Bill Text: NY A09629 | 2021-2022 | General Assembly | Introduced

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Bill Title: Relates to mortgage guaranty insurance.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-03-28 - referred to insurance [A09629 Detail]

Download: New_York-2021-A09629-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          9629

                   IN ASSEMBLY

                                     March 28, 2022
                                       ___________

        Introduced by M. of A. McDONALD -- read once and referred to the Commit-
          tee on Insurance

        AN  ACT  to  amend  the  insurance law, in relation to mortgage guaranty
          insurance

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section 1. Paragraph 2 of subsection (a) of section 6502 of the insur-
     2  ance law is amended to read as follows:
     3    (2)  it  establishes  a contingency reserve out of net premiums (gross
     4  premiums less premiums returned to policyholders) remaining after estab-
     5  lishing the unearned premium reserve. The company  shall  contribute  to
     6  the contingency reserve an amount equal to fifty percent of such remain-
     7  ing  earned  premiums.    Contributions  to the contingency reserve made
     8  during each calendar year shall  be  maintained  for  a  period  of  one
     9  hundred  and  twenty  months, except that withdrawals may be made by the
    10  company with the prior approval of the superintendent  in  any  year  in
    11  which  the  actual  incurred  losses  exceed  thirty-five percent of the
    12  corresponding earned premiums or as otherwise permitted  by  the  super-
    13  intendent.    The unearned premium reserve shall be computed as required
    14  by section one thousand three hundred five of this chapter  except  that
    15  on  policies  covering  a  risk period of more than one year it shall be
    16  computed in accordance with standards promulgated by the superintendent;
    17  and
    18    § 2. This act shall take effect immediately.




         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14750-01-2