ASSEMBLY INSURANCE COMMITTEE

 

STATEMENT TO

 

SENATE COMMITTEE SUBSTITUTE FOR

SENATE, No. 933

 

STATE OF NEW JERSEY

 

DATED: SEPTEMBER 16, 1996

 

      The Assembly Insurance Committee reports favorably Senate, No. 933 (SCS).

      This bill amends the law which provides for the domestication of certain foreign insurers to clarify the accounting treatment of dividends paid in excess of earned surplus by certain foreign property-casualty insurers that became domestic insurers in 1995. The bill provides that the amount by which those dividends exceed earned surplus is to be considered return of capital and not negative earnings for accounting purposes.

      This bill is identical to the Assembly Committee Substitute for Assembly, No. 1790.