Bill > S08258

This bill introduces a comprehensive administrative supervision framework for insurers in New York that are deemed to be in a hazardous financial condition. The bill allows the superintendent of financial services to issue an order placing a domestic insurer under administrative supervision if certain conditions exist, such as the insurer's business being hazardous to the public, exceeding its legal powers, conducting business fraudulently, or failing to comply with insurance laws. When an insurer is placed under administrative supervision, the superintendent will provide a written list of requirements to address the problematic conditions, typically giving the insurer 60 days to make corrections. During the supervision period, the superintendent can severely restrict the insurer's activities, including prohibiting asset disposal, fund withdrawals, lending, investing, paying claims, merging, or changing management without prior approval. The insurer has the right to challenge the supervision order through administrative hearings. The bill also specifies that the expenses of administrative supervision will be paid by the insurer and that most documents and proceedings related to the supervision will be confidential. Importantly, the administrative supervision is an alternative to immediate rehabilitation or liquidation proceedings, giving the superintendent more flexibility in addressing insurers' financial challenges while protecting public interests.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S8258