S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10229
 
                           I N  A S S E M B L Y
 
                               May 10, 2022
                                ___________
 
 Introduced  by  COMMITTEE  ON  RULES -- (at request of M. of A. Niou) --
   read once and referred to the Committee on Insurance
 
 AN ACT to amend the insurance  law,  in  relation  to  making  technical
   corrections  to  law references and eliminates certain gender-specific
   language relating to the superintendent of insurance
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Paragraph 3 of subsection (b) of section 314 of the insur-
 ance law is amended to read as follows:
   (3) to make an examination into the affairs of every system, including
 compliance with the standards  established  pursuant  to  paragraph  two
 [hereof]  OF  THIS SECTION, at least once in every five years in accord-
 ance with the provisions of sections three hundred  ten,  three  hundred
 eleven  and  three  hundred  twelve  of  this article and to recover the
 expenses of such examination from such system  in  accordance  with  the
 provisions  of  SUBSECTION  (F)  OF section [three hundred thirteen] TWO
 HUNDRED SIX of [this article] THE FINANCIAL SERVICES LAW.    A  copy  of
 each  report  on  examination  as  filed  for public inspection shall be
 forwarded to the governor, state comptroller and legislature and, in the
 case of systems of the city of New York, to the mayor, city  comptroller
 and president of the city council.
   §  2.  Paragraph  1 of subsection (c) of section 1218 of the insurance
 law is amended to read as follows:
   (1)  Whenever  the  superintendent  believes  this  section  is  being
 violated, [he] THE SUPERINTENDENT shall serve upon the insurer or insur-
 ers and the director or directors, as the case may be, a notice pursuant
 to  section  three  hundred [three] FOUR of [this chapter] THE FINANCIAL
 SERVICES LAW of a hearing before the superintendent to be held not  less
 than thirty days after such service and requiring such insurer or insur-
 ers  and  such  director or directors, as the case may be, to show cause
 why an order should not be made by  the  superintendent  directing  such
 insurer  or insurers and such director or directors, as the case may be,
 to cease and desist from such violation.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD15787-02-2
              

 A. 10229                            2
 
   § 3. Paragraph 2 of subsection (h) of section 2108  of  the  insurance
 law,  as  amended by chapter 257 of the laws of 1995, is amended to read
 as follows:
   (2)  Notwithstanding the requirement of subsection (f) of this section
 that each individual applicant for an independent adjuster's license  or
 sub-license  shall take and pass a personal written examination in order
 to satisfy the superintendent as to trustworthiness and competency,  the
 superintendent may in the superintendent's discretion, if satisfied that
 the  person applying for such temporary permit has in all other respects
 met the requirements of this section with respect to  the  licensing  of
 independent  adjusters  and  is  qualified by training and experience to
 adjust claims as an employee of a licensed independent adjuster, author-
 ized insurer, or any adjustment bureau or association  owned  and  main-
 tained  by  insurers  to adjust or investigate motor vehicle body damage
 losses, issue such temporary permit to be effective for such  period  of
 time  as  the superintendent may specify therein but, in no event, for a
 period in excess of one hundred  twenty  days.  The  superintendent  may
 summarily suspend or revoke any temporary permit issued pursuant to this
 subsection  upon  ten [days] DAYS' notice in writing to the permittee of
 the superintendent's intention to do so, which notice shall be given  in
 accordance  with the applicable provisions of subsections (a) and (d) of
 section three hundred [three]  FOUR  of  [this  chapter]  THE  FINANCIAL
 SERVICES LAW.
   §  4.  Paragraph  3 of subsection (f) of section 2110 of the insurance
 law, as amended by chapter 687 of the laws of 2003, is amended  to  read
 as follows:
   (3) Before revoking the license of any non-resident insurance producer
 in accordance with this section, the superintendent shall give ten days'
 notice  in  writing to such producer of the action proposed to be taken,
 which notice shall be given in accordance with the applicable provisions
 of subsections (a) and (d) of section  three  hundred  [three]  FOUR  of
 [this chapter] THE FINANCIAL SERVICES LAW.
   § 5. Section 2405 of the insurance law is amended to read as follows:
   §  2405.  Hearings  and  reports  on defined violations and determined
 violations. (a) Whenever the superintendent has reason to believe that a
 person has committed or is committing a defined violation  or  has  been
 engaged  in  or  is engaging in any method of competition, or any act or
 practice, [which]  could  become  a  determined  violation  and  that  a
 proceeding  thereon  would  be  in  the interest of the public, [he] THE
 SUPERINTENDENT shall serve upon the person in  the  manner  provided  by
 section  three  hundred  [three]  FOUR  of  [this chapter] THE FINANCIAL
 SERVICES LAW, a statement of the charges and notice of a hearing  to  be
 held  at  a time not less than ten days after the date of service of the
 notice and at the place fixed in the notice.
   (b) The person shall have an opportunity at the hearing  to  be  heard
 personally  or  by  counsel, and, in the case of a defined violation, to
 show cause why an order should not be made by the superintendent requir-
 ing the person to cease and desist from the charged  defined  violation.
 Upon  good cause shown, the superintendent shall permit anyone to inter-
 vene, appear and be heard at the hearing personally or by counsel.
   (c) After the hearing, the superintendent shall make a written  report
 containing  [his]  THE SUPERINTENDENT'S findings, and shall serve a copy
 of the report upon the person and any intervenor.
   § 6. Subsection (e) of section 4308 of the insurance law,  as  amended
 by chapter 107 of the laws of 2010, is amended to read as follows:
 A. 10229                            3
 
