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--B
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 -- again reported from said committee with amendments, ordered
reprinted as amended and recommitted to said committee
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. A CERTIFICATE OF
19 INSURANCE SHALL NOT CONFER TO ANY PERSON NEW OR ADDITIONAL RIGHTS BEYOND
20 WHAT THE REFERENCED POLICY OF INSURANCE EXPRESSLY PROVIDES.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06628-09-3
A. 3107--B 2
1 (B) "CERTIFICATE HOLDER" MEANS ANY PERSON, OTHER THAN A POLICYHOLDER,
2 THAT IS IDENTIFIED ON THE CERTIFICATE AS A CERTIFICATE HOLDER.
3 (C) "INSURANCE PRODUCER" HAS THE MEANING ASCRIBED TO IT BY SUBSECTION
4 (K) OF SECTION TWO THOUSAND ONE HUNDRED ONE OF THIS CHAPTER.
5 (D) "INSURER" MEANS ANY PERSON "DOING AN INSURANCE BUSINESS" AS SUCH
6 PHRASE IS DEFINED IN SECTION ONE THOUSAND ONE HUNDRED ONE OF THIS CHAP-
7 TER.
8 (E) "PERSON" MEANS ANY INDIVIDUAL, PARTNERSHIP, CORPORATION, ASSOCI-
9 ATION, OR OTHER LEGAL ENTITY, INCLUDING ANY PUBLIC ENTITY AS DEFINED IN
10 PARAGRAPH FIFTY-ONE OF SUBSECTION (A) OF SECTION ONE HUNDRED SEVEN OF
11 THIS CHAPTER, ANY STATE AUTHORITY AS DEFINED IN SUBDIVISION ONE OF
12 SECTION TWO OF THE PUBLIC AUTHORITIES LAW, ANY LOCAL AUTHORITY AS
13 DEFINED IN SUBDIVISION TWO OF SECTION TWO OF THE PUBLIC AUTHORITIES LAW,
14 AND ANY INTERSTATE OR INTERNATIONAL AUTHORITY AS DEFINED IN SUBDIVISION
15 THREE OF SECTION TWO OF THE PUBLIC AUTHORITIES LAW.
16 (F) "POLICYHOLDER" MEANS A PERSON WHO HAS CONTRACTED WITH A PROPERTY
17 OR CASUALTY INSURER FOR INSURANCE COVERAGE.
18 S 502. PROHIBITIONS. (A) NO PERSON SHALL PREPARE, ISSUE, REQUEST, OR
19 REQUIRE THE ISSUANCE OF A CERTIFICATE UNLESS THE CERTIFICATE IS:
20 (1) A STANDARD CERTIFICATE OF INSURANCE FORM PROMULGATED AND AUTHOR-
21 IZED FOR USE BY THE ASSOCIATION FOR COOPERATIVE OPERATIONS RESEARCH AND
22 DEVELOPMENT (ACORD) OR THE INSURANCE SERVICES OFFICE (ISO);
23 (2) A FORM PROMULGATED BY THE INSURANCE COMPANY THAT HAS UNDERWRITTEN
24 THE POLICY REFERENCED IN THE CERTIFICATE OF INSURANCE; OR
25 (3) A FORM PREPARED, ISSUED, OR REQUESTED AS EVIDENCE OF INSURANCE IN
26 CONNECTION WITH A COMMERCIAL LENDING TRANSACTION IN WHICH THE UNDERLYING
27 PROPERTY SERVES AS THE PRIMARY COLLATERAL SECURING THE BORROWER'S REPAY-
28 MENT OF THE LOAN, INCLUDING, BUT NOT LIMITED TO A FORM PROMULGATED BY
29 THE MORTGAGE BANKERS ASSOCIATION (MBA).
30 (B) NO PERSON SHALL ALTER, MODIFY, REQUEST OR REQUIRE THE ALTERATION
31 OF A CERTIFICATE OF INSURANCE FORM.
32 (C) NO PERSON SHALL REQUEST OR REQUIRE THAT A CERTIFICATE OF INSURANCE
33 FORM CONTAIN ADDITIONAL TERMS, CONDITIONS, OR LANGUAGE OF ANY KIND NOT
34 FOUND IN THE INSURANCE POLICY TO WHICH THE CERTIFICATE MAKES REFERENCE
35 OR TO AN ENDORSEMENT TO SUCH POLICY.
36 (D) NO PERSON SHALL REQUEST OR REQUIRE EITHER IN ADDITION TO OR IN
