Bill > A10090

This bill, titled "Relates to the administrative supervision of insurers deemed to be in a hazardous financial condition," aims to grant the Superintendent of Financial Services (the state official overseeing insurance companies) enhanced authority to intervene when an insurer is facing financial difficulties that could harm policyholders or the public. The core of the bill establishes a new process for "administrative supervision," which is a less severe intervention than full receivership or liquidation (referred to as "article seventy-four proceedings"). Under this new section 1125, the Superintendent can place an insurer under administrative supervision if they determine the insurer's business is hazardous to the public or its insureds, has exceeded its legal powers, failed to comply with insurance laws, is conducting business fraudulently, or if the insurer consents. If placed under supervision, the insurer will receive a list of requirements to fix the identified problems within a specified timeframe, and they have the right to request an administrative hearing to challenge the Superintendent's order. If the issues are not resolved, supervision continues, and if they are resolved, the insurer is released. During supervision, the Superintendent can restrict the insurer from various activities, such as disposing of assets, withdrawing funds, investing, paying claims, or making significant changes to management or policies, without prior approval. The bill also amends existing sections of insurance law to explicitly allow the Superintendent to use this administrative supervision option as an alternative to immediate receivership or liquidation when an insurer is found to be insolvent or has a significant financial impairment. The expenses of this administrative supervision will be borne by the supervised insurer, and information related to the supervision will generally be kept confidential unless deemed in the public interest or used by the Superintendent for regulatory or legal actions.

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https://www.nysenate.gov/legislation/bills/2025/A10090