   (e)  Notwithstanding  any  other  provision of law, the superintendent
 shall have the power to require  independent  management  and  financial
 audits of corporations subject to the provisions of this article whenev-
 er  in  the judgment of the superintendent, losses sustained by a corpo-
 ration jeopardize its ability to provide meaningful coverage at afforda-
 ble rates or when such audit would be necessary to protect the interests
 of  subscribers.  The  audit  shall  include,  but not be limited to, an
 investigation of the corporation's provision of benefits to senior citi-
 zens,  individual  and  family,  and  small  group  and  small  business
 subscribers  in  relation  to  the needs of those subscribers. The audit
 shall also include an evaluation of the efficiency of the  corporation's
 management,  particularly with respect to lines of business [which] THAT
 are experiencing losses. In  every  case  in  which  the  superintendent
 chooses  to require an audit provided for in this subsection, the super-
 intendent shall have the authority to  select  the  auditor.  Any  costs
 incurred  as  a  result  of  the  operation  of this subsection shall be
 assessed on all domestic insurers in the same manner as provided for  in
 section  [three]  TWO  hundred  [thirty-two]  SIX  of [this chapter] THE
 FINANCIAL SERVICES LAW.
   § 7. Subsection (b) of section 4315 of the insurance law is amended to
 read as follows:
   (b) Except as provided in subsection (a) [hereof] OF THIS SECTION, all
 orders of the superintendent and all final orders or  decisions  of  the
 commissioner  of  health made under the provisions of this article shall
 be subject to judicial review  as  provided  in  section  three  hundred
 [twenty-six] EIGHT of [this chapter] THE FINANCIAL SERVICES LAW.
   § 8. Section 4521 of the insurance law is amended to read as follows:
   §  4521.  Grounds  for revocation or suspension of license. The super-
 intendent may revoke or suspend the license to do business in this state
 of any domestic, foreign or alien society, if, after notice to and hear-
 ing of such society in accordance with sections  three  hundred  [three]
 FOUR,  three  hundred  [four] FIVE and three hundred [five] SIX of [this
 chapter] THE FINANCIAL SERVICES LAW, [he] THE SUPERINTENDENT  finds  any
 one or more of the following grounds therefor:
   (a)  that  such  society  has exceeded its powers under its charter or
 under its license to do business;
   (b) that such society has failed to comply  with  any  requirement  of
 this chapter applicable thereto;
   (c)  that  such  society  is conducting its insurance business fraudu-
 lently or in a way hazardous  to  its  members,  its  creditors  or  the
 public;
   (d) that such society is not carrying out its contracts in good faith;
 and
   (e) in the case of a foreign or alien society, that the society is not
 conforming  in  substance to all of the requirements imposed on domestic
 societies, and in such a case, the revocation may be in addition to,  or
 in  lieu  of, a proceeding under article seventy-four of this chapter in
 the circumstances specified in section four thousand five hundred  nine-
 teen of this article.
   § 8. Section 4521 of the insurance law is amended to read as follows:
   §  4521.  Grounds  for revocation or suspension of license. The super-
 intendent may revoke or suspend the license to do business in this state
 of any domestic, foreign or alien society, if, after notice to and hear-
 ing of such society in accordance with sections  three  hundred  [three]
 FOUR,  three  hundred  [four] FIVE and three hundred [five] SIX of [this
 A. 10229                            4

