S 7934: Requires pure captive insurance companies and group captive insurance companies who are a public entity, political subdivision, public authority, public benefit corporation, or a subsidiary thereof to hold at least two meetings each year in this state, have a majority of members required to be residents of this state, file an annual report with the governor, the temporary president of the senate, the speaker of the assembly, and the minority leaders of the senate and assembly, and submit to additional examinations.

  
  STATE OF NEW YORK ________________________________________________________________________ 7934 2025-2026 Regular Sessions  IN SENATE May 14, 2025 ___________ Introduced by Sen. HELMING -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance AN ACT to amend the insurance law, in relation to providing exceptions to pure captive insurance companies and group captive insurance compa- nies, who are public entities, political subdivisions, public authori- ties, public benefit corporations, or a subsidiary thereof 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 (b) of section 7003 of the insur- 2 ance law, as added by section 146 of part A of chapter 389 of the laws 3 of 1997, is amended to read as follows: 4 (2) its board of directors holds at least one meeting each year in 5 this state; provided, however, in the case of any pure captive insurance 6 company or group captive insurance company who is a public entity, poli- 7 tical subdivision, public authority, public benefit corporation, or a 8 subsidiary thereof, its board of directors shall hold at least two meet- 9 ings each year in this state; 10 § 2. Subsection (g) of section 7005 of the insurance law, as added by 11 section 146 of part A of chapter 389 of the laws of 1997, is amended to 12 read as follows: 13 (g) The board of directors of a captive insurance company incorporated 14 in this state shall have at least three members, with at least two of 15 the members required to be residents of this state; provided, however, 16 in the case of any pure captive insurance company or group captive 17 insurance company who is a public entity, political subdivision, public 18 authority, public benefit corporation, or a subsidiary thereof, the 19 board of directors shall have a majority of members required to be resi- 20 dents of this state. 21 § 3. Section 7007 of the insurance law, as amended by chapter 435 of 22 the laws of 2022, is amended to read as follows: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11993-01-5 
 S. 7934 2 1 § 7007. Examinations. (a) The superintendent may make an examination 2 into the affairs of any captive insurance company licensed to do a 3 captive insurance business in this state whenever it is deemed necessary 4 for the protection of the interests of the people of this state but the 5 superintendent shall conduct at least one examination every five years. 6 Such examinations shall be conducted in accordance with the provisions 7 of sections three hundred ten, three hundred eleven, three hundred 8 twelve of this chapter and subsection (f) of section two hundred six of 9 the financial services law. 10 (b) Notwithstanding subsection (a) of this section, in the case of any 11 pure captive insurance company or group captive insurance company who is 12 a public entity, political subdivision, public authority, public benefit 13 corporation, or a subsidiary thereof: 14 (1) the superintendent shall conduct an examination into the affairs 15 of such pure or group captive insurance company at least once every 16 three years. 17 (2) the state comptroller also is authorized to make an examination 18 into the affairs of such company if the state comptroller deems it 19 necessary at any time for the protection of the interests of the people 20 of this state. 21 § 4. Section 7006 of the insurance law, as added by section 146 of 22 part A of chapter 389 of the laws of 1997, is amended to read as 23 follows: 24 § 7006. Annual report. (a) Every captive insurance company licensed to 25 do a captive insurance business in this state shall file with the super- 26 intendent: 27 [(a)] (1) annually on or before March first, a statement of its finan- 28 cial condition and any amendment to the plan of operation at last year- 29 end, verified by the oath of at least two of its executive officers. The 30 statement shall be in the form prescribed by the superintendent; and 31 [(b)] (2) annually on or before July first, a report of its financial 32 condition at last year-end with an opinion of an independent certified 33 public accountant; and 34 [(c)] (3) annually on or before July first, evidence in a form 35 prescribed by the superintendent, that the industrial insured or member 36 of the industrial insured group owning the captive insurance company 37 continues to meet the financial standards set forth in subsection (e) of 38 section seven thousand two of this article. 39 (b) Notwithstanding subsection (a) of this section, any pure captive 40 insurance company or group captive insurance company who is a public 41 entity, political subdivision, public authority, public benefit corpo- 42 ration, or a subsidiary thereof shall file such annual report with the 43 superintendent, the governor, the temporary president of the senate, the 44 speaker of the assembly, and the minority leaders of the senate and 45 assembly. 46 § 5. This act shall take effect one year after it shall have become a 47 law. Effective immediately, the addition, amendment and/or repeal of any 48 rule or regulation necessary for the implementation of this act on its 49 effective date are authorized to be made and completed on or before such 50 date.