NY State Senate Bill 2017-S697

Archive: Last 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to insurance
Jan 04, 2017	referred to insurance

co-Sponsors

2017-S697 (ACTIVE) - Details

Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §7120, Ins L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S7640
2011-2012: S3366
2013-2014: S3543
2015-2016: S1434
2019-2020: S3504
2021-2022: S3773
2023-2024: S2792

2017-S697 (ACTIVE) - Summary

Relates to the redomestication of insurance companies.

2017-S697 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S697

 TITLE OF BILL :  An act to amend the insurance law, in relation to
the redomestication of insurance companies

 PURPOSE :

To provide for the more efficient regulation of insurance entities by
more closely conforming New York law governing the redomestication of
insurance companies to the National Association of Insurance
Commissioners (NAIC) Redomestication Model Act.

 SUMMARY OF PROVISIONS :

This bill would amend § 7120 to the Insurance Law by adding a new
subsection (c) and subsection (h) to more closely conform New York law
governing the redomestication of insurance companies to the NAIC
Redomestication Model Bill. Specifically, this bill would include
provisions governing the redomestication of a domestic insurance
company to another state upon the approval of the Superintendent of
Insurance. Upon approval of redomestication by the Superintendent, the
transferring company would be authorized to transact business in New
York State as a foreign company, provided that the insurer meets all
of the requirements for operation as a foreign company. Such company
could continue to utilize policy forms previously approved by the
Superintendent for their use as a domestic insurer, with the proper

endorsements.

 EXISTING LAW :

Currently, § 7120 only contains the provisions of the NAIC Model
relating to the transfer to this state of the corporate domicile of an
authorized foreign company.

 JUSTIFICATION :

This bill will improve the efficiency of the regulation and oversight
of affiliated groups of insurance companies domiciled in multiple
states and will help to preserve the continuation of state regulation
of insurance. Forty-one states have adopted a version of the NAIC
Redomestication Model Act, which provides for a redomestication
process which is efficient, effective and not unduly cumbersome. New
York State has not adopted the provisions of the Model Act relating to
the transfer of a domestic insurer to another state and, thus, under
current New York law, the process for consolidating affiliates is a
very difficult, time consuming and cumbersome one. By adopting the
balance of the NAIC Redomestication Model Bill, this legislation will
also further uniformity among states relative to the regulation of
insurance companies and would make the current state-based system for
the regulation of insurance companies more efficient. As the threat of
the federal regulation of the insurance industry continues to loom, it
is important that states demonstrate their ability to work together
and adopt uniform laws where such laws would provide for the more
effective regulation of insurance companies. The enactment of this
legislation would further this goal.

 LEGISLATIVE HISTORY :

S.1434 of 2015-16;
S.3543 of 2013-14;
S.3366 of 2011-12
 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
Immediately.

2017-S697 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    697
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              January 4, 2017
                                ___________
 
 Introduced  by  Sen.  SEWARD -- 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 the redomestication of
   insurance companies
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Section 7120 of the insurance law, as amended by chapter 48
 of the laws of 2009, is amended to read as follows:
   §  7120.  Redomestication  of [foreign] insurance companies. (a) Defi-
 nitions.  In this section:
   (1) "Redomestication" means the transfer to this state of  the  corpo-
 rate domicile of an authorized foreign company OR THE TRANSFER FROM THIS
 STATE  OF  THE CORPORATE DOMICILE OF A DOMESTIC COMPANY, as provided for
 in this section.
   (2) "Transferring company"  means  any  authorized  [foreign]  company
 seeking redomestication.
   (b) A transferring company TRANSFERRING TO THIS STATE shall:
   (1)  file  with  the  superintendent  a  certificate  in  such form as
 prescribed by the superintendent signed  by  the  insurance  supervisory
 official  of  the  state  where  such  transferring company is domiciled
 approving the proposed redomestication and confirming that upon redomes-
 tication the transferring company shall no longer be subject as a domes-
 tic company to the requirements of its current state of domicile;
   (2) comply with the applicable requirements of this chapter  regarding
 the organization and licensing of a domestic company of the same type;
   (3)  demonstrate  to  the satisfaction of the superintendent that upon
 redomestication, the transferring company will be in compliance with the
 requirements of this chapter and any regulations promulgated  thereunder
 applicable to a domestic company of the same type;
   (4)  submit  to the superintendent all documents and filings necessary
 to comply with paragraphs two and three of this subsection; and

