New York A 9231: Enacts the "New York state catastrophe fund authority act"; appropriation

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A09231 Summary:

BILL NOA09231 

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SAME ASNo Same As

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Add Art 92 §§9201 - 9210, Ins L

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Enacts the "New York state catastrophe fund authority act" for the purpose of facilitating the creation of innovative solutions to property insurance crises and to ensure the viability of insurance carriers in the state; appropriates $10,000,000 to initiate such fund.

Go to top A09231 Actions:

BILL NOA09231 

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11/03/2025referred to insurance

01/07/2026referred to insurance

Go to topA09231 Committee&nbspVotes:

Go to topA09231 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topA09231 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 9231

 2025-2026 Regular Sessions

 IN ASSEMBLY

 November 3, 2025
 ___________

 Introduced by M. of A. STERN -- read once and referred to the Committee
 on Insurance

 AN ACT to amend the insurance law, in relation to establishing the New
 York state catastrophe fund authority act and making an appropriation
 therefor

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. Short title. This act shall be known and may be cited as
 2 the "New York state catastrophe fund authority act".
 3 § 2. Legislative findings and declaration. The legislature finds and
 4 declares:
 5 1. There is a compelling state interest to maintain a viable and
 6 orderly private sector property/casualty insurance market for both resi-
 7 dential and commercial properties in this state and across the United
 8 States. To the extent that the private sector is unable to maintain an
 9 orderly market, due to catastrophic losses from natural disasters, state
 10 action to maintain an orderly insurance market is a necessary exercise
 11 of police power;
 12 2. As a result of scores of billions of dollars in insured losses from
 13 natural disasters this past year across the nation and the world, due to
 14 either chance or as a result of global warming, numerous insurers are
 15 now beginning to reduce their loss exposure from natural disasters by
 16 pulling out of certain insurance markets. The potential instability of
 17 the world reinsurance market, which has been caused in part by these
 18 events, has also increased pressure on direct insurers to reduce their
 19 risk exposure from a catastrophic loss;
 20 3. The formation of a public authority to provide reimbursement to
 21 insurers for a portion of their catastrophic losses should create addi-
 22 tional insurance capacity to ameliorate the current dangers to the
 23 state's economy and to the public health, safety and welfare; and

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD13986-02-5

 A. 9231 2

 1 4. To increase insurance industry capacity to cover insured losses, it
 2 is essential that revenues received by such authority be exempt from
 3 federal and state taxation. It is therefore the intent of the legisla-
 4 ture that this program be structured as a public authority to operate
 5 the fund. Furthermore, funds held by such fund will be protected and
 6 remain available to pay for catastrophic losses and not used for state
 7 budget general fund expenditures.
 8 § 3. The insurance law is amended by adding a new article 92 to read
 9 as follows:
 10 ARTICLE 92
 11 NEW YORK STATE CATASTROPHE FUND AUTHORITY
 12 Section 9201. Definitions.
 13 9202. New York state catastrophe fund.
 14 9202-a. New York state catastrophe fund authority.
 15 9202-b. General powers of the authority.
 16 9203. Reimbursement contracts.
 17 9204. Reimbursement premiums.
 18 9205. Revenue bonds.
 19 9206. Additional powers and duties.
 20 9206-a. Notes and bonds of the authority.
 21 9206-b. Agreement of the state.
 22 9206-c. Notes and bonds as legal investment.
 23 9207. Advisory council.
 24 9208. Violations.
 25 9209. International, federal, state, regional or multistate
 26 catastrophe funds.
 27 9210. Fund assets upon termination.
 28 § 9201. Definitions. As used in this article:
 29 (a) "Actuarially indicated" means, with respect to premiums paid by
 30 insurers for reimbursement provided by the catastrophe fund authority,
 31 an amo