 chapter] THE FINANCIAL SERVICES LAW, [he] THE SUPERINTENDENT  finds  any
 one or more of the following grounds therefor:
   (a)  that  such  society  has exceeded its powers under its charter or
 under its license to do business;
   (b) that such society has failed to comply  with  any  requirement  of
 this chapter applicable thereto;
   (c)  that  such  society  is conducting its insurance business fraudu-
 lently or in a way hazardous  to  its  members,  its  creditors  or  the
 public;
   (d) that such society is not carrying out its contracts in good faith;
 and
   (e) in the case of a foreign or alien society, that the society is not
 conforming  in  substance to all of the requirements imposed on domestic
 societies, and in such a case, the revocation may be in addition to,  or
 in  lieu  of, a proceeding under article seventy-four of this chapter in
 the circumstances specified in section four thousand five hundred  nine-
 teen of this article.
   § 9. Subsection (a) of section 4523 of the insurance law is amended to
 read as follows:
   (a)  Any  person,  firm, association or corporation who or which shall
 solicit a member or members for, or in any way  assist  in  procuring  a
 member  or members for, or collect payments or dues for or in connection
 with the membership of, any fraternal benefit society  [which]  THAT  is
 not  licensed  to  do  business  in  this  state and [which] THAT is not
 exempted under the provisions of  section  four  thousand  five  hundred
 twenty-two  of  this  article  shall  be guilty of a misdemeanor, and in
 addition, such person, firm, association or corporation shall be  liable
 to  a  penalty of one hundred dollars for each person so solicited or so
 procured to become a member in such unauthorized  society,  and  may  in
 addition  to  either  of  the foregoing, be enjoined from doing any such
 unlawful acts, in the manner specified in section three  hundred  [twen-
 ty-seven] NINE of [this chapter] THE FINANCIAL SERVICES LAW.
   § 10. Subsection (b) of section 4711 of the insurance law, as added by
 chapter 689 of the laws of 1994, is amended to read as follows:
   (b) In connection with such examinations, the superintendent may exer-
 cise the powers set forth in sections [three hundred four, three hundred
 five,]  three hundred six, three hundred eight, three hundred ten, three
 hundred eleven, AND three hundred twelve[, and three  hundred  thirteen]
 of  this  chapter  AND  SUBSECTION  (F)  OF  SECTION TWO HUNDRED SIX AND
 SECTIONS THREE HUNDRED FIVE AND  THREE  HUNDRED  SIX  OF  THE  FINANCIAL
 SERVICES  LAW,  and  may  also  require special reports from a municipal
 cooperative health benefit plan as specified in  section  three  hundred
 eight of this chapter.
   § 11. Section 5409 of the insurance law is amended to read as follows:
   § 5409. Examinations. The superintendent may, in accordance with arti-
 cle  three  of this chapter, make an examination into the affairs of the
 association whenever [he] THE SUPERINTENDENT  deems  it  expedient.  The
 expenses  of every such examination shall be borne and paid by the asso-
 ciation in the manner prescribed by SUBSECTION (F)  OF  section  [three]
 TWO hundred [thirteen] SIX of [this chapter] THE FINANCIAL SERVICES LAW.
   § 12. Subsection (a) of section 5603 of the insurance law, as added by
 chapter 266 of the laws of 1986, is amended to read as follows:
   (a) There is established within the department an arbitration adminis-
 tration  fund  which shall be considered to be an expense of the depart-
 ment and shall be funded by order of  the  superintendent,  pursuant  to
 section  [three]  TWO  hundred  [thirty-two]  SIX  of [this chapter] THE
 A. 10229                            5
 
