Bill Text: NY A03107 | 2013-2014 | General Assembly | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relates to the issuance of certificates of insurance and requires the issuance of a certificate of insurance as a summary or evidence of property or casualty insurance.
Spectrum: Strong Partisan Bill (Democrat 11-1)
Status: (Vetoed) 2013-12-18 - tabled [A03107 Detail]
Download: New_York-2013-A03107-Amended.html
Bill Title: Relates to the issuance of certificates of insurance and requires the issuance of a certificate of insurance as a summary or evidence of property or casualty insurance.
Spectrum: Strong Partisan Bill (Democrat 11-1)
Status: (Vetoed) 2013-12-18 - tabled [A03107 Detail]
Download: New_York-2013-A03107-Amended.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 3107--A 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 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said commit- tee 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 EVIDENCE OF PROPERTY OR 14 CASUALTY INSURANCE COVERAGE. "CERTIFICATE" OR "CERTIFICATE OF INSURANCE" 15 SHALL NOT INCLUDE A POLICY OF INSURANCE OR INSURANCE BINDER, AND DOES 16 NOT AMEND, EXTEND OR ALTER THE COVERAGE PROVIDED BY THE POLICY OF INSUR- 17 ANCE TO WHICH THE CERTIFICATE MAKES REFERENCE, AND IS SUBJECT TO ALL THE 18 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. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06628-03-3 A. 3107--A 2 1 (D) "INSURER" MEANS ANY PERSON "DOING AN INSURANCE BUSINESS" AS SUCH 2 PHRASE IS DEFINED IN SECTION ONE THOUSAND ONE HUNDRED ONE OF THIS CHAP- 3 TER. 4 (E) "PERSON" MEANS ANY INDIVIDUAL, PARTNERSHIP, CORPORATION, ASSOCI- 5 ATION, OR OTHER LEGAL ENTITY, INCLUDING ANY PUBLIC ENTITY AS DEFINED IN 6 PARAGRAPH FIFTY-ONE OF SUBSECTION (A) OF SECTION ONE HUNDRED SEVEN OF 7 THIS CHAPTER, ANY STATE AUTHORITY AS DEFINED IN SUBDIVISION ONE OF 8 SECTION TWO OF THE PUBLIC AUTHORITIES LAW, ANY LOCAL AUTHORITY AS 9 DEFINED IN SUBDIVISION TWO OF SECTION TWO OF THE PUBLIC AUTHORITIES LAW, 10 AND ANY INTERSTATE OR INTERNATIONAL AUTHORITY AS DEFINED IN SUBDIVISION 11 THREE OF SECTION TWO OF THE PUBLIC AUTHORITIES LAW. 12 (F) "POLICYHOLDER" MEANS A PERSON WHO HAS CONTRACTED WITH A PROPERTY 13 OR CASUALTY INSURER FOR INSURANCE COVERAGE. 14 S 502. PROHIBITIONS. (A) NO PERSON SHALL PREPARE, ISSUE, REQUEST, OR 15 REQUIRE THE ISSUANCE OF A CERTIFICATE UNLESS THE CERTIFICATE IS: 16 (1) A STANDARD CERTIFICATE OF INSURANCE FORM PROMULGATED AND AUTHOR- 17 IZED FOR USE BY THE ASSOCIATION FOR COOPERATIVE OPERATIONS RESEARCH AND 18 DEVELOPMENT (ACORD) OR THE INSURANCE SERVICES OFFICE (ISO); 19 (2) A FORM PROMULGATED BY THE INSURANCE COMPANY THAT HAS UNDERWRITTEN 20 THE POLICY REFERENCED IN THE CERTIFICATE OF INSURANCE; OR 21 (3) A FORM PREPARED, ISSUED, OR REQUESTED AS EVIDENCE OF INSURANCE IN 22 CONNECTION WITH A COMMERCIAL LENDING TRANSACTION IN WHICH THE UNDERLYING 23 PROPERTY SERVES AS THE PRIMARY COLLATERAL SECURING THE BORROWER'S REPAY- 24 MENT OF THE LOAN, INCLUDING, BUT NOT LIMITED TO A FORM PROMULGATED BY 25 THE MORTGAGE BANKERS ASSOCIATION (MBA). 