S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    383
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              January 9, 2023
                                ___________
 
 Introduced by M. of A. JOYNER -- read once and referred to the Committee
   on Labor
 
 AN  ACT to amend the workers' compensation law and the insurance law, in
   relation to diversifying the New York state insurance  fund's  invest-
   ment authority
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The section heading and subdivisions  1,  2,  3  and  7  of
 section  87  of  the  workers' compensation law, the section heading and
 subdivision 1 as amended and subdivisions 2, 3 and 7 as added by section
 20 of part GG of chapter 57 of the laws of 2013, are amended to read  as
 follows:
   [Investment of surplus or reserve] INVESTMENTS.  1. Any of the reserve
 funds belonging to the state insurance fund, by order of the commission-
 ers,  approved  by  the  superintendent  of  financial  services, may be
 invested in the types of [securities] INVESTMENTS described in [subdivi-
 sions one, two, three, four, five, six, eleven, twelve, twelve-a,  thir-
 teen,  fourteen,  fifteen,  nineteen,  twenty, twenty-one, twenty-one-a,
 twenty-four, twenty-four-a, twenty-four-b, twenty-four-c and twenty-five
 of section two hundred thirty-five of the banking law or  in  paragraph]
 PARAGRAPHS  ONE,  TWO,  THREE  AND FOUR OF SUBSECTION (B) OF SECTION ONE
 THOUSAND FOUR HUNDRED TWO OF THE INSURANCE LAW AND PARAGRAPHS ONE,  two,
 THREE,  FOUR,  FIVE, SIX, SEVEN, AND ELEVEN of subsection (a) of section
 one thousand four hundred four of the insurance law WITH THE QUALITATIVE
 STANDARDS OR QUANTITATIVE LIMITATIONS WHICH ARE SET FORTH IN SUCH  PARA-
 GRAPHS  except  that  [up  to] A MINIMUM OF five percent of such reserve
 funds [may] SHALL be invested in the TYPES OF securities [of any solvent
 American institution as] described in [such  paragraph  irrespective  of
 the  rating  of such institution's obligations or other similar qualita-
 tive standards described therein] PARAGRAPHS ONE, TWO, THREE AND FOUR OF
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02791-01-3
 A. 383                              2
              

