Senate Bill S7934

2025-2026 Legislative Session

Provides exceptions to pure and group captive insurance companies who are public entities, political subdivisions, public authorities, public benefit corporations, or a subsidiary thereof

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Current 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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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 14, 2025	referred to insurance

2025-S7934 (ACTIVE) - Details

Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §§7003, 7005, 7007 & 7006, Ins L

2025-S7934 (ACTIVE) - Summary

Requires pure captive insurance companies and group captive insurance companies who are a public entity, political subdivision, public authority, public benefit corporation, or a subsidiary thereof to hold at least two meetings each year in this state, have a majority of members required to be residents of this state, file an annual report with the governor, the temporary president of the senate, the speaker of the assembly, and the minority leaders of the senate and assembly, and submit to additional examinations.

2025-S7934 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7934

SPONSOR: HELMING
 
TITLE OF BILL:

An act to amend the insurance law, in relation to providing exceptions
to pure captive insurance companies and group captive insurance compa-
nies, who are public entities, political subdivisions, public authori-
ties, public benefit corporations, or a subsidiary thereof

 
PURPOSE:

To increase transparency and accountability for pure captive insurance
companies and group captive insurance companies which are public enti-
ties, political subdivisions, public authorities, public benefit corpo-
rations, or a subsidiary thereof

 
SUMMARY OF PROVISIONS:

Section I: Amends paragraph 2 of subsection (b) of section 7003 of the
insurance law to require that any pure captive insurance company or
group captive insurance company who is a public entity, political subdi-

vision, public authority, public benefit corporation, or a subsidiary
thereof, its board of directors hold at least two meetings each year in
New York State.

Section 2: Amends subsection (g) of section 7005 of the insurance law to
require that in the case of any pure captive insurance company or group
captive insurance company who is a public entity, political subdivision,
public authority, public benefit corporation, or a subsidiary thereof,
the board of directors shall have a majority of members required to be
residents of New York State.

Section 3: Amends section 7007 of the insurance law require that, in the
case of any pure captive insurance company or group captive insurance
company who is a public entity, political subdivision, public authority,
public benefit corporation, or a subsidiary thereof, the superintendent
shall conduct an examination into the affairs of such pure or group
captive insurance company at least once every three years; authorizes
the State Comptroller to make an examination into the affairs of such
company if the state comptroller deems it necessary at any time for the
protection of the interests of the people of New York.

Section 4: Amends section 7006 of the insurance law to require that any
pure captive insurance company or group captive insurance company who is
a public entity, political subdivision, public authority, public benefit
corporation, or a subsidiary thereof file irequired'annual reports with
the Governor, Temporary President of the Senate, Speaker of the Assem-
bly, and the Minority Leaders of the Senate and Assembly in addition to
the superintendent.

Section 5: Provides the effective date

 
JUSTIFICATION:

In recent years, there has been a proliferation of public captive insur-
ance companies to insure a wide range of risks across New York State.
The fmal FY2026 budget authorized the creation of another captive insur-
ance company by the New York Convention Center Operating Corporation
(NYCC) control board or its statutory subsidiary. The FY2026 Executive
Budget also included proposals to authorize the Battery City Park
Authority, NYSERDA, the NYS Olympic Region Development Authority, and
the Roosevelt Island Operating Corporation to form captive insurance
companies, though these proposals were ultimately omitted from the final
budget.

With this proliferation of captive insurance companies in the public
sector and the potential for future authorizations of captive insurance
companies, we must take steps to ensure public accountability and trans-
parency and ensure that these captive insurance companies are operating
in the best interests of the people of New York State.

This bill would promote accountability by requiring that these captive
insurance companies hold meetings twice a year within the State of New
York and have a majority of the members of their board of directors be
residents of New York State. Currently, only two board members must be
residents of New York. This means that in situations where a captive is
governed by a board of directors consisting of more than 4 members, the
majority of the board could live outside of the state.

This bill would also promote increased transparency for these captive
insurance companies by requiring that the Superintendent of DFS complete
an audit at least once every three years and by authorizing the State
Comptroller to conduct an audit whenever they deem it necessary for the
protection of the interests of the people of New York. Annual reporting
to the legislature, Governor and DFS would also be required to further
ensure proper oversight.

 
LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect one year after it shall have become a law.
Effective immediately, the addition, amendment and/or repeal of any rule
or regulation necessary for the implementation of this act on its effec-
tive date are authorized to be made and completed on or before such
date.

2025-S7934 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7934
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               May 14, 2025
                                ___________
 
