NY State Senate Bill 2019-S3504

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 08, 2020	referred to insurance
Feb 08, 2019	referred to insurance

co-Sponsors

2019-S3504 (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
2017-2018: S697
2021-2022: S3773
2023-2024: S2792

2019-S3504 (ACTIVE) - Summary

Relates to the redomestication of insurance companies.

2019-S3504 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S3504

SPONSOR: BRESLIN
 
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 Commission-
ers (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 Redo-
mestication 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 relat-
ing 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 insur-
ance. Forty-one states have adopted a version of the NAIC Redomestica-
tion 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 Redo-
mestication 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 demon-
strate their ability to work together and adopt uniform laws where such
laws would provide for the more effective regulation of insurance compa-
nies. The enactment of this legislation would further this goal.

 
LEGISLATIVE HISTORY:

S.697 of 2017-18;
S.1434 of 2015-16;
S.3543 of 2013-14;
S.3366 of 2011-12

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
Immediately.

2019-S3504 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3504
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 8, 2019
                                ___________
 
 Introduced  by Sens. BRESLIN, SEWARD, FLANAGAN -- read twice and ordered
   printed, and when printed to be committed to the Committee  on  Insur-
   ance
 
 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;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09654-01-9

 S. 3504                             2
 
   (4) submit to the superintendent all documents and  filings  necessary
 to comply with paragraphs two and three of this subsection; and
   (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 S3504

Sponsored By

Archive: Last Bill Status - In Senate Committee Insurance Committee

co-Sponsors

2019-S3504 (ACTIVE) - Details

2019-S3504 (ACTIVE) - Summary

2019-S3504 (ACTIVE) - Sponsor Memo

2019-S3504 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S3504

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Sponsored By

Neil D. Breslin

Archive: Last Bill Status - In Senate Committee Insurance Committee

co-Sponsors

James L. Seward

John J. Flanagan

2019-S3504 (ACTIVE) - Details

2019-S3504 (ACTIVE) - Summary

2019-S3504 (ACTIVE) - Sponsor Memo

2019-S3504 (ACTIVE) - Bill Text download pdf

Comments