Bill > S08259

This bill amends the New York insurance law to clarify and expand the superintendent of insurance's powers regarding conservation orders for domestic, foreign, and alien insurers. The bill modifies Section 7406 to explicitly include domestic insurers in the grounds for conservation, allowing the superintendent to apply for an order to conserve an insurer's assets under specific conditions such as financial distress or consent by the insurer's directors. Section 7407 is also amended to require the superintendent, when appointed as a conservator for a domestic insurer, to conduct a thorough analysis of the insurer's business and financial condition and take necessary actions to correct underlying problems and potentially restore the insurer to normal operations. Additionally, the bill updates language to use gender-neutral terms like "them" instead of "him" and provides more detailed procedures for how the superintendent can act as an ancillary receiver when a domiciliary receiver is appointed in another reciprocal state. The changes aim to provide more clarity and flexibility in managing potentially troubled insurance companies, with the amendments taking effect immediately and applying to all conservation appointments on or after the bill's passage.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S8259