Bill Text: NY A00097 | 2017-2018 | General Assembly | Amended

---

Bill Title: Permits activities of alien insurance brokers with respect to property/casualty insurance.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2017-06-20 - substituted by s3959a [A00097 Detail]

Download: New_York-2017-A00097-Amended.html

---

                STATE OF NEW YORK
        ________________________________________________________________________
                                          97--A
                               2017-2018 Regular Sessions
                   IN ASSEMBLY
                                       (Prefiled)
                                     January 4, 2017
                                       ___________
        Introduced by M. of A. CAHILL -- read once and referred to the Committee
          on  Insurance -- committee discharged, bill amended, ordered reprinted
          as amended and recommitted to said committee
        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;
    21    (B)  the policy or contract shall not be underwritten or negotiated in
    22  this state or issued or delivered in the United States;
    23    (C) the alien insurer is authorized to transact the kinds of insurance
    24  business in the jurisdictions where the policies or  contracts  will  be
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01679-03-7
        A. 97--A                            2
     1  issued or delivered and the policies or contracts are issued in conform-
     2  ance with the laws of such jurisdictions;
     3    (D)  before  engaging  in any of the activities specified in paragraph
     4  two of this subsection, the licensed insurance broker  provides  written
     5  notice  to  the  multinational  entity  that  the  alien  insurer is not
     6  licensed in or authorized to do business in this state;  the  policy  or
     7  contract  is  not  protected  by  the New York state guaranty funds; the
     8  policy or contract has not been approved by the superintendent; and  the
     9  policy or contract may not be subject to all of the laws of this state;
    10    (E) the alien insurer shall not maintain any office in this state; and
    11    (F)  except  as  specifically  provided  in this section, the licensed
    12  insurance broker shall not call attention to the alien  insurer  by  any
    13  advertisement or public announcement in this state.
    14    (2)  Subject  to paragraph one of this subsection, the licensed insur-
    15  ance broker may engage in this state in only  the  following  activities
    16  with respect to the alien insurer:
    17    (A)  provide information to the multinational entity with respect to a
    18  policy or contract of group life, group annuity, [or] group accident and
    19  health insurance, or a  property/casualty  insurance  policy  issued  or
    20  delivered or that will be issued or delivered by the alien insurer;
    21    (B)  meet  and  discuss insurance needs with the multinational entity,
    22  including providing information directly to  the  entity  in  person  or
    23  otherwise  about the policies or contracts offered by the alien insurer;
    24  and facilitating introductions with  the  multinational  entity's  human
    25  resources  and  benefits  manager  in each country in which the multina-
    26  tional entity has employee benefit needs;
    27    (C) refer the multinational entity to the alien  insurer  and  provide
    28  information to the multinational entity about the alien insurer;
    29    (D)  respond  to  requests  for  information by representatives of the
    30  multinational entity concerning quotes and any other specific terms  and
    31  conditions  of  a  group  life,  group  annuity, [or] group accident and
    32  health insurance, or  property/casualty  insurance  policy  or  contract
    33  being  negotiated  in the jurisdiction where the policy or contract will
    34  be issued or delivered by the alien insurer;
    35    (E) provide information concerning renewals of  existing  policies  or
    36  contracts  of  group life, group annuity, [or] group accident and health
    37  insurance, or a property/casualty insurance policy issued by  the  alien
    38  insurer; and
    39    (F)  manage the employee benefits program of the multinational entity,
    40  including aggregating and  reporting  employee  benefits  and  financial
    41  information about the program.
    42    (3)  Any  activity  in  which a licensed insurance broker engages with
    43  respect to an alien insurer pursuant to this subsection shall be  deemed
    44  to be included within the meaning of "any other transaction of business"
    45  for  the  purposes  of section one thousand two hundred thirteen of this
    46  article.
    47    (4) For purposes of this subsection:
    48    (A) "multinational entity" shall mean an institution that is a  member
    49  of  a  multinational group of institutions operating globally where: (i)
    50  at least one institution in the group is formed under the  laws  of  the
    51  United  States  or  has significant operations in the United States; and
    52  (ii) at least one institution in  the  group  has  offices  outside  the
    53  United States; and
    54    (B)  "group  of  institutions" shall mean a parent corporation and its
    55  subsidiaries.
    56    § 2. This act shall take effect immediately.