 
 SUBSECTION (B) OF SECTION ONE THOUSAND FOUR HUNDRED TWO OF THE INSURANCE
 LAW.
   2.  Any  [of  the surplus] funds belonging to the state insurance fund
 EXCEEDING SEVENTY PERCENT  OF  THE  AGGREGATE  OF  LOSS  RESERVES,  LOSS
 EXPENSE  RESERVES  AND  FIFTY  PERCENT  OF UNEARNED PREMIUM RESERVES, by
 order of the commissioners, approved by the superintendent of  financial
 services,  may  be  invested  in  the  types of [securities described in
 subdivisions one, two, three, four, five, six, eleven, twelve, twelve-a,
 thirteen, fourteen, fifteen, nineteen, twenty, twenty-one, twenty-one-a,
 twenty-four, twenty-four-a, twenty-four-b, twenty-four-c and twenty-five
 of section two hundred thirty-five of the banking law or,  up  to  fifty
 percent  of  surplus  funds,  in the types of securities or] investments
 described in [paragraphs two, three, eight and ten of]  PARAGRAPHS  ONE,
 TWO,  THREE  AND  FOUR  OF  SUBSECTION  (B) OF SECTION ONE THOUSAND FOUR
 HUNDRED TWO OF THE INSURANCE LAW AND subsection (a) of section one thou-
 sand four hundred four of the insurance law,  [except  that  up  to  ten
 percent  of  surplus  funds  may  be  invested  in the securities of any
 solvent American institution as described in such  paragraphs  irrespec-
 tive  of  the  rating of such institution's obligations or other similar
 qualitative standards described therein,] BUT SUCH INVESTMENTS SHALL NOT
 BE SUBJECT TO THE  QUALITATIVE  STANDARDS  OR  QUANTITATIVE  LIMITATIONS
 WHICH  ARE  SET  FORTH  WITH RESPECT TO ANY INVESTMENT PERMITTED BY SUCH
 SUBSECTION and [up to fifteen percent of surplus funds in securities  or
 investments  which  do  not  otherwise qualify for investment under this
 section as shall be made with the care, prudence and diligence under the
 circumstances then prevailing that a prudent person  acting  in  a  like
 capacity  and  familiar with such matters would use in the conduct of an
 enterprise of a like character and with like aims as  provided  for  the
 state  insurance  fund  under  this  article,  but shall not include any
 direct derivative instrument or derivative transaction except for  hedg-
 ing  purposes]  IN ACCORDANCE WITH SECTION ONE THOUSAND FOUR HUNDRED TEN
 OF THE INSURANCE LAW.   [Notwithstanding any  other  provision  in  this
 subdivision,  the  aggregate  amount  that  the state insurance fund may
 invest in the types of securities or investments described in paragraphs
 three, eight and ten of subsection (a)  of  section  one  thousand  four
 hundred  four  of  the insurance law and as a prudent person acting in a
 like capacity would invest as provided in  this  subdivision  shall  not
 exceed fifty percent of such surplus funds.]
   3. Any [of the surplus or reserve] funds belonging to the state insur-
 ance  fund,  upon  like  approval  of  the  superintendent  of financial
 services, may be loaned on  the  pledge  of  any  such  securities.  The
 commissioners,  upon  like  approval  of the superintendent of financial
 services, may also sell any of such securities or investments.
   7. Notwithstanding any provision in this  section,  the  [surplus  and
 reserve]  funds of the state insurance fund shall not be invested in any
 investment that has  been  found  by  the  superintendent  of  financial
 services  to be against public policy or in any investment prohibited by
 the provisions of [paragraph six of subsection (a) of section one  thou-
 sand  four  hundred  four  of the insurance law or by the provisions of]
 paragraph one, two, three, four, six,  SEVEN,  eight,  nine  or  ten  of
 subsection  (a) of section one thousand four hundred seven of the insur-
 ance law OR IN EXCESS OF ANY LIMITATION PROVIDED UNDER SECTION ONE THOU-
 SAND FOUR HUNDRED NINE OF THE INSURANCE LAW.
   § 2. Subsection (c) of section 1108 of the insurance law,  as  amended
 by  section  38 of part SS of chapter 54 of the laws of 2016, is amended
 to read as follows:
 A. 383                              3

   (c) The  state  insurance  fund  of  this  state,  except  as  to  the
 provisions  of  SECTION ONE THOUSAND FOUR HUNDRED TEN, subsection (d) of
 section two thousand three hundred thirty-nine, section  three  thousand
 one  hundred ten, subsection (a), paragraph one of subsection (b), para-
 graph  three of subsection (c) and subsection (d) of section three thou-
 sand two hundred one, sections three thousand  two  hundred  two,  three
 thousand  two hundred four, subsections (a) through (d) of section three
 thousand two hundred twenty-one, subsections (b) and (c) of section four
 thousand two hundred twenty-four,  section  four  thousand  two  hundred
 twenty-six  and  subsections  (a)  and  (b), (g) through (j), and (n) of
 section four thousand two hundred thirty-five of this chapter and except
 as otherwise specifically provided by the laws of this state.
   § 3. Subsection (a) of section 1410 of the insurance law, as added  by
 chapter 650 of the laws of 1998, is amended to read as follows:
   (a)  For  purposes  of  this  section,  except  subsection (k) of this
 section, an insurer shall mean  a  domestic  life  insurer,  a  domestic
 property/casualty  insurer,  a  domestic  reciprocal insurer, a domestic
 mortgage guaranty insurer,  a  domestic  co-operative  property/casualty
 insurance  corporation  [or],  a domestic financial guaranty insurer, OR
 THE STATE INSURANCE FUND OF THIS STATE.
   § 4. This act shall take effect immediately.