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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                           97
                               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
        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, properties and  employees  reside
    18  outside  of  the  United  States, except that the policy or contract may
    19  provide coverage to employees who  are  temporarily  inside  the  United
    20  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;
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01679-01-7
        A. 97                               2
     1    (C) the alien insurer is authorized to transact the kinds of insurance
     2  business in the jurisdictions where the policies or  contracts  will  be
     3  issued or delivered and the policies or contracts are issued in conform-
     4  ance with the laws of such jurisdictions;
     5    (D)  before  engaging  in any of the activities specified in paragraph
     6  two of this subsection, the licensed insurance broker  provides  written
     7  notice  to  the  multinational  entity  that  the  alien  insurer is not
     8  licensed in or authorized to do business in this state;  the  policy  or
     9  contract  is  not  protected  by  the New York state guaranty funds; the
    10  policy or contract has not been approved by the superintendent; and  the
    11  policy or contract may not be subject to all of the laws of this state;
    12    (E) the alien insurer shall not maintain any office in this state; and
    13    (F)  except  as  specifically  provided  in this section, the licensed
    14  insurance broker shall not call attention to the alien  insurer  by  any
    15  advertisement or public announcement in this state.
    16    (2)  Subject  to paragraph one of this subsection, the licensed insur-
    17  ance broker may engage in this state in only  the  following  activities
    18  with respect to the alien insurer:
    19    (A)  provide information to the multinational entity with respect to a
    20  policy or contract of group life, group annuity, [or] group accident and
    21  health insurance, or a  property/casualty  insurance  policy  issued  or
    22  delivered or that will be issued or delivered by the alien insurer;
    23    (B)  meet  and  discuss insurance needs with the multinational entity,
    24  including providing information directly to  the  entity  in  person  or
    25  otherwise  about the policies or contracts offered by the alien insurer;
    26  and facilitating introductions with  the  multinational  entity's  human
    27  resources  and  benefits  manager  in each country in which the multina-
    28  tional entity has employee benefit needs;
    29    (C) refer the multinational entity to the alien  insurer  and  provide
    30  information to the multinational entity about the alien insurer;
    31    (D)  respond  to  requests  for  information by representatives of the
    32  multinational entity concerning quotes and any other specific terms  and
    33  conditions  of  a  group  life,  group  annuity, [or] group accident and
    34  health insurance, or  property/casualty  insurance  policy  or  contract
    35  being  negotiated  in the jurisdiction where the policy or contract will
    36  be issued or delivered by the alien insurer;
    37    (E) provide information concerning renewals of  existing  policies  or
    38  contracts  of  group life, group annuity, [or] group accident and health
    39  insurance, or a property/casualty insurance policy issued by  the  alien
    40  insurer; and
    41    (F)  manage the employee benefits program of the multinational entity,
    42  including aggregating and  reporting  employee  benefits  and  financial
    43  information about the program.
    44    (3)  Any  activity  in  which a licensed insurance broker engages with
    45  respect to an alien insurer pursuant to this subsection shall be  deemed
    46  to be included within the meaning of "any other transaction of business"
    47  for  the  purposes  of section one thousand two hundred thirteen of this
    48  article.
    49    (4) For purposes of this subsection:
    50    (A) "multinational entity" shall mean an institution that is a  member
    51  of  a  multinational group of institutions operating globally where: (i)
    52  at least one institution in the group is formed under the  laws  of  the
    53  United  States  or  has significant operations in the United States; and
    54  (ii) at least one institution in  the  group  has  offices  outside  the
    55  United States; and
        A. 97                               3
     1    (B)  "group  of  institutions" shall mean a parent corporation and its
     2  subsidiaries.
     3    § 2. This act shall take effect immediately.