NY S06789

Amends Insurance Law § 6109 to allow the superintendent of financial services to permit suspension of operating reserve accumulation for a fiscal year upon application from a reciprocal insurer's attorney-in-fact.

Requires that suspended earnings be returned to subscribers in the following fiscal year, provided the superintendent determines suspension would not harm policyholders or the state.

Maintains existing requirement that subscribers accumulate a minimum operating reserve of at least one-quarter of underwriting earnings annually until the reserve reaches twice the amount of annual premiums in force.

Prohibits subscriber withdrawals of operating reserves after a reciprocal insurer enters liquidation, receivership, or experiences an authorized or mandatory control level event as defined in Insurance Law § 1324.

Takes effect immediately upon enactment.