Bill Text: NY S04761 | 2021-2022 | General Assembly | Introduced

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Bill Title: Requires securities dealers and brokers to have a professional liability insurance policy of at least one million dollars; requires proof of such insurance policy to be submitted to the department of law; requires notice of such insurance policy to be provided to clients.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-01-05 - REFERRED TO CONSUMER PROTECTION [S04761 Detail]

Download: New_York-2021-S04761-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          4761

                               2021-2022 Regular Sessions

                    IN SENATE

                                    February 10, 2021
                                       ___________

        Introduced  by  Sen.  MAY  --  read  twice and ordered printed, and when
          printed to be committed to the Committee on Consumer Protection

        AN ACT to amend the general business  law  and  the  insurance  law,  in
          relation to requiring securities dealers and brokers to have a profes-
          sional liability insurance policy of at least one million dollars

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Section 359-e of the general business  law  is  amended  by
     2  adding a new subdivision 13-a to read as follows:
     3    13-a.  (a)  Beginning  upon the effective date of this subdivision, it
     4  shall be unlawful for any dealer, broker or salesman to  sell  or  offer
     5  for  sale  to or purchase or offer to purchase from any person within or
     6  from this state, any securities issued or to be issued, unless and until
     7  such dealer, broker or salesman, or the principal of such dealer, broker
     8  or salesman shall have (i) acquired a policy for professional  liability
     9  insurance  of  at least one million dollars; (ii) provided proof of such
    10  professional liability insurance policy to the department  of  law;  and
    11  (iii) provided notice of such professional liability insurance policy to
    12  such person.
    13    (b)  Provision  of proof of professional liability insurance, pursuant
    14  to subparagraph (ii) of paragraph (a)  of  this  subdivision,  shall  be
    15  satisfied  by  submitting  to  the  department  of law an attestation of
    16  compliance on a form that shall be supplied by the  department  of  law,
    17  with a certificate of liability coverage specifying professional liabil-
    18  ity  insurance,  as such term is defined by section one hundred seven of
    19  the insurance law.
    20    (c) The provisions of this subdivision shall not apply to any  dealer,
    21  broker  or  salesman not otherwise required to register with the depart-
    22  ment of law.
    23    (d) As used in this  subdivision,  the  term  "professional  liability
    24  insurance"  shall  have  the same meaning as defined by paragraph forty-

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09443-01-1
        S. 4761                             2

     1  nine of subsection (a) of section one hundred  seven  of  the  insurance
     2  law.
     3    §  2.  Paragraph  49 of subsection (a) of section 107 of the insurance
     4  law, as added by chapter 220 of the laws of 1986, is amended to read  as
     5  follows:
     6    (49)  "Professional  liability  insurance"  means  insurance  covering
     7  liability arising out of the practice  of  any  profession  or  business
     8  practice for which (i) a license is required by a governmental authority
     9  of this state [or,]; (ii) with respect to treatment of patients, arising
    10  out of the operation of a duly certified hospital; or (iii) with respect
    11  to  the  sale  or  purchase  of  securities, a registration statement is
    12  required to be filed with the department of law.
    13    § 3. This act shall take effect on the first of January next  succeed-
    14  ing the date on which it shall have become a law. Effective immediately,
    15  the  addition,  amendment and/or repeal of any rule or regulation neces-
    16  sary for the implementation of  this  act  on  its  effective  date  are
    17  authorized to be made and completed on or before such effective date.