Bill > A04254

This bill amends the New York insurance law to modify rules regarding mortgage guaranty insurance contingency reserves. Currently, insurance companies must contribute 50% of their earned premiums to a contingency reserve that must be maintained for 120 months, with limited withdrawal options. The bill allows the state insurance superintendent more flexibility to permit withdrawals from this reserve if they determine such withdrawals would not harm policyholders. Specifically, the bill adds language enabling the superintendent to approve withdrawals beyond the existing provision that allows withdrawals only when actual incurred losses exceed 35% of earned premiums. By giving the superintendent discretion to assess potential withdrawals, the bill provides insurance companies more flexibility in managing their financial reserves while maintaining protections for policyholders. This change could help mortgage guaranty insurers better manage their financial resources during varying economic conditions, potentially making mortgage insurance more adaptable and potentially more affordable.

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https://www.nysenate.gov/legislation/bills/2025/A4254