S T A T E O F N E W Y O R K
________________________________________________________________________
6710
I N S E N A T E
March 12, 2012
___________
Introduced by Sen. SEWARD -- (at request of the Department of Financial
Services) -- 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 risk-based capital for
property/casualty insurers; to amend the financial services law, in
relation to annual reports of the superintendent; and to repeal
certain provisions of the insurance law and the banking law relating
to annual reporting requirements of the superintendent of financial
services
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Paragraph 1 of subsection (d) of section 1324 of the
2 insurance law, as added by chapter 631 of the laws of 2007, is amended
3 to read as follows:
4 (1) "Company action level event" means, with respect to a domestic
5 insurer:
6 (A) The filing by the insurer of an RBC report indicating that the
7 insurer's total adjusted capital is greater than or equal to its regula-
8 tory action level RBC but less than its company action level RBC;
9 (B) The notification by the superintendent to the insurer of an
10 adjusted RBC report that indicates the occurrence of an event described
11 in subparagraph (A) of this paragraph, provided the insurer does not
12 challenge the adjusted RBC report under subsection (h) of this section;
13 [or]
14 (C) If, under subsection (h) of this section, the insurer challenges
15 an adjusted RBC report that indicates the occurrence of an event
16 described in subparagraph (A) of this paragraph, the notification by the
17 superintendent to the insurer that the superintendent has, after a hear-
18 ing, rejected the insurer's challenge[.]; OR
19 (D) THE FILING BY THE INSURER OF AN RBC REPORT INDICATING THAT THE
20 INSURER HAS TOTAL ADJUSTED CAPITAL THAT IS GREATER THAN OR EQUAL TO ITS
21 COMPANY ACTION LEVEL RBC, BUT LESS THAN THE PRODUCT OF THREE POINT ZERO
22 AND ITS AUTHORIZED CONTROL LEVEL RBC, AND WITH A COMBINED RATIO GREATER
23 THAN ONE HUNDRED TWENTY PERCENT AS DETERMINED IN ACCORDANCE WITH THE
24 TREND TEST CALCULATION IN THE RBC INSTRUCTIONS.
25 S 2. Section 206 of the insurance law is REPEALED.
26 S 3. Section 43 of the banking law is REPEALED.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14841-02-2
S. 6710 2
1 S 4. The financial services law is amended by adding a new section 207
2 to read as follows:
3 S 207. ANNUAL REPORT OF THE SUPERINTENDENT. (A) THE SUPERINTENDENT
4 SHALL SUBMIT A REPORT ANNUALLY TO THE GOVERNOR AND TO THE LEGISLATURE ON
5 OR BEFORE THE FIFTEENTH DAY OF SEPTEMBER. THE REPORT SHALL CONTAIN THE
6 FOLLOWING ITEMS, WITH RESPECT TO THE PRECEDING CALENDAR YEAR:
7 (1) A GENERAL REVIEW OF THE INSURANCE BUSINESS, BANKING BUSINESS, AND
8 FINANCIAL PRODUCT OR SERVICE BUSINESS UTILIZING THE MOST CURRENT INFOR-
9 MATION AVAILABLE;
10 (2) A CONSOLIDATED STATEMENT OF CONDITION SHOWING THE COMBINED ASSETS
11 AND LIABILITIES OF ALL BANKING ORGANIZATIONS COMPRISING EACH OF THE
12 FOLLOWING CLASSES: (A) BANKS AND TRUST COMPANIES; AND (B) PRIVATE BANK-
13 ERS. EACH SUCH CONSOLIDATED STATEMENT SHALL COMBINE THE INFORMATION
14 CONTAINED IN THE LAST PERIODICAL REPORTS OF CONDITION RECEIVED FROM SUCH
