S. 5431-B(Seward)/A. 8831-A(Weprin)
Fraternal Benefit Society Modernization
Summary: The bill amends the Insurance Law to provide fraternal benefit societies
with the same opportunities to engage in investment practices that are currently provided to life
insurance companies, and to give the Superintendent authority to ensure fraternal benefit societies
remain solvent. Specifically:
- The Superintendent is provided the authority to mandate that all fraternal benefit
societies maintain a surplus.
- The Superintendent is provided the authority to require fraternal benefit societies
to submit records describing each society's communal activities and take other actions that the
Superintendent deems appropriate in his efforts to oversee the society's investment activities.
- The Superintendent is provided enhanced authority to ensure that fraternal benefit
societies that wish to engage in certain investments in New York, remain solvent.
- The provisions of Insurance Law § 1105, pertaining to insurance companies authorized in New York voluntarily ceasing to maintain a license in New York, is made applicable to fraternal benefit societies.
- Certain fraternal benefit societies are permitted to engage in the same investment
practices that life insurance companies may engage in pursuant to sections 1402, 1403, 1405,
1406, 1410, 4240, and Article 17 of the Insurance Law.
Effective Date: Immediately.
Last Action: Approved and signed by the Governor on March 4, 2008 (Chapter 22 of the
Laws of 2008).