26 (B) NO PERSON SHALL ALTER, MODIFY, REQUEST OR REQUIRE THE ALTERATION 27 OF A CERTIFICATE OF INSURANCE FORM. 28 (C) NO PERSON SHALL REQUEST OR REQUIRE THAT A CERTIFICATE OF INSURANCE 29 FORM CONTAIN ADDITIONAL TERMS, CONDITIONS, OR LANGUAGE OF ANY KIND NOT 30 FOUND IN THE INSURANCE POLICY TO WHICH THE CERTIFICATE MAKES REFERENCE 31 OR TO AN ENDORSEMENT TO SUCH POLICY. 32 (D) NO PERSON SHALL REQUEST OR REQUIRE EITHER IN ADDITION TO OR IN 33 LIEU OF A CERTIFICATE OF INSURANCE, AN OPINION LETTER, WARRANTY, STATE- 34 MENT, SUPPLEMENTAL CERTIFICATE OR ANY OTHER DOCUMENT OR CORRESPONDENCE 35 THAT IS INCONSISTENT WITH THE PROHIBITIONS OF THIS SECTION. HOWEVER, AN 36 INSURER OR INSURANCE PRODUCER MAY PREPARE OR ISSUE AN ADDENDUM TO A 37 CERTIFICATE THAT CLARIFIES AND EXPLAINS THE COVERAGE PROVIDED BY A POLI- 38 CY OF INSURANCE AND OTHERWISE COMPLIES WITH THE REQUIREMENTS OF THIS 39 SECTION, PROVIDED SUCH AUTHORITY IS GRANTED TO THE PRODUCER BY THE 40 INSURER. 41 (E) NO PERSON SHALL REQUEST OR REQUIRE THAT A CERTIFICATE OF INSURANCE 42 CONTAIN REFERENCES TO A CONTRACT OTHER THAN THE INSURANCE POLICY, OR 43 WARRANT THAT THE INSURANCE POLICIES REFERENCED IN THE CERTIFICATE COMPLY 44 WITH THE REQUIREMENTS OF A PARTICULAR CONTRACT PROVIDED HOWEVER A 45 CERTIFICATE MAY INCLUDE A CONTRACT TITLE OR DESCRIPTION FOR THE SOLE 46 PURPOSE OF IDENTIFYING THE PROJECT FOR WHICH THE CERTIFICATE WAS ISSUED, 47 BUT SUCH INCLUSION SHALL NOT BE INTERPRETED AS WARRANTING THAT THE 48 INSURANCE POLICIES REFERENCED IN THE CERTIFICATE COMPLY WITH THE 49 REQUIREMENTS OF SUCH CONTRACT. 50 (F) NO PERSON SHALL REQUEST, REQUIRE, PREPARE OR ISSUE A CERTIFICATE 51 OF INSURANCE THAT: (I) DOES NOT ACCURATELY STATE THE TERMS OF COVERAGE 52 PROVIDED BY THE POLICY OR POLICIES OF INSURANCE TO WHICH THE CERTIFICATE 53 MAKES REFERENCE; OR (II) PURPORTS TO ALTER, AMEND, EXTEND, OR MISREPRE- 54 SENT THE TERMS OF COVERAGE TO WHICH THE CERTIFICATE MAKES REFERENCE. 55 S 503. APPLICABILITY. THE PROVISIONS OF THIS SECTION SHALL APPLY TO 56 ALL CERTIFICATE HOLDERS, POLICYHOLDERS, INSURERS, INSURANCE PRODUCERS, A. 3107--A 3 1 OR ANY OTHER PERSON AND TO CERTIFICATE OF INSURANCE FORMS ISSUED AS 2 EVIDENCE OF INSURANCE COVERAGES ON PROPERTY, OPERATIONS, OR RISKS 3 LOCATED IN THIS STATE, REGARDLESS OF WHERE THE CERTIFICATE HOLDER, POLI- 4 CYHOLDER, INSURER, OR INSURANCE PRODUCER IS LOCATED. 5 S 504. ENFORCEMENT. THE SUPERINTENDENT SHALL HAVE THE POWER UNDER 6 SECTION FOUR HUNDRED THREE OF THE FINANCIAL SERVICES LAW TO EXAMINE AND 7 INVESTIGATE THE ACTIVITIES OF ANY PERSON THAT THE SUPERINTENDENT REASON- 8 ABLY BELIEVES HAS BEEN OR IS ENGAGED IN AN ACT OR PRACTICE PROHIBITED BY 9 THIS ARTICLE. THE SUPERINTENDENT SHALL HAVE THE POWER TO ENFORCE THE 10 PROVISIONS OF THIS SECTION AND IMPOSE ANY AUTHORIZED PENALTY OR REMEDY 11 AS PROVIDED UNDER SECTION FOUR HUNDRED EIGHT OF THE FINANCIAL SERVICES 12 LAW AGAINST ANY PERSON WHO VIOLATES THIS ARTICLE. 13 S 505. RULES AND REGULATIONS. THE SUPERINTENDENT MAY ADOPT RULES OR 14 REGULATIONS AS HE OR SHE CONSIDERS APPROPRIATE TO CARRY OUT THE 15 PROVISIONS OF THIS ARTICLE. 16 S 2. This act shall take effect on the ninetieth day after it shall 17 have become a law.