Senate Bill S8259

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8259
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               May 28, 2025
                                ___________
 
 Introduced  by  Sen. SKOUFIS -- 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 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.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11934-01-5
              

 S. 8259                             2
 
   § 2. Section 7407 of the insurance law, as amended by chapter  169  of
 the laws of 1990, is amended to read as follows:
   §  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.