Assembly Bill A8903

Signed By Governor
2011-2012 Legislative Session

Makes technical corrections relating to the treatment of qualified financial contracts in an insurance insolvency proceeding

download bill text pdf

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Archive: Last Bill Status - Signed by Governor

  • 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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2011-A8903 (ACTIVE) - Details

See Senate Version of this Bill:
S6131
Law Section:
Insurance Law
Laws Affected:
Amd ยง7437, Ins L

2011-A8903 (ACTIVE) - Summary

Makes technical corrections relating to the treatment of qualified financial contracts in an insurance insolvency proceeding affecting a domestic, foreign or alien insurer.

2011-A8903 (ACTIVE) - Bill Text download pdf 

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  8903

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 4, 2012
                               ___________

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  making  technical
  corrections thereto

  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 7437 of the insur-
ance law, as added by chapter 600 of the laws of  2011,  is  amended  to
read as follows:
  (1) Notwithstanding any other provision of this article, including any
other   provision   of  this  article  permitting  the  modification  of
contracts, or other law of this state, no  person  shall  be  stayed  or
prohibited  from exercising: (A) a contractual right to cause the termi-
nation, liquidation, acceleration or close out of any  obligation  under
OR  IN  CONNECTION  WITH  a  netting  agreement  or  qualified financial
contract with an insurer, other than an insurer licensed to write finan-
cial guaranty insurance,  because  of:  (i)  the  insolvency,  financial
condition or default of the insurer at any time, provided that the right
is enforceable under applicable law other than this article; or (ii) the
commencement of any proceeding under this article; (B) any right under a
security arrangement relating to one or more netting agreements or qual-
ified  financial  contracts,  OTHER  THAN  A  RIGHT  AGAINST  AN INSURER
LICENSED TO WRITE FINANCIAL GUARANTY INSURANCE; or (C)  subject  to  any
provision of subsection (b) of section seven thousand four hundred twen-
ty-seven of this article, any right to offset or net out any termination
value,  payment amount, or other transfer obligation arising under or in
connection with one or more qualified financial contracts, OTHER THAN  A
RIGHT AGAINST AN INSURER LICENSED TO WRITE FINANCIAL GUARANTY INSURANCE,
where  the  counterparty or its guarantor is organized under the laws of
the United States, a state, or a foreign jurisdiction  approved  by  the
Securities  Valuation  Office  of  the National Association of Insurance
Commissioners as eligible for netting.
  S 2. This act shall take effect on the  same  date  and  in  the  same
manner as chapter 600 of the laws of 2011 took effect.

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