S09403 Summary:
| BILL NO | S09403 |
| SAME AS | SAME AS A10611 |
| SPONSOR | BAILEY |
| COSPNSR | |
| MLTSPNSR | |
| Amd §§2122, 1101 & 2117, Ins L | |
| Removes requirement for advertisements referring to an insurer to include the insurer's full name and principal office; makes technical corrections relating thereto. | |
S09403 Text:
Go to topSTATE OF NEW YORK ________________________________________________________________________ 9403 IN SENATE March 10, 2026 ___________ Introduced by Sen. BAILEY -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance AN ACT to amend the insurance law, in relation to removing the require- ment for advertisements referring to an insurer to include the insur- er's full name and principal office and making technical corrections related thereto The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 2122 of the insurance law, the section heading and 2 subsection (a) as amended by section 11 of part V of chapter 57 of the 3 laws of 2014, is amended to read as follows: 4 § 2122. Advertising by insurance producers. (a) [(1)] No insurance 5 producer shall make or issue in this state any advertisement, sign, 6 pamphlet, circular, card or other public announcement purporting to make 7 known the financial condition of any insurer, unless the same shall 8 conform to the requirements of section one thousand three hundred thir- 9 teen of this chapter. 10 [(2)] (b) No insurance producer or other person, shall, by any adver- 11 tisement or public announcement in this state, call attention to any 12 unauthorized insurer or insurers. 13 [(b) Every agent of any insurer and every insurance broker shall, in14all advertisements, public announcements, signs, pamphlets, circulars15and cards, which refer to an insurer, set forth therein the name in full16of the insurer referred to and the name of the city, town or village in17which it has its principal office in the United States.] 18 § 2. Paragraph 5 of subsection (b) of section 1101 of the insurance 19 law, as added by chapter 597 of the laws of 1999, is amended to read as 20 follows: 21 (5) Notwithstanding the foregoing, an unauthorized insurer, which (A) 22 is affiliated with an insurer licensed in this state, and (B) has satis- 23 fied all applicable requirements for placements by excess line brokers 24 as set forth in section two thousand one hundred eighteen of this chap- 25 ter, may provide from an office within the state, services to support 26 its insurance business. Such services shall not be deemed under this EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD15147-01-6S. 9403 2 1 chapter as doing an insurance business in this state. For the purposes 2 of this section these services include, but are not limited to, computer 3 operations, clerical and staffing support, underwriting, negotiating 4 contract terms, quoting premiums, binding coverage, drafting and issuing 5 policies and claims handling, investigation and payment, among other 6 incidental services. Such services shall not include the marketing, 7 soliciting or advertising by the unauthorized insurer directly to poli- 8 cyholders. Notwithstanding [paragraph two of] subsection [(a)] (b) of 9 section two thousand one hundred twenty-two of this chapter, such unau- 10 thorized insurers shall be permitted to advertise to, and market and 11 solicit through, excess line brokers licensed pursuant to section two 12 thousand one hundred five of this chapter. All obligations of such a 13 licensee under article twenty-one of this chapter shall remain in full 14 force and effect. Any document issued by the unauthorized insurer that 15 indicates any location within this state in which it conducts its oper- 16 ations shall include a prominent notice that the insurer is not licensed 17 by the state of New York, in no smaller than 10 point type, in accord- 18 ance with regulations as may be promulgated by the superintendent. 19 § 3. Subsection (i) of section 2117 of the insurance law, as added by 20 chapter 597 of the laws of 1999, is amended to read as follows: 21 (i) Notwithstanding subsection (a) of this section, a licensed insurer 22 may provide, from its office in the state, services to support the 23 insurance business of an unauthorized insurer with which it is affil- 24 iated, provided that the unauthorized insurer has satisfied all applica- 25 ble requirements for placements by excess line brokers as set forth in 26 section two thousand one hundred eighteen of this article. Such services 27 may include, but shall not be limited to, computer operations, clerical 28 and staffing support, underwriting, negotiating contract terms, quoting 29 premiums, binding coverage, drafting and issuing policies and claims 30 handling, investigation and payment, among other incidental services. 31 Services expressly prohibited under this section include the marketing, 32 soliciting or advertising by the unauthorized insurer directly to poli- 33 cyholders. Notwithstanding [paragraph two of] subsection [(a)] (b) of 34 section two thousand one hundred twenty-two of this article, such unau- 35 thorized insurers shall be permitted to advertise to, and market and 36 solicit through, excess line brokers licensed pursuant to section two 37 thousand one hundred five of this article, from an office within the 38 state. All obligations of such licensee under this article shall remain 39 in full force and effect. Any document issued by an unauthorized insurer 40 that indicates any location within this state in which it conducts its 41 operations shall include a prominent notice that the insurer is not 42 licensed by the state of New York, in no smaller than 10 point type, in 43 accordance with regulations as may be promulgated by the superintendent. 44 § 4. This act shall take effect immediately.