBSCRIBERS, STOCKHOLDERS OR THE PUBLIC WILL
 BE SERVED BY THE PUBLICATION THEREOF.
   § 10. Section 1709 of the insurance law, as amended by chapter 381  of
 the laws of 1986, is amended to read as follows:
   § 1709. Confidentiality  of  [information]  reports  AND  FILINGS. The
 contents of each  [information]  report  [filed  hereunder]  AND  FILING
 SUBMITTED  PURSUANT  TO  THIS ARTICLE and information pertaining thereto
 shall be kept confidential, shall not be subject to subpoena OR  DISCOV-
 ERY,  SHALL  NOT  BE ADMISSIBLE IN EVIDENCE IN ANY PRIVATE CIVIL ACTION,
 and shall not be made public unless, after notice and opportunity to  be
 heard,  the  superintendent determines that the interests of policyhold-
 ers, subscribers, stockholders or the  public  will  be  served  by  the
 publication  thereof. The provisions of this section shall not be appli-
 cable to any [information] report [filed hereunder] OR FILING  SUBMITTED
 PURSUANT  TO THIS ARTICLE and any information pertaining thereto, if the
 parent corporation is a corporation subject to  article  forty-three  of
 this chapter.
   § 11. Subsection (a) of section 1710 of the insurance law, as added by
 chapter 238 of the laws of 2013, is amended to read as follows:
   (a)  Any parent corporation seeking to divest its controlling interest
 in a domestic insurer, in any manner, shall file  with  the  superinten-
 dent,  with a copy to the insurer, notice of its proposed divestiture at
 least thirty days prior to the cessation of control,  PROVIDED,  HOWEVER
 THAT  THIS  SUBSECTION SHALL NOT APPLY IF NOTICE IS PROVIDED AS REQUIRED
 BY SUBSECTION (B) OF SECTION ONE THOUSAND  SEVEN  HUNDRED  ONE  OF  THIS
 ARTICLE.
   § 12. Section 1716 of the insurance law is amended to read as follows:
   §  1716. Regulations. (A) In addition to the powers expressly given by
 this article, the superintendent shall have  the  power  to  promulgate,
 from   time  to  time,  such  regulations,  not  inconsistent  with  the
 provisions of this chapter, as may  be  appropriate  to  carry  out  the
 provisions  of  this article and, insofar as applicable to this article,
 other provisions of this chapter.
   (B) THE SUPERINTENDENT ALSO MAY PROMULGATE REGULATIONS:
 S. 9006                             5

