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S03959 Summary:

S03959 Actions:

S03959 Committee Votes:

S03959 Floor Votes:

S03959 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         3959--A
            Cal. No. 675
 
                               2017-2018 Regular Sessions
 
                    IN SENATE
 
                                    January 31, 2017
                                       ___________
 
        Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
          printed to be committed to the  Committee  on  Insurance  --  reported
          favorably  from  said  committee,  ordered to first and second report,
          ordered to a third reading, amended and ordered  reprinted,  retaining
          its place in the order of third reading

        AN  ACT  to amend the insurance law, in relation to permitting insurance
          brokers to engage in certain activities with respect to  property  and
          casualty insurance in New York
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subsection (k) of section 2117 of  the  insurance  law,  as
     2  added by chapter 64 of the laws of 2015, is amended to read as follows:
     3    (k)(1)  Notwithstanding  subsection (a) of this section, any insurance
     4  broker licensed under subparagraph (A) of paragraph  one  of  subsection
     5  (b)  of  section  two  thousand  one  hundred  four of this article with
     6  respect to life insurance or annuities, [or] subparagraph (A) or (B)  of
     7  paragraph one of subsection (b) of such section with respect to accident
     8  and health insurance, or subparagraph (B) of this paragraph with respect
     9  to property/casualty insurance may engage in the activities specified in
    10  paragraph  two  of  this subsection with respect to an alien insurer not
    11  authorized to do an insurance business in this state, provided that:
    12    (A) the activities relate to a policy or contract of group life, group
    13  annuity, [or] group accident and health insurance, or  property/casualty
    14  insurance  where the policyholder or proposed policyholder is a multina-
    15  tional entity resident outside the United States, the policy or contract
    16  covers the multinational entity's liabilities, properties, employees and
    17  their dependents, and the  liabilities  arise,  or  the  properties  and
    18  employees reside outside of the United States, except that the policy or
    19  contract  may  provide  coverage to employees who are temporarily inside
    20  the United States;
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01679-02-7
        S. 3959--A                          2
 
     1    (B) the policy or contract shall not be underwritten or negotiated  in
     2  this state or issued or delivered in the United States;
     3    (C) the alien insurer is authorized to transact the kinds of insurance
     4  business  in  the  jurisdictions where the policies or contracts will be
     5  issued or delivered and the policies or contracts are issued in conform-
     6  ance with the laws of such jurisdictions;
     7    (D) before engaging in any of the activities  specified  in  paragraph
     8  two  of  this subsection, the licensed insurance broker provides written
     9  notice to the  multinational  entity  that  the  alien  insurer  is  not
    10  licensed  in  or  authorized to do business in this state; the policy or
    11  contract is not protected by the New  York  state  guaranty  funds;  the
    12  policy  or contract has not been approved by the superintendent; and the
    13  policy or contract may not be subject to all of the laws of this state;
    14    (E) the alien insurer shall not maintain any office in this state; and
    15    (F) except as specifically provided  in  this  section,  the  licensed
    16  insurance  broker  shall  not call attention to the alien insurer by any
    17  advertisement or public announcement in this state.
    18    (2) Subject to paragraph one of this subsection, the  licensed  insur-
    19  ance  broker  may  engage in this state in only the following activities
    20  with respect to the alien insurer:
    21    (A) provide information to the multinational entity with respect to  a
    22  policy or contract of group life, group annuity, [or] group accident and
    23  health  insurance,  or  a  property/casualty  insurance policy issued or
    24  delivered or that will be issued or delivered by the alien insurer;
    25    (B) meet and discuss insurance needs with  the  multinational  entity,
    26  including  providing  information  directly  to  the entity in person or
    27  otherwise about the policies or contracts offered by the alien  insurer;
    28  and  facilitating  introductions  with  the multinational entity's human
    29  resources and benefits manager in each country  in  which  the  multina-
    30  tional entity has employee benefit needs;
    31    (C)  refer  the  multinational entity to the alien insurer and provide
    32  information to the multinational entity about the alien insurer;
    33    (D) respond to requests for  information  by  representatives  of  the
    34  multinational  entity concerning quotes and any other specific terms and
    35  conditions of a group life,  group  annuity,  [or]  group  accident  and
    36  health  insurance,  or  property/casualty  insurance  policy or contract
    37  being negotiated in the jurisdiction where the policy or  contract  will
    38  be issued or delivered by the alien insurer;
    39    (E)  provide  information  concerning renewals of existing policies or
    40  contracts of group life, group annuity, [or] group accident  and  health
    41  insurance,  or  a property/casualty insurance policy issued by the alien
    42  insurer; and
    43    (F) manage the employee benefits program of the multinational  entity,
    44  including  aggregating  and  reporting  employee  benefits and financial
    45  information about the program.
    46    (3) Any activity in which a licensed  insurance  broker  engages  with
    47  respect  to an alien insurer pursuant to this subsection shall be deemed
    48  to be included within the meaning of "any other transaction of business"
    49  for the purposes of section one thousand two hundred  thirteen  of  this
    50  article.
    51    (4) For purposes of this subsection:
    52    (A)  "multinational entity" shall mean an institution that is a member
    53  of a multinational group of institutions operating globally  where:  (i)
    54  at  least  one  institution in the group is formed under the laws of the
    55  United States or has significant operations in the  United  States;  and
        S. 3959--A                          3
 
     1  (ii)  at  least  one  institution  in  the group has offices outside the
     2  United States; and
     3    (B)  "group  of  institutions" shall mean a parent corporation and its
     4  subsidiaries.
     5    § 2. This act shall take effect immediately.