S. 6655(Seward)/A. 9883(Morelle)

Domestic Life Companies: Accumulation of Surplus

Summary:  The bill makes permanent provisions of Insurance Law Section 4219, which  places a limit on the amount of surplus that domestic mutual life insurers and domestic stock life insurers that issue participating policies are permitted to maintain.  In 2005, Section 4219 was amended to allow stock life insurers to utilize the risk-based capital (RBC) formula that was already authorized for domestic mutual life insurers.  The 2005 amendments also provided for the inclusion of reserves and liabilities of accident and health insurance policies and for the inclusion of the reserves and liabilities of wholly-owned subsidiaries of life insurers.  These amendments were scheduled to sunset on December 31, 2008.

Effective Date:  The bill is effective immediately.

Last Action: Approved and signed by the Governor on May 7, 2008 (Chapter 72 of the Laws of 2008).