NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3189
SPONSOR: Reilly TITLE OF BILL:
An act to amend the insurance law, in relation to permitting companies
to assess various insurance quotes without having binding agreements
with insurance brokers
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this legislation is to give small businesses the freedom
to shop for multiple commercial insurance quotes without being locked
into a binding agreement with an insurance broker.
SUMMARY OF PROVISIONS:
This act amends Section 2119 of the insurance law by adding a new
subsection (g) to read as follows: "No memorandum or contract required
pursuant to subsection (a) of this section shall be binding on any
company for examining, appraising, reviewing or evaluating any insurance
policy, bond, annuity or pension or profit-sharing contract, plan or
program or for making recommendations or giving advice with regard to
any of the above by an insurance broker."
JUSTIFICATION:
This legislation comes at the request of small business owners who felt
trapped in their commercial insurance policy. If enacted, this legis-
lation would give small business owners the freedom to shop for multiple
commercial insurance quotes without having a binding agreement with an
insurance broker.
PRIOR LEGISLATIVE HISTORY:
04/19/22referred to insurance
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
EFFECTIVE DATE:
This act shall take effect on the sixtieth day after it shall become
law.
STATE OF NEW YORK
________________________________________________________________________
3189
2023-2024 Regular Sessions
IN ASSEMBLY
February 2, 2023
___________
Introduced by M. of A. REILLY -- read once and referred to the Committee
on Insurance
AN ACT to amend the insurance law, in relation to permitting companies
to assess various insurance quotes without having binding agreements
with insurance brokers
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 2119 of the insurance law is amended by adding a
2 new subsection (g) to read as follows:
3 (g) No memorandum or contract required pursuant to subsection (a) of
4 this section shall be binding on any company for examining, appraising,
5 reviewing or evaluating any insurance policy, bond, annuity or pension
6 or profit-sharing contract, plan or program or for making recommenda-
7 tions or giving advice with regard to any of the above by an insurance
8 broker.
9 § 2. This act shall take effect on the sixtieth day after it shall
10 have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02050-01-3