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

                                                            LBD04770-01-7

 S. 697                              2
 
   (5) submit new policy forms to the superintendent for use after  redo-
 mestication, if so ordered by the superintendent, or use existing policy
 forms with appropriate endorsements if allowed by, and under such condi-
 tions as approved by, the superintendent.
   (c) A TRANSFERRING COMPANY TRANSFERRING FROM THIS STATE:
   (1)  UPON THE APPROVAL OF THE SUPERINTENDENT, TRANSFER ITS DOMICILE TO
 ANY OTHER STATE IN WHICH IT IS ADMITTED  TO  TRANSACT  THE  BUSINESS  OF
 INSURANCE,  AND  UPON  SUCH  A  TRANSFER IT SHALL CEASE TO BE A DOMESTIC
 COMPANY, AND SHALL BE AUTHORIZED IN  THIS  STATE,  IF  QUALIFIED,  AS  A
 FOREIGN  INSURER.   THE SUPERINTENDENT SHALL APPROVE THE TRANSFER UNLESS
 HE OR SHE DETERMINES THE TRANSFER IS NOT IN THE INTEREST OF THE  POLICY-
 HOLDERS OF THIS STATE; AND
   (2)  MAY CONTINUE ISSUING POLICY FORMS APPROVED BEFORE REDOMESTICATION
 PURSUANT TO SECTION THREE THOUSAND TWO HUNDRED ONE OF THIS CHAPTER  WITH
 SUCH  ENDORSEMENT, IF ANY, AS THE SUPERINTENDENT DETERMINES IS NEEDED TO
 REFLECT THE REDOMESTICATION.
   (D) After the transferring company has complied with the provisions of
 this section, the superintendent may, in  accordance  with  section  one
 thousand  one  hundred  two  of  this chapter issue a new license to the
 transferring company to reflect the change in  its  state  of  corporate
 domicile.  The  duration of its license shall be governed by section one
 thousand one hundred three of this chapter. Upon issuance  of  such  new
 license  the redomestication shall become effective and the transferring
 company  shall  be  a  domestic  company  OR  A  FOREIGN   COMPANY,   AS
 APPROPRIATE.
   [(d)] (E) Simultaneous with the redomestication taking effect:
   (1) all materials and documents that were submitted to the superinten-
 dent  by  the  transferring company pursuant to the requirements of this
 section shall be filed in the office of the  superintendent  SUBJECT  TO
 SUBSECTION (H) OF THIS SECTION; and
   (2)  FOR A TRANSFERRING COMPANY TRANSFERRING TO THIS STATE, the super-
 intendent shall, in accordance with section one thousand two hundred one
 or other applicable provisions of this chapter issue to  the  company  a
 certified  copy  of its new declaration and charter and a certificate of
 incorporation. The new charter  of  the  company  may  provide  for  the
 continuation  of the corporate existence of the transferring company and
 in such case the original date  of  incorporation  of  the  transferring
 company shall be the date of incorporation of the new domestic company.
   [(e)]  (F)  All  outstanding  insurance  policies  and contracts shall
 remain in full force and effect with no change and need not be  endorsed
 as  to  the  new name of the company, if any, or its new location unless
 ordered by the superintendent.
   [(f)] (G) All agents' appointments  and  licenses,  rates,  and  other
 items that the superintendent allows, existing at the time of redomesti-
 cation,  shall  continue  in  full  force  and effect in accordance with
 applicable provisions of this chapter.
   (H) THE SUPERINTENDENT SHALL KEEP THE CONTENTS OF ANY REPORT OR INFOR-
 MATION THE SUPERINTENDENT REQUIRES PURSUANT TO THIS SECTION, AND THAT IS
 NOT OTHERWISE REQUIRED TO BE SET FORTH IN A PUBLICLY AVAILABLE REPORT OR
 FILING, CONFIDENTIAL IN ACCORDANCE WITH THE PROVISIONS OF SUBSECTION (C)
 OF SECTION ONE THOUSAND FIVE HUNDRED FOUR OF THIS CHAPTER.
   § 2. This act shall take effect immediately.

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Senate Bill S697

Sponsored By

Archive: Last Bill Status - In Senate Committee Insurance Committee

co-Sponsors

2017-S697 (ACTIVE) - Details

2017-S697 (ACTIVE) - Summary

2017-S697 (ACTIVE) - Sponsor Memo

2017-S697 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S697

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Sponsored By

James L. Seward

Archive: Last Bill Status - In Senate Committee Insurance Committee

co-Sponsors

John J. Flanagan

2017-S697 (ACTIVE) - Details

2017-S697 (ACTIVE) - Summary

2017-S697 (ACTIVE) - Sponsor Memo

2017-S697 (ACTIVE) - Bill Text download pdf

Comments