   (1) REQUIRING A PARENT CORPORATION DEEMED BY THE SUPERINTENDENT TO  BE
 IN  A HAZARDOUS FINANCIAL CONDITION OR A CONDITION THAT WOULD BE GROUNDS
 FOR A PROCEEDING UNDER ARTICLE SEVENTY-FOUR OF THIS CHAPTER,  TO  SECURE
 AND  MAINTAIN  A DEPOSIT OR BOND FOR CERTAIN TRANSACTIONS WITH A SUBSID-
 IARY;
   (2)  REQUIRING  A SUBSIDIARY THAT IS PARTY TO AN AGREEMENT OR CONTRACT
 WITH A PARENT CORPORATION TO BE  SUBJECT  TO  THE  JURISDICTION  OF  ANY
 PROCEEDING  AGAINST THE PARENT CORPORATION UNDER ARTICLE SEVENTY-FOUR OF
 THIS CHAPTER AND TO THE SUPERINTENDENT, AS RECEIVER, FOR THE PURPOSE  OF
 INTERPRETING,  ENFORCING,  AND  OVERSEEING  THE SUBSIDIARY'S OBLIGATIONS
 UNDER THE AGREEMENT OR CONTRACT  TO  PERFORM  SERVICES  FOR  THE  PARENT
 CORPORATION; AND
   (3)  GOVERNING  RECORDS  AND  DATA  OF,  AND  PREMIUMS AND OTHER FUNDS
 BELONGING TO, A PARENT CORPORATION THAT ARE HELD BY A SUBSIDIARY.
   § 13. Section 1717 of the insurance law is amended  by  adding  a  new
 subsection (c) to read as follows:
   (C) (1) A PARENT CORPORATION, OTHER THAN A PARENT CORPORATION REQUIRED
 TO  REGISTER  AS  A  CONTROLLED INSURER PURSUANT TO SECTION ONE THOUSAND
 FIVE HUNDRED THREE OF THIS CHAPTER, SHALL FILE WITH  THE  SUPERINTENDENT
 AN ANNUAL GROUP CAPITAL CALCULATION AND THE RESULTS OF AN ANNUAL LIQUID-
 ITY  STRESS  TEST  IN A FORM PRESCRIBED BY THE SUPERINTENDENT, PROVIDED,
 HOWEVER, THAT THE SUPERINTENDENT MAY EXEMPT A  PARENT  CORPORATION  FROM
 FILING  AN  ANNUAL GROUP CAPITAL CALCULATION OR THE RESULTS OF AN ANNUAL
 LIQUIDITY STRESS TEST, OR PERMIT A PARENT CORPORATION TO SUBMIT A LIMIT-
 ED ANNUAL GROUP CAPITAL CALCULATION, IN  ACCORDANCE  WITH  CRITERIA  SET
 FORTH IN A REGULATION.
   (2)  NO  INSURER,  INSURANCE  PRODUCER,  OR OTHER PERSON SHALL MAKE OR
 ISSUE IN THIS STATE ANY ADVERTISEMENT, SIGN, PAMPHLET,  CIRCULAR,  CARD,
 OR  OTHER PUBLIC ANNOUNCEMENT PURPORTING TO MAKE KNOWN THE GROUP CAPITAL
 CALCULATION, GROUP CAPITAL  RATIO,  LIQUIDITY  STRESS  TEST  RESULTS  OR
 SUPPORTING  DISCLOSURES  FOR  SUCH TEST, OR ANY COMPONENT DERIVED IN THE
 CALCULATION THEREOF, OF ANY PARENT CORPORATION  OR  SUBSIDIARY  THEREOF,
 PROVIDED,  HOWEVER,  THAT  A PARENT CORPORATION MAY REBUT ANY MATERIALLY
 FALSE STATEMENT WITH RESPECT TO THE FOREGOING WITH THE  SUPERINTENDENT'S
 PRIOR APPROVAL.
   §  14.  The  insurance  law is amended by adding a new section 1718 to
 read as follows:
   § 1718. EXPENSES FOR  GROUP-WIDE  SUPERVISION.  A  PARENT  CORPORATION
 SHALL  BE LIABLE FOR AND SHALL PAY THE REASONABLE EXPENSES OF THE SUPER-
 INTENDENT'S PARTICIPATION IN THE  ADMINISTRATION  OF  GROUP-WIDE  SUPER-
 VISION OF INTERNATIONALLY ACTIVE INSURANCE GROUPS, INCLUDING THE ENGAGE-
 MENT  OF  ATTORNEYS,  ACTUARIES,  AND  ANY  OTHER  PROFESSIONALS AND ALL
 REASONABLE TRAVEL EXPENSES.
   § 15. This act shall take effect immediately.

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Senate Bill S9006

Sponsored By

Archive: Last Bill Status - In Assembly Committee

May 31, 2022 - Floor Vote

Floor Vote: May 31, 2022

May 9, 2022 - Insurance Committee Vote

Insurance Committee Vote: May 9, 2022

2021-S9006 (ACTIVE) - Details

2021-S9006 (ACTIVE) - Summary

2021-S9006 (ACTIVE) - Sponsor Memo

2021-S9006 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S9006

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Sponsored By

Neil D. Breslin

Archive: Last Bill Status - In Assembly Committee

2021-S9006 (ACTIVE) - Details

2021-S9006 (ACTIVE) - Summary

2021-S9006 (ACTIVE) - Sponsor Memo

2021-S9006 (ACTIVE) - Bill Text download pdf

Comments