S T A T E O F N E W Y O R K
________________________________________________________________________
3107
2013-2014 Regular Sessions
I N A S S E M B L Y
January 23, 2013
___________
Introduced by M. of A. MORELLE, HEVESI, LUPARDO, WEPRIN, PERRY, JAFFEE
-- Multi-Sponsored by -- M. of A. BRAUNSTEIN, THIELE -- read once and
referred to the Committee on Insurance
AN ACT to amend the insurance law, in relation to certificates of insur-
ance
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. The insurance law is amended by adding a new article 5 to
2 read as follows:
3 ARTICLE 5
4 CERTIFICATES OF INSURANCE
5 SECTION 501. DEFINITIONS.
6 502. PROHIBITIONS.
7 503. APPLICABILITY.
8 504. ENFORCEMENT.
9 505. RULES AND REGULATIONS.
10 S 501. DEFINITIONS. FOR PURPOSES OF THIS SECTION:
11 (A) "CERTIFICATE" OR "CERTIFICATE OF INSURANCE" MEANS ANY DOCUMENT OR
12 INSTRUMENT, NO MATTER HOW TITLED OR DESCRIBED, WHICH IS PREPARED OR
13 ISSUED BY AN INSURER OR INSURANCE PRODUCER AS A SUMMARY OR EVIDENCE OF
14 PROPERTY OR CASUALTY INSURANCE COVERAGE. "CERTIFICATE" OR "CERTIFICATE
15 OF INSURANCE" SHALL NOT INCLUDE A POLICY OF INSURANCE OR INSURANCE BIND-
16 ER, AND DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE PROVIDED BY THE
17 POLICY OF INSURANCE TO WHICH THE CERTIFICATE MAKES REFERENCE, AND IS
18 SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICY.
19 (B) "CERTIFICATE HOLDER" MEANS ANY PERSON, OTHER THAN A POLICYHOLDER,
20 THAT IS IDENTIFIED ON THE CERTIFICATE AS A CERTIFICATE HOLDER.
21 (C) "INSURANCE PRODUCER" HAS THE MEANING ASCRIBED TO IT BY SUBSECTION
22 (K) OF SECTION TWO THOUSAND ONE HUNDRED ONE OF THIS CHAPTER.
