NY A09793

Allows domestic mutual property/casualty insurance companies to temporarily exceed the 30% management expense cap when incurring costs for new system upgrades, with superintendent approval.

Permits cooperative property/casualty insurance companies to temporarily exceed the 42.5% management expense cap for new system upgrades, subject to superintendent approval.

Limits any temporary increase to no more than 5 percentage points above the existing cap and restricts the exemption to a maximum of 6 years.

Defines "new system upgrade" as the acquisition of electronic data processing apparatus, equipment, and software constituting data processing, record keeping, or accounting systems.

Prohibits insurers from increasing premiums solely as a result of exceeding the management expense caps and requires 60-day advance notice to the superintendent.