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
                           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.
feedback