Bill > S05311

This bill modifies existing insurance law regarding mortgage guaranty insurance by providing the superintendent of insurance with more flexibility in allowing withdrawals from a company's contingency reserve. Currently, mortgage guaranty insurance companies are required to contribute 50% of their earned premiums to a contingency reserve and maintain those contributions for 120 months, with withdrawals only permitted when actual incurred losses exceed 35% of earned premiums. The bill allows the superintendent to approve withdrawals from this reserve if, after careful consideration, they determine such withdrawals will not be harmful to policyholders. This change gives regulators more discretion in managing insurance companies' financial reserves, potentially providing insurers with greater financial flexibility while still maintaining protections for policyholders. The new language empowers the superintendent to make case-by-case determinations about reserve withdrawals based on a comprehensive assessment of potential risks and impacts.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S5311