New York Senate Bill S07934

New York 2025-2026 Regular Session

• Introduced: 5/14/25
• Refer: 5/14/25
• Refer: 1/7/26

Caption

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.

Summary

This bill amends New York’s Insurance Law provisions governing captive insurance companies, with special rules for pure captive insurance companies and group captive insurance companies that are public entities, political subdivisions, public authorities, public benefit corporations, or subsidiaries of those entities. It requires those captives to hold at least two board meetings each year in New York, instead of the general requirement of one annual in-state meeting, and it raises the in-state residency requirement for their boards so that a majority of directors must be New York residents. The bill also increases oversight of these public-sector captives. It requires the Superintendent of Financial Services to examine them at least once every three years, rather than the general five-year examination interval, and authorizes the State Comptroller to conduct examinations when deemed necessary. In addition, these entities must file their annual reports not only with the Superintendent but also with the Governor, the Temporary President of the Senate, the Speaker of the Assembly, and the minority leaders of both houses. The bill takes effect one year after becoming law, with immediate authorization for any needed implementing regulations.

Impact

The bill would amend Insurance Law sections 7003, 7005, 7006, and 7007 to create a more stringent oversight framework for a narrow category of captive insurers tied to public entities and related public bodies. It does not change the basic captive insurance regime for all captives, but it adds governance, reporting, and examination requirements for these public-sector captives, increasing state-level transparency and legislative/executive visibility into their operations.

Sentiment

The available record shows no committee transcript, floor debate, or recorded votes, so there is no direct evidence of support or opposition in the materials provided. Based on the bill’s text and caption, the measure appears to be framed as an accountability and oversight bill rather than a broad policy change, suggesting a likely neutral-to-supportive posture focused on public-sector governance and financial supervision.

Contention

The main point of potential contention is the added regulatory burden on public entity-related captive insurers, including more frequent meetings in New York, a higher residency threshold for directors, more frequent examinations, and expanded reporting to top state officials. Supporters would likely view these requirements as appropriate safeguards because the captives are connected to public bodies and public funds, while opponents might argue that the bill imposes duplicative oversight or reduces flexibility for entities that already operate under existing captive insurance rules.