15 BANKING ORGANIZATIONS AS OF A DATE DURING THE YEAR FOR WHICH SUCH REPORT
16 OF THE SUPERINTENDENT IS RENDERED;
17 (3) A CONSOLIDATED STATEMENT OF CONDITION SHOWING THE COMBINED ASSETS
18 AND LIABILITIES OF ALL BANKING ORGANIZATIONS COMPRISING EACH OF THE
19 FOLLOWING CLASSES: (A) SAVINGS BANKS; (B) SAFE DEPOSIT COMPANIES; (C)
20 SAVINGS AND LOAN ASSOCIATIONS; (D) CREDIT UNIONS; AND (E) INVESTMENT
21 COMPANIES. EACH SUCH CONSOLIDATED STATEMENT SHALL COMBINE THE INFORMA-
22 TION CONTAINED IN THE LAST PERIODICAL REPORTS OF CONDITION MADE TO THE
23 SUPERINTENDENT AS OF A DATE DURING THE YEAR FOR WHICH THE REPORT OF THE
24 SUPERINTENDENT IS RENDERED, EXCEPT THAT WITH RESPECT TO THOSE CLASSES
25 MAKING REPORTS TO THE SUPERINTENDENT AS OF THE FIRST DAY OF THE FOLLOW-
26 ING YEAR, SUCH CONSOLIDATED STATEMENTS SHALL COMBINE THE INFORMATION
27 CONTAINED IN SUCH REPORTS;
28 (4) A CONSOLIDATED STATEMENT OF CONDITION SHOWING THE COMBINED ASSETS
29 AND LIABILITIES OF ALL LICENSED LENDERS. EACH SUCH CONSOLIDATED STATE-
30 MENT SHALL COMBINE THE INFORMATION CONTAINED IN THE REPORTS TO BE MADE
31 ON OR BEFORE THE FIRST DAY OF APRIL OF THE YEAR FOLLOWING THE YEAR FOR
32 WHICH THE REPORT OF THE SUPERINTENDENT IS RENDERED;
33 (5) A STATEMENT OF CONDITION OF EACH BANKING ORGANIZATION REQUIRED BY
34 THE BANKING LAW TO MAKE PERIODICAL REPORTS OF CONDITION TO THE SUPER-
35 INTENDENT. SUCH STATEMENT SHALL INCLUDE THE INFORMATION CONTAINED IN THE
36 LAST PERIODICAL REPORT OF CONDITION MADE TO THE SUPERINTENDENT AS OF A
37 DATE DURING THE YEAR FOR WHICH SUCH REPORT OF THE SUPERINTENDENT IS
38 RENDERED, EXCEPT THAT IN THE CASE OF BANKING ORGANIZATIONS MAKING
39 REPORTS TO THE SUPERINTENDENT AS OF THE FIRST DAY OF THE FOLLOWING YEAR,
40 EACH SUCH STATEMENT SHALL INCLUDE THE INFORMATION CONTAINED IN SUCH
41 REPORTS. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBSECTION, IN
42 LIEU OF MAKING A STATEMENT OF THE CONDITION OF EACH COVERED BANKING
43 ORGANIZATION, THE SUPERINTENDENT MAY MAKE SUCH INFORMATION AVAILABLE BY
44 ANY OTHER MEANS THAT PROVIDES FOR DIRECT PUBLIC ACCESS OR AVAILABILITY
45 TO SUCH REQUIRED REPORTS OF CONDITION;
46 (6) A STATEMENT OF ALL BANKING ORGANIZATIONS, FOREIGN BANKING CORPO-
47 RATIONS AND LICENSED LENDERS AUTHORIZED OR LICENSED BY THE SUPERINTEN-
48 DENT TO DO BUSINESS DURING THE YEAR FOR WHICH THE REPORT IS RENDERED,
49 WITH THEIR NAMES AND LOCATIONS AND THE DATES ON WHICH THEIR CERTIFICATES
50 WERE APPROVED BY THE SUPERINTENDENT, AND SUCH OTHER INFORMATION AS THE
51 SUPERINTENDENT DEEMS APPROPRIATE;
52 (7) A STATEMENT OF THE BANKING ORGANIZATIONS, FOREIGN BANKING CORPO-
53 RATIONS WHOSE BUSINESS HAS BEEN CLOSED EITHER VOLUNTARILY OR INVOLUNTAR-
54 ILY DURING THE YEAR FOR WHICH THE REPORT IS RENDERED, WITH THE AMOUNT OF
55 THEIR RESOURCES AND OF THEIR DEPOSITS AND OTHER LIABILITIES AS LAST
56 REPORTED BY THEM;
S. 6710 3
1 (8) A STATEMENT OF ANY UNCLAIMED AMOUNTS HELD BY THE SUPERINTENDENT
2 PURSUANT TO THE REQUIREMENTS OF THE BANKING LAW AS TRUSTEE FOR THE CRED-
3 ITORS, DEPOSITORS, STOCKHOLDERS OR SHAREHOLDERS OF EACH BANKING ORGAN-
4 IZATION THE BUSINESS AND AFFAIRS OF WHICH SHALL HAVE BEEN FINALLY LIQUI-
