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S 7144

Authorizes the New York convention center operating corporation to create a pure captive insurance company

2025 Regular Session Introduced by Brad Hoylman-Sigal

The bill would let the New York convention center operating corporation create and run a pure captive insurer to cover its own and affiliates’ risks.

REFERRED TO INSURANCE
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Bill Summary · S 7144

Summary of New York Senate Bill S 7144

Bill at a Glance

  • Bill Number: S 7144
  • Title: Authorizes the New York convention center operating corporation to create a pure captive insurance company
  • Sponsor (primary): Brad Hoylman-Sigal
  • Status: Referenced to the Senate Committee on Insurance
  • Introduced: April 1, 2025
  • Recent Legislative Actions:
    • 2025-04-01: Referenced to Insurance (listed twice in the record)

What the bill would do

  • The bill authorizes the New York convention center operating corporation to establish and operate a pure captive insurance company (a captive insurer whose primary purpose is to insure risks of its parent and affiliated entities).
  • The authorization envisions the captive insuring risks related to the convention center’s operations and potentially those of its affiliates, enabling internal risk management and access to capital markets for risk transfer.

Key provisions and potential requirements (high-level)

  • Formation and authorization: Explicit authority for the convention center operating corporation to create and maintain a pure captive insurer.
  • Regulatory framework: The captive would be subject to applicable New York insurance laws and oversight, including licensure, financial solvency standards, governance requirements, and regular reporting.
  • Capitalization and governance: Likely requirements around initial capitalization, ongoing financial requirements, and a governance structure to meet regulatory standards (board composition, fiduciary duties, etc.).
  • Operations and scope: Definition of permissible lines of business for the captive and limitations to ensure activities align with public and regulatory expectations.
  • Reporting and supervision: Regular financial reporting, audits, and supervision by the appropriate state insurance regulator (consistent with New York’s framework for captive insurers).

Note: The bill text is not provided here. The above reflects standard elements commonly associated with authorizing a public entity to establish a pure captive insurer and what such authorization typically entails.

Who would be affected

  • Primary entity: The New York convention center operating corporation (the entity currently responsible for operating convention center facilities in New York).
  • Affiliates/related entities: Potentially, affiliated organizations or operations that could be insured through the captive.
  • Regulators: New York State insurance regulators responsible for licensure, solvency oversight, and regulatory compliance of captive insurers.
  • Public stakeholders: Indirect effects via risk management and potential financial efficiencies in operating the convention center.

Procedural and timeline aspects

  • The bill has been introduced and referred to the Senate Insurance Committee for consideration.
  • There is no published date for committee hearings or a final vote in the record provided.
  • If approved by the Legislature, the bill would proceed to the other house (Assembly) and then require the governor’s signature to become law.
  • The effective date (when the provisions would take effect) is not specified in the available information.

Potential impacts and considerations

  • Financial/risk management: Could provide the convention center with more control over insurance costs and risk transfer, potentially improving risk management and stability of premiums.
  • Regulatory compliance: Requires ongoing adherence to New York insurance laws and regulatory oversight, including solvency and reporting requirements.
  • Fiscal considerations: Possible long-term cost savings or shifts in risk-related expenditures, though precise fiscal impact would depend on the captive’s structure, capitalization, and insurance needs.
  • Transparency and accountability: Enhanced regulatory oversight would accompany the establishment and operation of a public captive insurer.

If you’d like, I can compare S 7144 to existing New York statutes on captive insurers or provide a glossary of terms (e.g., “pure captive,” “solvency requirements,” etc.) to help readers better understand the proposal.

Compiled from official sources — confirm details with the bill’s official record.

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