 FINANCIAL SERVICES LAW in such amount as shall be sufficient  to  defray
 the actual administrative expenses of the department and the arbitration
 administrator  for the projected number of arbitration proceedings for a
 [twelve  month] TWELVE-MONTH period, after taking into consideration any
 excessive or insufficient amounts from  the  previous  assessments,  any
 appropriation  of  public funds for this purpose and any funds collected
 from claimants participating in the arbitration. If the amount  assessed
 for  any  [twelve  month]  TWELVE-MONTH period is insufficient to defray
 expenses during that period, a further assessment may be ordered by  the
 superintendent. The arbitration administrator shall establish reasonable
 fees  for  claimants  who participate in the arbitration, subject to the
 approval of the superintendent.
   § 13. Subsection (a) of section 6707 of the insurance law, as added by
 chapter 598 of the laws of 2000, is amended to read as follows:
   (a) Every nonprofit property/casualty insurance company subject to the
 provisions of this article shall be exempt from any fees, taxes, special
 ad valorem levies or assessments of any kind, including, but not limited
 to, franchise taxes, sales taxes or other taxes, upon or with respect to
 any property owned by it or under its jurisdiction,  control  or  super-
 vision,  or upon the uses thereof, or upon or with respect to its activ-
 ities or operations in furtherance of the powers conferred  upon  it  by
 this  article,  or  upon or with respect to any revenues or other income
 received by the nonprofit property/casualty  insurance  company,  except
 that every nonprofit property/casualty insurance company licensed pursu-
 ant  to  this  article  shall be subject to the assessment upon domestic
 insurers under section [three] TWO hundred  [thirty-two]  SIX  of  [this
 chapter]  THE  FINANCIAL  SERVICES  LAW,  the assessments upon insurance
 carriers under sections one hundred fifty-one and  two  hundred  twenty-
 eight  of the workers' compensation law and all special fund assessments
 upon insurance carriers under the workers' compensation law.
   § 14. Subsection (b) of section 7001 of the insurance law, as added by
 section 146 of part A of chapter 389 of the laws of 1997, is amended  to
 read as follows:
   (b)  In  addition  to  the provisions of this article and this chapter
 specifically referred to in this article, the  following  provisions  of
 this chapter shall apply to captive insurance companies:
   (1) article one of this chapter, pertaining to general provisions;
   (2)  sections  three  hundred  one,  [three hundred two, three hundred
 three, three hundred four, three hundred five,] three hundred six, three
 hundred eight, three hundred ten, three hundred  eleven,  three  hundred
 twelve[, three hundred thirteen, three hundred twenty-six, three hundred
 twenty-seven,]  AND  three hundred twenty-nine[, and three hundred thir-
 ty-two] of this chapter AND SECTIONS  TWO  HUNDRED  SIX,  THREE  HUNDRED
 THREE,  THREE HUNDRED FOUR, THREE HUNDRED FIVE, THREE HUNDRED SIX, THREE
 HUNDRED EIGHT, AND THREE HUNDRED NINE OF  THE  FINANCIAL  SERVICES  LAW,
 pertaining to certain administrative and procedural provisions; and
   (3)  article  seventy-four  OF  THIS  CHAPTER, pertaining to rehabili-
 tation, liquidation, conservation and dissolution of insurers.
   § 15. Paragraph 4 of subsection (c) of section 7003 of  the  insurance
 law,  as  added  by  section 146 of part A of chapter 389 of the laws of
 1997, is amended to read as follows:
   (4) In order to provide for the review of  the  application  submitted
 pursuant  to  this subsection in a timely manner, the superintendent may
 engage such other qualified persons and services as  may  be  necessary.
 Prior  to  retaining  any  such persons and services, the superintendent
 shall notify the applicant and provide an estimate of the cost  of  such
 A. 10229                            6
 
