Assembly Bill A10084

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10084
 
                           I N  A S S E M B L Y
 
                             January 30, 2026
                                ___________
 
 Introduced by M. of A. WEPRIN -- read once and referred to the Committee
   on Insurance
 
 AN ACT to amend the insurance law, in relation to orders of conservation
   for domestic insurers
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 7406 of the insurance law,  the  opening  paragraph
 and  paragraph 1 of subsection (a) as amended by chapter 215 of the laws
 of 1993, is amended to read as follows:
   § 7406. Grounds for conservation of assets of A DOMESTIC,  foreign  or
 alien  insurer.  (a) The superintendent may apply under this article for
 an order directing the superintendent to conserve the assets within  the
 state of a DOMESTIC OR foreign insurer upon:
   (1)  any  of the grounds specified in subsection (a) through (g), (j),
 (k) or (o) of section seven thousand four hundred two of  this  article,
 or
   (2)  upon  the ground that such insurer has consented to such an order
 through a majority of its directors, shareholders or members,  or,  WITH
 RESPECT  TO  A FOREIGN INSURER, has had its property sequestrated in its
 domiciliary country or state or in any other country or state.
   (b) The superintendent may apply  under  this  article  for  an  order
 directing  [him]  THEM  to  conserve  the assets within this state of an
 alien insurer, except one which has its trusteed assets in  this  state,
 on any of the grounds specified in subsection (a), (b), (d) through (g),
 (j)  or  (k) of section seven thousand four hundred two of this article,
 or upon the ground that it has failed or refused to comply,  within  the
 time  designated by the superintendent, with an order of the superinten-
 dent, pursuant to law, to rectify an impairment of its trusteed surplus,
 or that it has consented to such an order  through  a  majority  of  its
 directors, shareholders or members, or has had its property sequestrated
 in its domiciliary country or elsewhere.
   §  2.  Section 7407 of the insurance law, as amended by chapter 169 of
 the laws of 1990, is amended to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11934-01-5
              

 A. 10084                            2
 
   § 7407. Order of conservation  OF  A  DOMESTIC  INSURER  or  ancillary
 liquidation  of a foreign or alien insurer. (a) An order to conserve the
 assets of a foreign or alien insurer shall direct the superintendent and
 [his] THEIR successors in office,  as  conservator,  forthwith  to  take
 possession  of,  and conserve, the insurer's property within this state,
 subject to the court's further direction.
   (b) WHERE THE  SUPERINTENDENT  HAS  BEEN  APPOINTED  PURSUANT  TO  THE
 PROVISIONS OF SECTION SEVEN THOUSAND FOUR HUNDRED SIX OF THIS ARTICLE AS
 CONSERVATOR  OF  THE ASSETS OF A DOMESTIC INSURER, THE CONSERVATOR SHALL
 CONDUCT AN ANALYSIS OF THE  BUSINESS  AND  FINANCIAL  CONDITION  OF  THE
 INSURER  AND  MAY TAKE SUCH ACTION AS THE CONSERVATOR DEEMS NECESSARY OR
 APPROPRIATE TO CORRECT THE PROBLEMS THAT LED TO THE ORDER  OF  CONSERVA-
 TION  AND  RESTORE  THE  INSURER  TO PRIVATE MANAGEMENT AND NORMAL OPER-
 ATIONS.
   (C) Where the  superintendent  has  been  appointed  pursuant  to  the
 provisions of section seven thousand four hundred six of this article as
 conservator  of the assets within the state of a foreign or alien insur-
 er, for which a domiciliary receiver is subsequently appointed for  such
 insurer  in  its  domiciliary state which is also a reciprocal state, as
 defined in section seven thousand four hundred eight  of  this  article,
 the  superintendent,  upon  request  of the domiciliary receiver, shall,
 notwithstanding subsection (a) of section seven  thousand  four  hundred
 ten  of  this  article,  apply  to  the court in which such conservation
 proceeding was commenced for an order appointing the  superintendent  as
 ancillary receiver for such foreign or alien insurer.
   [(c)] (D) Whenever a domiciliary receiver is appointed for any insurer
 in its domiciliary state which is also a reciprocal state, as defined in
 section  seven  thousand  four hundred eight of this article, the super-
 intendent, upon request of the  domiciliary  receiver,  shall,  notwith-
 standing  subsection  (a)  of section seven thousand four hundred ten of
 this article, apply to a court of competent jurisdiction  for  an  order
 appointing the superintendent as ancillary receiver of such insurer.
   [(d)]  (E)  Notwithstanding  subsection  (a) of section seven thousand
 four hundred ten of this article, the court may on  the  application  of
 the  superintendent  pursuant  to subsection [(b) or] (c) OR (D) of this
 section appoint the superintendent as the  ancillary  receiver  in  this
 state, subject to the provisions of sections seven thousand four hundred
 eight  through  seven  thousand  four  hundred  fifteen of this article.
 Subject to the provisions of such sections, the rights and duties of the
 superintendent with reference to such  insurer  and  such  assets  shall
 include those heretofore exercised by and imposed upon ancillary receiv-
 ers of foreign corporations in this state.
   §  3.  This  act  shall take effect immediately and shall apply to all
 appointments pursuant to the provisions of section seven  thousand  four
 hundred six of the insurance law which occur on and after such date.