Assembly BillIntroduced
A 4254: Relates to mortgage guaranty insurance; allows for withdrawals from the contingency reserve if the superintendent determines that such withdrawals will not be harmful to policy holders.
What A 4254 does, verified January 8, 2026
The bill aims to amend the insurance law to establish a contingency reserve for mortgage guaranty insurance. The insurance company will contribute 50% of remaining earned premiums to the contingency reserve. Contributions made during each calendar year must be maintained for 2.2 years, with the possibility of withdrawal with the superintendent's prior approval in years with high incurred losses. The unearned premium reserve will be computed according to standards promulgated by the superintendent. The changes will take effect immediately.
Bill journey
1IntroducedCurrent
2In CommitteePending
3First Chamber FloorPending
4Second ChamberPending
5GovernorPending
6ChapteredPending
Last action: referred to insurance (2026-01-07)Alert me
Author and sponsors
Full contact details, staff, and committees with Connect, $16/moUnlockRecent actions2 total · showing 2
| Jan. 07, 2026 | referred to insurance |
| Jan. 31, 2025 | referred to insurance |
Latest bill textIntroduced version, January 31, 2025 · 311 words
STATE OF NEW YORK ________________________________________________________________________ 4254 2025-2026 Regular Sessions IN ASSEMBLY January 31, 2025 ___________ Introduced by M. of A. McDONALD, WEPRIN, STIRPE, SAYEGH, STECK, BLANKEN- BUSH -- read once and referred to the Committee 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 may be permitted by the 13 superintendent if after due consideration the superintendent determines 14 the withdrawal shall not be harmful to policyholders. The unearned 15 premium reserve shall be computed as required by section one thousand 16 three hundred five of this chapter except that on policies covering a 17 risk period of more than one year it shall be computed in accordance 18 with standards promulgated by the superintendent; and 19 § 2. This act shall take effect immediately. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD01541-01-5
Text of A 4254 as introduced, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions