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Bill > S03671


NY S03671

NY S03671
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


summary

Introduced
01/30/2021
In Committee
01/05/2022
Crossed Over
Passed
Dead
12/31/2022

Introduced Session

2021-2022 General Assembly

Bill Summary

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: (i) the superintendent's adoption of a report on examination finding the company insolvent; or (ii) 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.

AI Summary

This bill enacts the "Small Insurer Protection Act," which prohibits the filing of an application for an order of rehabilitation or liquidation of a "small insurer" (a domestic property/casualty insurance company with annual net direct written premiums not exceeding $25 million, at least 75% of which is from commercial automobile liability business) on certain grounds unless the order is based on either the superintendent's adoption of an examination report finding the company insolvent, or the company's financial statements showing that its admitted assets do not exceed its liabilities and surplus to policyholders, and the company does not maintain reserves in an amount determined reasonable by its independent loss reserve specialist or appointed actuary. The bill aims to protect small insurance companies, encourage new market entrants, and foster competition in the insurance marketplace.

Committee Categories

Business and Industry

Sponsors (9)

Last Action

REFERRED TO INSURANCE (on 01/05/2022)

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