Relates to assessment of certain title insurance corporations.
TITLE OF BILL: An act in relation to the creation of the title insurance assessment relief act
PURPOSE: To amend the law so that all New York-domiciled licensed title underwriters are assessed on the net premiums retained on policies issued for property located within the state of New York.
SUMMARY OF PROVISIONS: Section one amends the law to allow a title insurer domiciled in New York State to be assessed on direct premiums written less amounts paid to or retained by title agents in New York State during the calendar year immediately preceding the fiscal year for which the assessment is made.
Section two sets forth the effective date.
JUSTIFICATION: Title insurers domiciled in New York State are subject to annual assessments pursuant to Section 206 of the Financial Services Law to cover operating expenses of the department solely attributable to regulating persons under the insurance law. This assessment is based on 100% of the gross premium of policies written by the title insurer, but the insurer generally retains only 15% of the premium; 85% of the premium is retained by the title agent.
This legislation, if enacted, would afford relief to domesticated insurers while continuing to hold them responsible for the premiums assessed by law and used for the operation of the Department of Financial Services.
LEGISLATIVE HISTORY: New bill.
FISCAL IMPLICATIONS: To be determined.
EFFECTIVE DATE: Immediately.
STATE OF NEW YORK ________________________________________________________________________ 7228 IN SENATE May 6, 2014 ___________Introduced by Sen. SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance AN ACT in relation to the creation of the title insurance assessment relief act THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Title insurance assessment relief act. Notwithstanding section 206 of the financial services law, title insurance corporations licensed under paragraph 18 of subsection (a) of section 1113 of the insurance law and domiciled in New York state shall be assessed on direct premiums written less amounts paid to or retained by title agents in this state during the calendar year ending December thirty-first immediately preceding the end of the fiscal year for which the assess- ment is made (less return premiums and considerations thereon) for poli- cies or contracts of insurance covering title in this state the issuance of which policies or contracts requires a license from the superinten- dent of financial services. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD15014-01-4