Group Capital Calculation Legislation In New York

New York Senate Bill S9006, which passed the Senate on 31 May 2022 ('New York GCC Bill'), is '[a]n act to amend the insurance law, in relation to group capital calculations, liquidity stress tests, and confidentiality', which would amend the New York insurance law, imposing an annual group capital calculation (GCC) requirement. The legislative session ended on 2 June 2022 without Assembly action on the bill and therefore, when the legislature reconvenes, the bill must be re-introduced so that it can be considered further.

For the reasons discussed below, even if the bill were enacted as presented it may not fully satisfy the Covered Agreements between the US and the EU and the UK, respectively (the Covered Agreements), or it may leave New York open to federal pre-emption if not accompanied by appropriate regulations consistent with the National Association of Insurance Commissioners' (NAIC) Insurance Holding Company Systems Regulatory Act (the Model Act). If no