NY S07353

Allows domestic mutual property/casualty insurance companies to temporarily exceed the 30 percent management expense cap when incurring costs for new system upgrades, subject to superintendent approval and a 60-day advance notice requirement.

Permits cooperative property/casualty insurance companies to temporarily exceed the 42.5 percent management expense cap for new system upgrade expenses under the same conditions as mutual companies.

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

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

Prohibits insurers from increasing premiums solely as a result of exceeding the management expenses cap during the temporary upgrade period.