N.Y. Insurance Law § 333: Assessments to defray expenses of Committee on Valuation of Securities of the National Association of Insurance Commissioners

§ 333. Assessments to defray expenses of Committee on Valuation of

Securities of the National Association of Insurance Commissioners. (a)

The purpose of this section is to provide a means of making funds

available, not in excess of two hundred fifty thousand dollars in any

one year, to the Committee on Valuation of Securities of the National

Association of Insurance Commissioners to defray the expenses of such

committee, in the investigation, analyses and valuation of securities

and the determination of the amortizability of bonds, owned by insurers,

for the purpose of furnishing to the several states on a uniform basis

information needed in the supervision of insurers licensed to transact

business in the several states.

(b) The superintendent shall have authority to contract with such

committee to make available to the department the analyses, reports and

information developed by the committee and, after taking into

consideration similar payments which may be made by other states, for

the department to make payment to such committee, to the extent

authorized in subsection (a) hereof on account of the expenses of the

committee, from funds obtained through assessments for such purpose

under this section.

(c) The superintendent shall periodically obtain from the committee a

verified budget estimate of receipts and expenses to be incurred by the

committee for a stated period, not exceeding one year, with appropriate

explanations of the estimates therein contained.

(d) (1) If the superintendent shall be satisfied as to the

reasonableness of such budget estimate, he shall determine the portion

of the funds required by the estimate, to be assessed as hereinafter

provided, by deducting from the estimate or from the sum of two hundred

fifty thousand dollars, whichever is less, any amounts received or

receivable by the committee from other states whose laws do not

substantially conform to the method of assessment herein provided and

applying to the remainder the proportion which the total investments in

securities of domestic life insurers bear to the total investments in

securities of life insurers domiciled in this and other states whose

laws authorize and require assessments on substantially the same bases

as herein provided.

(2) The superintendent shall thereafter as soon as convenient, by

notice stating the method of computation thereof, assess the amount to

be paid on account of such expenses, pro rata upon all domestic life

insurers in the proportion which the total investments in securities of

each domestic life insurer shall bear to the total investments in

securities of all such insurers. The total investments in securities of

any life insurer for purposes of this section shall be the total

admitted value of stocks and bonds reported as such in its annual

statement last filed prior to such assessment with the department of

financial services or with the supervisory official of its state of

domicile. Upon receipt of such notice each such insurer shall within

thirty days pay said assessment to the superintendent.

(3) The superintendent shall deposit all moneys collected by him

pursuant to this section in an account entitled "Superintendent of

Financial Services, Security Valuation Expense Account", in a bank or

trust company in the city of Albany designated by the comptroller. Such

moneys shall be paid by the superintendent to the Committee on Valuation

of Securities of the National Association of Insurance Commissioners

after audit by the comptroller.

(e) The superintendent shall annually require of such committee, and

at such other times as he may deem it necessary or advisable, a duly

certified audit of receipts and disbursements and statement of assets

and liabilities, showing the details of its financial operations.