 Introduced  by  Sen. HELMING -- 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  providing  exceptions
   to pure captive insurance companies and group captive insurance compa-
   nies, who are public entities, political subdivisions, public authori-
   ties, public benefit corporations, or a subsidiary thereof
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 2 of subsection (b) of section 7003 of the insur-
 ance law, as added by section 146 of part A of chapter 389 of  the  laws
 of 1997, is amended to read as follows:
   (2)  its  board  of  directors holds at least one meeting each year in
 this state; PROVIDED, HOWEVER, IN THE CASE OF ANY PURE CAPTIVE INSURANCE
 COMPANY OR GROUP CAPTIVE INSURANCE COMPANY WHO IS A PUBLIC ENTITY, POLI-
 TICAL SUBDIVISION, PUBLIC AUTHORITY, PUBLIC BENEFIT  CORPORATION,  OR  A
 SUBSIDIARY THEREOF, ITS BOARD OF DIRECTORS SHALL HOLD AT LEAST TWO MEET-
 INGS EACH YEAR IN THIS STATE;
   §  2. Subsection (g) of section 7005 of the insurance law, as added by
 section 146 of part A of chapter 389 of the laws of 1997, is amended  to
 read as follows:
   (g) The board of directors of a captive insurance company incorporated
 in  this  state  shall have at least three members, with at least two of
 the members required to be residents of this state;  PROVIDED,  HOWEVER,
 IN  THE  CASE  OF  ANY  PURE  CAPTIVE INSURANCE COMPANY OR GROUP CAPTIVE
 INSURANCE COMPANY WHO IS A PUBLIC ENTITY, POLITICAL SUBDIVISION,  PUBLIC
 AUTHORITY,  PUBLIC  BENEFIT  CORPORATION,  OR  A SUBSIDIARY THEREOF, THE
 BOARD OF DIRECTORS SHALL HAVE A MAJORITY OF MEMBERS REQUIRED TO BE RESI-
 DENTS OF THIS STATE.
   § 3. Section 7007 of the insurance law, as amended by chapter  435  of
 the laws of 2022, is amended to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11993-01-5
 S. 7934                             2

 
   §  7007.  Examinations. (A) The superintendent may make an examination
 into the affairs of any captive  insurance  company  licensed  to  do  a
 captive insurance business in this state whenever it is deemed necessary
 for  the protection of the interests of the people of this state but the
 superintendent  shall conduct at least one examination every five years.
 Such examinations shall be conducted in accordance with  the  provisions
 of  sections  three  hundred  ten,  three  hundred eleven, three hundred
 twelve of this chapter and subsection (f) of section two hundred six  of
 the financial services law.
   (B) NOTWITHSTANDING SUBSECTION (A) OF THIS SECTION, IN THE CASE OF ANY
 PURE CAPTIVE INSURANCE COMPANY OR GROUP CAPTIVE INSURANCE COMPANY WHO IS
 A PUBLIC ENTITY, POLITICAL SUBDIVISION, PUBLIC AUTHORITY, PUBLIC BENEFIT
 CORPORATION, OR A SUBSIDIARY THEREOF:
   (1)  THE  SUPERINTENDENT SHALL CONDUCT AN EXAMINATION INTO THE AFFAIRS
 OF SUCH PURE OR GROUP CAPTIVE INSURANCE  COMPANY  AT  LEAST  ONCE  EVERY
 THREE YEARS.
   (2)  THE  STATE  COMPTROLLER ALSO IS AUTHORIZED TO MAKE AN EXAMINATION
 INTO THE AFFAIRS OF SUCH COMPANY  IF  THE  STATE  COMPTROLLER  DEEMS  IT
 NECESSARY  AT ANY TIME FOR THE PROTECTION OF THE INTERESTS OF THE PEOPLE
 OF THIS STATE.
   § 4. Section 7006 of the insurance law, as added  by  section  146  of
 part  A  of  chapter  389  of  the  laws  of 1997, is amended to read as
 follows:
   § 7006. Annual report. (A) Every captive insurance company licensed to
 do a captive insurance business in this state shall file with the super-
 intendent:
   [(a)] (1) annually on or before March first, a statement of its finan-
 cial condition and any amendment to the plan of operation at last  year-
 end, verified by the oath of at least two of its executive officers. The
 statement shall be in the form prescribed by the superintendent; and
   [(b)]  (2) annually on or before July first, a report of its financial
 condition at last year-end with an opinion of an  independent  certified
 public accountant; and
   [(c)]  (3)  annually  on  or  before  July  first,  evidence in a form
 prescribed by the superintendent, that the industrial insured or  member
 of  the  industrial  insured  group owning the captive insurance company
 continues to meet the financial standards set forth in subsection (e) of
 section seven thousand two of this article.
   (B) NOTWITHSTANDING SUBSECTION (A) OF THIS SECTION, ANY  PURE  CAPTIVE
 INSURANCE  COMPANY  OR  GROUP  CAPTIVE INSURANCE COMPANY WHO IS A PUBLIC
 ENTITY, POLITICAL SUBDIVISION, PUBLIC AUTHORITY, PUBLIC  BENEFIT  CORPO-
 RATION,  OR  A SUBSIDIARY THEREOF SHALL FILE SUCH ANNUAL REPORT WITH THE
 SUPERINTENDENT, THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE
 SPEAKER OF THE ASSEMBLY, AND THE MINORITY  LEADERS  OF  THE  SENATE  AND
 ASSEMBLY.
   §  5. This act shall take effect one year after it shall have become a
 law. Effective immediately, the addition, amendment and/or repeal of any
 rule or regulation necessary for the implementation of this act  on  its
 effective date are authorized to be made and completed on or before such
 date.

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Senate Bill S7934

Sponsored By

Current Bill Status - In Senate Committee Insurance Committee

Actions

2025-S7934 (ACTIVE) - Details

2025-S7934 (ACTIVE) - Summary

2025-S7934 (ACTIVE) - Sponsor Memo

2025-S7934 (ACTIVE) - Bill Text download pdf

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Sponsored By

Pamela Helming

Current Bill Status - In Senate Committee Insurance Committee

Actions

2025-S7934 (ACTIVE) - Details

2025-S7934 (ACTIVE) - Summary

2025-S7934 (ACTIVE) - Sponsor Memo

2025-S7934 (ACTIVE) - Bill Text download pdf

Comments