23 (D) "INSURER" MEANS ANY PERSON "DOING AN INSURANCE BUSINESS" AS SUCH
24 PHRASE IS DEFINED IN SECTION ONE THOUSAND ONE HUNDRED ONE OF THIS CHAP-
25 TER.
26 (E) "PERSON" MEANS ANY INDIVIDUAL, PARTNERSHIP, CORPORATION, ASSOCI-
27 ATION, OR OTHER LEGAL ENTITY, INCLUDING ANY PUBLIC ENTITY AS DEFINED IN
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06628-01-3
A. 3107 2
1 PARAGRAPH FIFTY-ONE OF SUBSECTION (A) OF SECTION ONE HUNDRED SEVEN OF
2 THIS CHAPTER, ANY STATE AUTHORITY AS DEFINED IN SUBDIVISION ONE OF
3 SECTION TWO OF THE PUBLIC AUTHORITIES LAW, ANY LOCAL AUTHORITY AS
4 DEFINED IN SUBDIVISION TWO OF SECTION TWO OF THE PUBLIC AUTHORITIES LAW,
5 AND ANY INTERSTATE OR INTERNATIONAL AUTHORITY AS DEFINED IN SUBDIVISION
6 THREE OF SECTION TWO OF THE PUBLIC AUTHORITIES LAW.
7 (F) "POLICYHOLDER" MEANS A PERSON WHO HAS CONTRACTED WITH A PROPERTY
8 OR CASUALTY INSURER FOR INSURANCE COVERAGE.
9 S 502. PROHIBITIONS. (A) NO PERSON SHALL PREPARE, ISSUE, REQUEST, OR
10 REQUIRE THE ISSUANCE OF A CERTIFICATE UNLESS THE CERTIFICATE IS:
11 (1) A STANDARD CERTIFICATE OF INSURANCE FORM PROMULGATED AND AUTHOR-
12 IZED FOR USE BY THE ASSOCIATION FOR COOPERATIVE OPERATIONS RESEARCH AND
13 DEVELOPMENT (ACORD) OR THE INSURANCE SERVICES OFFICE (ISO);
14 (2) A FORM PROMULGATED BY THE INSURANCE COMPANY THAT HAS UNDERWRITTEN
15 THE POLICY REFERENCED IN THE CERTIFICATE OF INSURANCE; OR
16 (3) A FORM PREPARED, ISSUED, OR REQUESTED AS EVIDENCE OF INSURANCE IN
17 CONNECTION WITH A COMMERCIAL LENDING TRANSACTION IN WHICH THE UNDERLYING
18 PROPERTY SERVES AS THE PRIMARY COLLATERAL SECURING THE BORROWER'S REPAY-
19 MENT OF THE LOAN, INCLUDING, BUT NOT LIMITED TO A FORM PROMULGATED BY
20 THE MORTGAGE BANKERS ASSOCIATION (MBA).
21 (B) NO PERSON SHALL ALTER, MODIFY, REQUEST OR REQUIRE THE ALTERATION
22 OF A CERTIFICATE OF INSURANCE FORM.
23 (C) NO PERSON SHALL REQUEST OR REQUIRE THAT A CERTIFICATE OF INSURANCE
24 FORM CONTAIN ADDITIONAL TERMS, CONDITIONS, OR LANGUAGE OF ANY KIND NOT
25 FOUND IN THE INSURANCE POLICY TO WHICH THE CERTIFICATE MAKES REFERENCE
26 OR TO AN ENDORSEMENT TO SUCH POLICY.
27 (D) NO PERSON SHALL REQUEST OR REQUIRE EITHER IN ADDITION TO OR IN
28 LIEU OF A CERTIFICATE OF INSURANCE, AN OPINION LETTER, WARRANTY, STATE-
29 MENT, SUPPLEMENTAL CERTIFICATE OR ANY OTHER DOCUMENT OR CORRESPONDENCE
30 THAT IS INCONSISTENT WITH THE PROHIBITIONS OF THIS SECTION.
31 (E) NO PERSON SHALL REQUEST OR REQUIRE THAT A CERTIFICATE OF INSURANCE
32 CONTAIN REFERENCES TO A CONTRACT OTHER THAN THE INSURANCE POLICY, OR
33 WARRANT THAT THE INSURANCE POLICIES REFERENCED IN THE CERTIFICATE COMPLY
34 WITH THE REQUIREMENTS OF A PARTICULAR CONTRACT.
35 S 503. APPLICABILITY. THE PROVISIONS OF THIS SECTION SHALL APPLY TO
36 ALL CERTIFICATE HOLDERS, POLICYHOLDERS, INSURERS, INSURANCE PRODUCERS,
37 OR ANY OTHER PERSON AND TO CERTIFICATE OF INSURANCE FORMS ISSUED AS
38 EVIDENCE OF INSURANCE COVERAGES ON PROPERTY, OPERATIONS, OR RISKS
39 LOCATED IN THIS STATE, REGARDLESS OF WHERE THE CERTIFICATE HOLDER, POLI-
40 CYHOLDER, INSURER, OR INSURANCE PRODUCER IS LOCATED.
41 S 504. ENFORCEMENT. THE SUPERINTENDENT SHALL HAVE THE POWER UNDER
42 SECTION FOUR HUNDRED THREE OF THE FINANCIAL SERVICES LAW TO EXAMINE AND
43 INVESTIGATE THE ACTIVITIES OF ANY PERSON THAT THE SUPERINTENDENT REASON-
44 ABLY BELIEVES HAS BEEN OR IS ENGAGED IN AN ACT OR PRACTICE PROHIBITED BY
45 THIS ARTICLE. THE SUPERINTENDENT SHALL HAVE THE POWER TO ENFORCE THE
46 PROVISIONS OF THIS SECTION AND IMPOSE ANY AUTHORIZED PENALTY OR REMEDY
47 AS PROVIDED UNDER SECTION FOUR HUNDRED EIGHT OF THE FINANCIAL SERVICES
48 LAW AGAINST ANY PERSON WHO VIOLATES THIS ARTICLE.
49 S 505. RULES AND REGULATIONS. THE SUPERINTENDENT MAY ADOPT RULES OR
50 REGULATIONS AS HE OR SHE CONSIDERS APPROPRIATE TO CARRY OUT THE
51 PROVISIONS OF THIS ARTICLE.
52 S 2. This act shall take effect on the ninetieth day after it shall
53 have become a law.