S T A T E O F N E W Y O R K
________________________________________________________________________
4254
2025-2026 Regular Sessions
I N A S S E M B L Y
January 31, 2025
___________
Introduced by M. of A. McDONALD, WEPRIN, STIRPE, SAYEGH, STECK, BLANKEN-
BUSH -- read once and referred to the Committee on Insurance
AN ACT to amend the insurance law, in relation to mortgage guaranty
insurance
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph 2 of subsection (a) of section 6502 of the insur-
ance law is amended to read as follows:
(2) it establishes a contingency reserve out of net premiums (gross
premiums less premiums returned to policyholders) remaining after estab-
lishing the unearned premium reserve. The company shall contribute to
the contingency reserve an amount equal to fifty percent of such remain-
ing earned premiums. Contributions to the contingency reserve made
during each calendar year shall be maintained for a period of one
hundred and twenty months, except that withdrawals may be made by the
company with the prior approval of the superintendent in any year in
which the actual incurred losses exceed thirty-five percent of the
corresponding earned premiums OR AS OTHERWISE MAY BE PERMITTED BY THE
SUPERINTENDENT IF AFTER DUE CONSIDERATION THE SUPERINTENDENT DETERMINES
THE WITHDRAWAL SHALL NOT BE HARMFUL TO POLICYHOLDERS. The unearned
premium reserve shall be computed as required by section one thousand
three hundred five of this chapter except that on policies covering a
risk period of more than one year it shall be computed in accordance
with standards promulgated by the superintendent; and
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01541-01-5
Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.
Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.
Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.