 services.  The  superintendent  shall  recover  such costs in the manner
 prescribed in SUBSECTION (F) OF section [three] TWO  hundred  [thirteen]
 SIX of [this chapter] THE FINANCIAL SERVICES LAW.
   §  16.  Section  7007 of the insurance law, as added by section 146 of
 part A of chapter 389 of the  laws  of  1997,  is  amended  to  read  as
 follows:
   §  7007.    Examinations.   The superintendent may make an examination
 into the affairs of any captive  insurance  company  licensed  to  do  a
 captive insurance business in this state whenever it is deemed necessary
 for  the protection of the interests of the people of this state but the
 superintendent shall conduct at least one examination every five  years.
 Such  examinations  shall be conducted in accordance with the provisions
 of sections three hundred  ten,  three  hundred  eleven,  three  hundred
 twelve  [and  three hundred thirteen] of this chapter AND SUBSECTION (F)
 OF SECTION TWO HUNDRED SIX OF THE FINANCIAL SERVICES LAW.
   § 17. Subsection (x) of section 7312 of the insurance law, as added by
 chapter 683 of the laws of 1988, is amended to read as follows:
   (x) Effect on department personnel. Notwithstanding subsection (a)  of
 section  [two]  FIVE  hundred [four] ONE of [this chapter] THE FINANCIAL
 SERVICES LAW, the superintendent, any deputy or other  employee  of  the
 department  shall  be  permitted  to  receive  and  exercise  any rights
 received as a policyholder in connection with a reorganization.
   § 18. Subparagraph (C) of paragraph 1 of  subsection  (b)  of  section
 7910  of the insurance law, as added by chapter 614 of the laws of 1997,
 is amended to read as follows:
   (C) At the hearing, the burden shall be on the superintendent to  show
 why  the  order  issued  pursuant  to  this  paragraph is justified. The
 provisions of section three hundred [four] FIVE of  [this  chapter]  THE
 FINANCIAL  SERVICES  LAW  shall  apply to a hearing requested under this
 paragraph.
   § 19. Paragraph 1 of subsection (b) of section 9109 of  the  insurance
 law is amended to read as follows:
   (1)  If  a  company, association or person fails within the prescribed
 time to file any report or statement required  by  this  article  or  by
 section  two  thousand  one hundred eighteen of this chapter, or to make
 any payment due under the provisions of this article or sections  [three
 hundred thirteen, three hundred thirty-two,] three hundred thirty-three,
 one  thousand  one  hundred  twelve,  two thousand one hundred five, two
 thousand one hundred eighteen or four thousand  four  hundred  seven  of
 this  chapter  OR SECTION TWO HUNDRED SIX OF THE FINANCIAL SERVICES LAW,
 the superintendent may order such company, association or person to  pay
 to the people of this state the following penalties:
   (A)  not  less than one hundred nor more than five hundred dollars for
 each and every failure to file a report or  statement  within  the  time
 prescribed;
   (B)  five  percent  of the principal amount of any payment due plus an
 additional one percent of said sum for the second and subsequent  months
 or fractions thereof during which payment has not been made.
   § 20. This act shall take effect immediately.