A08712 Summary:

BILL NOA08712
 
SAME ASSAME AS S07704
 
SPONSORMcDonald
 
COSPNSR
 
MLTSPNSR
 
Amd 6109, Ins L (as proposed in S.4112 & A.3466)
 
Authorizes the return of any operating reserve balances of members of a municipal insurance reciprocal upon the municipal reciprocal insurer's demonstration that it will retain sufficient surplus to support its obligations and writings.
Go to top    

A08712 Actions:

BILL NOA08712
 
01/11/2022referred to insurance
02/16/2022reported
02/17/2022advanced to third reading cal.442
02/28/2022substituted by s7704
 S07704 AMEND= BRESLIN
 01/07/2022REFERRED TO RULES
 01/10/2022ORDERED TO THIRD READING CAL.32
 01/11/2022PASSED SENATE
 01/11/2022DELIVERED TO ASSEMBLY
 01/11/2022referred to insurance
 02/28/2022substituted for a8712
 02/28/2022ordered to third reading cal.442
 02/28/2022passed assembly
 02/28/2022returned to senate
 03/18/2022DELIVERED TO GOVERNOR
 03/18/2022SIGNED CHAP.148
Go to top

A08712 Committee Votes:

INSURANCE Chair:Cahill DATE:02/16/2022AYE/NAY:22/0 Action: Favorable
CahillAyeBlankenbushAye
CookAyeHawleyAye
PretlowAyeByrneAye
RiveraExcusedSchmittAye
CymbrowitzAyePalmesanoAye
LavineAyeDiPietroAbsent
SteckAyeGandolfoAye
DilanAye
HunterAye
NiouExcused
RosenthalAye
SternAye
McDonaldAye
JacobsonAye
WilliamsAye
MeeksAye
ForrestAye
AndersonAye

Go to top

A08712 Floor Votes:

There are no votes for this bill in this legislative session.
Go to top

A08712 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A8712
 
SPONSOR: McDonald
  TITLE OF BILL: An act to amend the insurance law, in relation to authorizing the return of any operating reserve balances of members of a municipal insurance reciprocal   PURPOSE OR GENERAL IDEA OF BILL: The purpose of this bill is to make clarifying changes to Chapter 649 of the Laws of 2021 to ensure that the Superintendent of Financial Services may authorize the return of subscribing member operating reserve balances to members of a municipal insurance reciprocal upon such insur- er's demonstration that it will retain sufficient surplus to support its obligations and writings.   SUMMARY OF SPECIFIC PROVISIONS: The bill amends paragraph 3 of subsection (C) of section 6109 of the insurance law to allow municipal reciprocal insurers to authorize the return of any outstanding subscriber operating reserve balance only upon such insurer's demonstration that it will retain sufficient surplus to support its obligations and writings.   JUSTIFICATION: The New York Municipal Insurance Reciprocal (NYMIR) is a licensed prop- erty and casualty insurance program formed in 1993 in order to provide essential property and liability coverage for New York's general-purpose local governments. NYMIR has been able to build necessary surplus over time that, under existing provisions of the NYS Insurance Law which this legislation seeks to amend that requires that it fund member operating reserves with 25% of any annual underwriting profit. NYMIR now seeks to return the outstanding balances that currently remain inaccessible in members' operating reserve accounts. This would amount to approximately $6.3 million dollars shared amongst municipal members. This bill would amend Chapter 649 of the Laws of 2021 to ensure that municipal insurance reciprocals maintain an appropriate surplus to support its obligations and writings in the event of claims prior to the Superintendent of Financial Services authorizing the release of the outstanding subscriber operating reserve balance.   PRIOR LEGISLATIVE HISTORY: New bill.   EFFECTIVE DATE: This act shall take effect Immediately.
Go to top

A08712 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          8712
 
                   IN ASSEMBLY
 
                                    January 11, 2022
                                       ___________
 
        Introduced by M. of A. McDONALD -- read once and referred to the Commit-
          tee on Insurance
 
        AN ACT to amend the insurance law, in relation to authorizing the return
          of  any operating reserve balances of members of a municipal insurance
          reciprocal
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.    Subparagraph  (C)  of  paragraph 3 of subsection (a) of
     2  section 6109 of the insurance law, as amended by a chapter of  the  laws
     3  of  2021  amending  the insurance law relating to authorizing the super-
     4  intendent of financial services to authorize the return  of  subscribing
     5  member  operating  reserve  balances to members of a municipal insurance
     6  reciprocal, as proposed in legislative bills  numbers  S.  4112  and  A.
     7  3466, is amended to read as follows:
     8    (C)  in  the  case  of  a  municipal reciprocal insurer, authorize the
     9  return of any outstanding subscriber operating reserve balance upon  the
    10  municipal  reciprocal insurer's demonstration that it will retain suffi-
    11  cient surplus to support its obligations and writings.
    12    § 2. This act shall take effect on the  same  date  and  in  the  same
    13  manner  as  a  chapter  of  the  laws of 2021 amending the insurance law
    14  relating to authorizing the  superintendent  of  financial  services  to
    15  authorize the return of subscribing member operating reserve balances to
    16  members  of a municipal insurance reciprocal, as proposed in legislative
    17  bills numbers S. 4112 and A. 3466, takes effect.
 
 
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01939-02-2
Go to top

A08712 LFIN:

 NO LFIN
Go to top

A08712 Chamber Video/Transcript:

2-28-22Video (@ 00:52:53)Transcript pdf Transcript html
Go to top