Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|
---|---|
Jun 09, 2010 |
reported referred to rules |
Apr 16, 2010 |
referred to insurance |
Assembly Bill A10712
2009-2010 Legislative Session
Sponsored By
MORELLE
Archive: Last Bill Status - In Assembly 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
Actions
2009-A10712 (ACTIVE) - Details
2009-A10712 (ACTIVE) - Sponsor Memo
BILL NUMBER:A10712 TITLE OF BILL: An act to amend the insurance law, in relation to mort- gage guaranty insurance and reinsurance and policyholders' surplus PURPOSE: To update the Insurance Law to more accurately reflect current mortgage guaranty insurance industry circumstances and practices, and to authorize the Superintendent of Insurance to suspend the risk to capital requirement for writing new mortgage guaranty insurance risks. SUMMARY OF PROVISIONS: Section 1 of the bill amends paragraph (1) of subsection (b) of section 6502 of the insurance law to grant the Super- intendent of Insurance the power to suspend the requirement for a mort- gage guaranty insurer to maintain a minimum policyholder surplus in relation to its outstanding risk in order for the insurer to write new business. The temporary suspension is limited to two years per each exemption authorized. Pursuant to the bill, consecutive waivers are permitted for mortgage insurers whose policyholder surplus does not exceed the 25 to 1 liability ratio after the initial waiver period, but such waivers may not exceed a total of four years. Section 2 of the bill provides, for an immediate effective date. JUSTIFICATION: Mortgage guaranty insurance companies are proscribed from writing business when the ratio of.their total policy liability to their policyholder's surplus exceeds a ratio of 25 to 1. This standard
2009-A10712 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 10712 I N A S S E M B L Y April 16, 2010 ___________ Introduced by M. of A. MORELLE -- read once and referred to the Commit- tee on Insurance AN ACT to amend the insurance law, in relation to mortgage guaranty insurance and reinsurance and policyholders' surplus THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph 1 of subsection (b) of section 6502 of the insur- ance law, as amended by chapter 517 of the laws of 1989, is amended to read as follows: (1) EXCEPT AS MAY BE OTHERWISE PERMITTED BY THE SUPERINTENDENT UPON A FINDING THAT IT WOULD NOT BE PREJUDICIAL TO THE INTERESTS OF THE PEOPLE OF THIS STATE, have outstanding a total liability under its aggregate insurance policies exceeding twenty-five times its policyholders' surplus, computed on the basis of the company's liability under its election as provided in subsection (c) of section six thousand five hundred three of this article. Total liability shall be calculated net of applicable reinsurance. [No] SUBJECT TO SUCH EXCEPTION PERMITTED BY THE SUPERINTENDENT, NO company which has outstanding total liability exceeding twenty-five times its policyholders' surplus shall transact new business until its total liability no longer exceeds twenty-five times its policyholders' surplus. THE TERM OF EACH EXCEPTION PERMITTED BY THE SUPERINTENDENT FOR A MORTGAGE INSURER SHALL NOT EXCEED TWO YEARS AND CONSECUTIVE EXCEPTIONS PERMITTED FOR A MORTGAGE INSURER WITHOUT AN INTERVENING ONE-YEAR PERIOD OF COMPLIANCE WITH THE LIABILITY LIMIT IN THIS SUBSECTION SHALL NOT EXCEED A TOTAL OF FOUR YEARS; S 2. This act shall take effect immediately. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD14953-03-0
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