New York S 2442: Enacts the small insurer protection act prohibiting the filing of an application for an order of rehabilitation or liquidation of a small insurer on certain grounds unless such order is based on certain findings

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 Speaker Carl E. Heastie

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S02442 Summary:

BILL NOS02442 

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SAME ASNo Same As

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SPONSORCOMRIE

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COSPNSRLANZA, MYRIE, PALUMBO, PARKER, STAVISKY

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MLTSPNSR

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Add §7402-a, Ins L

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Enacts the small insurer protection act prohibiting the filing of an application for an order of rehabilitation or liquidation of a small insurer on certain grounds unless such order is based on: the superintendent's adoption of a report on examination finding the company insolvent; or the annual or quarterly financial statements of the company, which show that the company's admitted assets do not exceed its liabilities and surplus to policyholders if the company does not maintain reserves in an amount determined reasonable by its independent loss reserve specialist or its appointed actuary.

Go to top S02442 Actions:

BILL NOS02442 

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01/17/2025REFERRED TO INSURANCE

01/07/2026REFERRED TO INSURANCE

Go to topS02442 Committee&nbspVotes:

Go to topS02442 Floor&nbspVotes:

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

Go to topS02442 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 2442

 2025-2026 Regular Sessions

 IN SENATE

 January 17, 2025
 ___________

 Introduced by Sens. COMRIE, LANZA, MYRIE, PALUMBO, PARKER, STAVISKY --
 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 enacting the small
 insurer protection act

 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 small insurer protection act".
 3 § 2. Legislative intent. The legislature intends to protect small
 4 insurance companies that write commercial automobile insurance within
 5 New York state, to encourage new entrants into the insurance market and
 6 novel insurance products, and to foster competition in the marketplace,
 7 which will benefit policyholders and the public.
 8 § 3. The insurance law is amended by adding a new section 7402-a to
 9 read as follows:
 10 § 7402-a. Small insurer rehabilitation or liquidation. 1. Notwith-
 11 standing any other provision of this chapter to the contrary, no appli-
 12 cation for an order of rehabilitation or liquidation of a small insurer
 13 as defined in this section shall be made on the grounds specified in
 14 subsection (a) or (c) of section seven thousand four hundred two of this
 15 article, unless such order is based on: (a) the superintendent's
 16 adoption of a report on examination, conducted in accordance with arti-
 17 cle three of this chapter, finding the company insolvent as defined in
 18 section one thousand three hundred nine of this chapter; or (b) the
 19 annual or quarterly financial statements of the company: (i) if the
 20 financial statements reflect that the company's admitted assets do not
 21 exceed its liabilities and surplus to policyholders; and (ii) the
 22 company does not maintain reserves in an amount determined reasonable
 23 by its independent loss reserve specialist or, if no independent loss
 24 reserve specialist is required, by its appointed actuary.

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD05043-01-5

 S. 2442 2

 1 2. Nothing in this section shall restrict the superintendent's right
 2 to direct an examination pursuant to section three hundred nine of this
 3 chapter, or otherwise interfere with the superintendent's regulatory
 4 authority as provided in this chapter, nor shall this provision be
 5 construed to restrict an insurer's rights and remedies in any judicial
 6 or administrative proceeding.
 7 3. As used in this section:
 8 (a) "small insurer" means a domestic property/casualty insurance
 9 company whose annual net direct written premiums written do not exceed
 10 twenty-five million dollars, at least seventy-five percent of which is
 11 from commercial automobile liability business; and
 12 (b) "direct written premiums" means the gross direct written premiums
 13 less return premiums on such direct business.
 14 § 4. This act shall take effect on the thirtieth day after it shall
 15 have become a law. Effective immediately the addition, amendment and