5 DATED; THE AMOUNT OF INTEREST RECEIVED DURING THE PRECEDING FISCAL YEAR
6 UPON ALL SUCH UNCLAIMED AMOUNTS HELD BY THE SUPERINTENDENT; AND THE
7 AMOUNT OF ABANDONED FUNDS PAID OVER BY THE SUPERINTENDENT TO THE STATE
8 COMPTROLLER PURSUANT TO THE REQUIREMENTS OF THE BANKING LAW;
9 (9) A TABLE SHOWING THE NUMBER AND KINDS OF AUTHORIZED INSURERS
10 ACCORDING TO CLASSES OF BUSINESS, AND THEIR TOTAL ASSETS, LIABILITIES,
11 PREMIUMS WRITTEN, AND INSURANCE IN FORCE, AS SHOWN BY THE ANNUAL STATE-
12 MENTS FILED WITH THE SUPERINTENDENT BY SUCH INSURERS;
13 (10) LISTS OF: (A) INSURERS ORGANIZED, ADMITTED, MERGED, WITHDRAWN, OR
14 PLACED IN LIQUIDATION, CONSERVATION, OR REHABILITATION, (B) DOMESTIC
15 INSURERS THAT HAVE AMENDED THEIR CHARTERS OR HAVE INCREASED OR DECREASED
16 THEIR CAPITAL STOCK, TOGETHER WITH A STATEMENT OF THE EXTENT THEREOF;
17 AND (C) DOMESTIC INSURERS THAT HAVE CHANGED THEIR CORPORATE NAMES;
18 (11) A LIST OF DEPARTMENT REPORTS FILED ON EXAMINATION OF AUTHORIZED
19 INSURERS;
20 (12) A STATEMENT OF THE EXPENSES OF ADMINISTERING THE
21 PROPERTY/CASUALTY INSURANCE SECURITY FUND AND THE PUBLIC MOTOR VEHICLE
22 LIABILITY SECURITY FUND PURSUANT TO ARTICLE SEVENTY-SIX OF THE INSURANCE
23 LAW;
24 (13) TABLES RELATIVE TO INSURER LIQUIDATION, CONSERVATION OR REHABILI-
25 TATION PROCEEDINGS BY THE DEPARTMENT FOR PRIOR YEARS, INCLUDING THE
26 PRECEDING CALENDAR YEAR;
27 (14) ANY AMENDMENTS TO THE BANKING LAW, THE INSURANCE LAW, AND THIS
28 CHAPTER, AND ANY AMENDMENTS TO REGULATIONS PROMULGATED THEREUNDER,
29 DURING THE YEAR FOR WHICH SUCH REPORT IS RENDERED; A SUMMARY OF INSUR-
30 ANCE CIRCULAR LETTERS AND BANKING INTERPRETATIONS ISSUED DURING THE YEAR
31 FOR WHICH SUCH REPORT IS RENDERED; AND SUCH OTHER MATTERS RELATING TO
32 THE BANKING ORGANIZATIONS, CORPORATIONS, PARTNERSHIPS, INSURERS, INSUR-
33 ANCE PRODUCERS, OR OTHER ENTITIES OR PERSONS LICENSED, AUTHORIZED TO DO
34 BUSINESS, CERTIFIED, OR REGISTERED UNDER THE BANKING LAW, THE INSURANCE
35 LAW, OR THIS CHAPTER, INCLUDING PUBLIC STATEMENTS, RECOMMENDATIONS AND
36 DECISIONS OF THE SUPERINTENDENT, OCCURRING DURING THE YEAR FOR WHICH
37 SUCH REPORT IS RENDERED, WHICH, IN THE JUDGMENT OF THE SUPERINTENDENT,
38 MAY BE OF HISTORICAL OR REGULATORY SIGNIFICANCE;
39 (15) LEGISLATIVE RECOMMENDATIONS THAT THE SUPERINTENDENT DEEMS NECES-
40 SARY OR DESIRABLE; AND
41 (16) A SUMMARY OF THE DEPARTMENT'S RECEIPTS AND EXPENSES DURING THE
42 PRECEDING FISCAL YEAR, EXCEPT EXPENSES OF LIQUIDATION NOT PAID OUT OF
43 AMOUNTS APPROPRIATED BY THE LEGISLATURE, THE AMOUNTS APPROPRIATED BY THE
44 LEGISLATURE FOR THE EXPENSES OF THE DEPARTMENT DURING SUCH YEAR, AND THE
45 AMOUNT, IF ANY, FOR WHICH THE TREASURY OF THE STATE SHALL NOT HAVE BEEN
46 REIMBURSED AT THE DATE OF SUCH REPORT.
47 (B) THE SUPERINTENDENT MAY, IN ADDITION TO THE ABOVE REQUIREMENTS,
48 INCLUDE IN SUCH REPORT ANY OTHER MATTER OR DATA CONCERNING INSURANCE,
49 BANKING, FINANCIAL PRODUCTS OR SERVICES OR THE SUPERINTENDENT'S DUTIES
50 UNDER THE INSURANCE LAW, THE BANKING LAW, OR THIS CHAPTER, WHICH IN THE
51 SUPERINTENDENT'S JUDGMENT, IS OF GENERAL INTEREST OR IMPORT.
52 S 5. This act shall take effect immediately.