BILL NUMBER: S5050
SPONSOR: BAILEY
 
TITLE OF BILL:
An act to amend the insurance law, in relation to the redomestication of
insurance companies
 
PURPOSE:
To provide for the more efficient regulation of insurance entities by
more closely conforming New York law governing the redomestication of
insurance companies to the National Association of Insurance Commission-
ers (NAIC) Redomestication Model Act.
 
SUMMARY OF PROVISIONS:
This bill would amend § 7120 to the Insurance Law by adding a new
subsection (c) and subsection (h) to more closely conform New York law
governing the redomestication of insurance companies to the NATO Redo-
mestication Model Bill. Specifically, this bill would include provisions
governing the redomestication of a domestic insurance company to another
state upon the approval of the Superintendent of Insurance. Upon
approval of redomestication by the Superintendent, the transferring
company would be authorized to transact business in New York State as a
foreign company, provided that the insurer meets all the requirements
for operation as a foreign company. Such company could continue to
utilize policy forms previously approved by the Superintendent for their
use as a domestic insurer, with the proper endorsements.
 
EXISTING LAW:
Currently, § 7120 only contains the provisions of the NAIC Model relat-
ing to the transfer to this state of the corporate domicile of an
authorized foreign company.
 
JUSTIFICATION:
This bill will improve the efficiency of the regulation and oversight of
affiliated groups of insurance companies domiciled in multiple states
and will help to preserve the continuation of state regulation of insur-
ance. Forty-one states have adopted a version of the NAIC Redomestica-
tion Model Act, which provides for a redomestication process which is
efficient, effective and not unduly cumbersome. New York State has not
adopted the provisions of the Model Act relating to the transfer of a
domestic insurer to another state and, thus, under current New York law,
the process for consolidating affiliates is a very difficult, time
consuming and cumbersome one. By adopting the balance of the NAIC Redo-
mestication Model Bill, this legislation will also further uniformity
among states relative to the regulation of insurance companies and would
make the current state-based system for the regulation of insurance
companies more efficient. As the threat of the federal regulation of the
insurance industry continues to loom, it is important that states demon-
strate their ability to work together and adopt uniform laws where such
laws would provide for the more effective regulation of insurance compa-
nies. The enactment of this legislation would further this goal.
 
LEGISLATIVE HISTORY:
S2792 of 2023-24:Referred to Insurance
S3773 of 2021-22
S3504 of 2019-20
S697 of 2017-16
S1434 of 2015-16
S3543 of 2013-14
S3366 of 2011-12
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
Immediately.

Statutes affected:
S5050: 7120 insurance law