S T A T E   O F   N E W   Y O R K
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                                 7458--A

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              May 12, 2015
                               ___________

Introduced  by  M. of A. SKOUFIS, ZEBROWSKI -- read once and referred to
  the Committee on Insurance  --  committee  discharged,  bill  amended,
  ordered reprinted as amended and recommitted to said committee

AN ACT to amend the insurance law, in relation to revising the standards
  relating  to  the board of directors of domestic life insurance compa-
  nies

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subsection  (b)  of section 1202 of the insurance law, as
amended by chapter 802 of the laws of 1985, paragraph 1  as  amended  by
chapter  451  of the laws of 1993, and paragraph 2 as amended by chapter
668 of the laws of 1993, is amended to read as follows:
  (b) (1) Subject to item (v) of subparagraph (B) of paragraph  five  of
subsection  (a) of section one thousand two hundred one of this article,
not less than one-third of the directors of a domestic stock life insur-
ance company and not less than one-third of the members of each  commit-
tee  of  the  board  of directors of any domestic life insurance company
shall be persons who are not officers or employees of such company or of
any entity controlling, controlled by, or under common control with such
company and who are not beneficial owners of a controlling  interest  in
the  voting  stock of such company or any such entity. At least one such
person must be included in any quorum for the transaction of business at
any meeting of the board of directors or any committee thereof.
  (2) The board of directors of a domestic life insurance company  shall
establish  one  or more committees comprised solely of directors who are
not officers or employees of the company or of any  entity  controlling,
controlled  by, or under common control with the company and who are not
beneficial owners of a controlling interest in the voting stock  of  the
company  or  any  such  entity.  Such committee or committees shall have
responsibility for recommending the selection of  independent  certified
public  accountants,  reviewing  the  company's financial condition, the

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06895-03-5
              

A. 7458--A                          2

scope and results of the independent audit and any internal audit, nomi-
nating candidates for director for election by shareholders  or  policy-
holders, evaluating the performance of officers deemed by such committee
or  committees  to be principal officers of the company and recommending
to the board of directors the selection and compensation of such princi-
pal officers and in the case of a domestic stock life insurance company,
recommending to its board of directors any plan to issue options to  its
officers  and employees for the purchase of shares of stock, pursuant to
section one thousand two hundred seven of this article.
  (3) The provisions of this subsection shall not apply  to  a  DOMESTIC
life insurance company [subsidiary] if the [parent company is a domestic
insurance  company]  PERSON  CONTROLLING  SUCH  INSURANCE  COMPANY IS AN
INSURANCE COMPANY, A MUTUAL INSURANCE HOLDING COMPANY OR A PUBLICLY HELD
CORPORATION having a board of directors and committees thereof that meet
the requirements of paragraphs one and two of this subsection.
  S 2. This act shall take effect immediately.