NY S07540

Amends the management expense cap for domestic mutual property and casualty insurance companies to exclude expenses incurred in complying with specific cybersecurity and data security regulations under Insurance Law Section 307(b), Section 4117(g), and New York Codes Rules and Regulations Part 500.

Allows insurers to temporarily exceed the 30% management expense limit for new system upgrades with superintendent approval, up to 5 percentage points above the cap, for an initial period of up to 3 years with possible extension for an additional 3 years (6 years total).

Requires insurers to notify the superintendent at least 60 days in advance if a system upgrade will cause the management expense limit to be exceeded.

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

Takes effect immediately upon enactment.