37 LIEU OF A CERTIFICATE OF INSURANCE, AN OPINION LETTER, WARRANTY, STATE-
38 MENT, SUPPLEMENTAL CERTIFICATE OR ANY OTHER DOCUMENT OR CORRESPONDENCE
39 THAT IS INCONSISTENT WITH THE PROHIBITIONS OF THIS SECTION. HOWEVER, AN
40 INSURER OR INSURANCE PRODUCER MAY PREPARE OR ISSUE AN ADDENDUM TO A
41 CERTIFICATE THAT CLARIFIES AND EXPLAINS THE COVERAGE PROVIDED BY A POLI-
42 CY OF INSURANCE AND OTHERWISE COMPLIES WITH THE REQUIREMENTS OF THIS
43 SECTION, PROVIDED SUCH AUTHORITY IS GRANTED TO THE PRODUCER BY THE
44 INSURER.
45 (E) NO PERSON SHALL REQUEST OR REQUIRE THAT A CERTIFICATE OF INSURANCE
46 CONTAIN REFERENCES TO A CONTRACT OTHER THAN THE INSURANCE POLICY, OR
47 WARRANT THAT THE INSURANCE POLICIES REFERENCED IN THE CERTIFICATE COMPLY
48 WITH THE REQUIREMENTS OF A PARTICULAR CONTRACT PROVIDED HOWEVER A
49 CERTIFICATE MAY INCLUDE A CONTRACT TITLE OR DESCRIPTION FOR THE SOLE
50 PURPOSE OF IDENTIFYING THE PROJECT FOR WHICH THE CERTIFICATE WAS ISSUED,
51 BUT SUCH INCLUSION SHALL NOT BE INTERPRETED AS WARRANTING THAT THE
52 INSURANCE POLICIES REFERENCED IN THE CERTIFICATE COMPLY WITH THE
53 REQUIREMENTS OF SUCH CONTRACT.
54 (F) NO PERSON SHALL REQUEST, REQUIRE, PREPARE OR ISSUE A CERTIFICATE
55 OF INSURANCE THAT: (I) DOES NOT ACCURATELY STATE THE TERMS OF COVERAGE
56 PROVIDED BY THE POLICY OR POLICIES OF INSURANCE TO WHICH THE CERTIFICATE
A. 3107--B 3
1 MAKES REFERENCE; (II) PURPORTS TO ALTER, AMEND, EXTEND, OR MISREPRESENT
2 THE TERMS OF COVERAGE TO WHICH THE CERTIFICATE MAKES REFERENCE; OR (III)
3 PURPORTS TO CONFER TO ANY PERSON NEW OR ADDITIONAL RIGHTS BEYOND WHAT
4 THE REFERENCED POLICY OF INSURANCE EXPRESSLY PROVIDES.
5 S 503. APPLICABILITY. THE PROVISIONS OF THIS SECTION SHALL APPLY TO
6 ALL CERTIFICATE HOLDERS, POLICYHOLDERS, INSURERS, INSURANCE PRODUCERS,
7 OR ANY OTHER PERSON AND TO CERTIFICATE OF INSURANCE FORMS ISSUED AS
8 EVIDENCE OF INSURANCE COVERAGES ON PROPERTY, OPERATIONS, OR RISKS
9 LOCATED IN THIS STATE, REGARDLESS OF WHERE THE CERTIFICATE HOLDER, POLI-
10 CYHOLDER, INSURER, OR INSURANCE PRODUCER IS LOCATED.
11 S 504. ENFORCEMENT. THE SUPERINTENDENT SHALL HAVE THE POWER UNDER
12 SECTION FOUR HUNDRED THREE OF THE FINANCIAL SERVICES LAW TO EXAMINE AND
13 INVESTIGATE THE ACTIVITIES OF ANY PERSON THAT THE SUPERINTENDENT REASON-
14 ABLY BELIEVES HAS BEEN OR IS ENGAGED IN AN ACT OR PRACTICE PROHIBITED BY
15 THIS ARTICLE. THE SUPERINTENDENT SHALL HAVE THE POWER TO ENFORCE THE
16 PROVISIONS OF THIS SECTION AND IMPOSE ANY AUTHORIZED PENALTY OR REMEDY
17 AS PROVIDED UNDER SECTION FOUR HUNDRED EIGHT OF THE FINANCIAL SERVICES
18 LAW AGAINST ANY PERSON WHO VIOLATES THIS ARTICLE.
19 S 505. RULES AND REGULATIONS. THE SUPERINTENDENT MAY ADOPT RULES OR
20 REGULATIONS AS HE OR SHE CONSIDERS APPROPRIATE TO CARRY OUT THE
21 PROVISIONS OF THIS ARTICLE.
22 S 2. This act shall take effect on the ninetieth day after it shall
23 have become a law.
