Bill Text: NY S05805 | 2017-2018 | General Assembly | Introduced
Bill Title: Relates to foreign insurers deemed to be domestic insurers (Part A); relates to the national association of registered agents and brokers (Part B).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-01-03 - REFERRED TO INSURANCE [S05805 Detail]
Download: New_York-2017-S05805-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 5805 2017-2018 Regular Sessions IN SENATE May 1, 2017 ___________ Introduced by Sen. SEWARD -- (at request of the Department of Financial Services) -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance AN ACT to amend the insurance law, in relation to foreign insurers deemed to be domestic insurers (Part A); and to amend the insurance law and the tax law, in relation to the national association of regis- tered agents and brokers; and to repeal certain provisions of the insurance law thereto (Part B) The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act enacts into law major components of legislation 2 relating to foreign insurers deemed to be domestic insurers, assess- 3 ments, distribution of assets, insurers deemed to be in a hazardous 4 financial condition, the national association of registered agents and 5 brokers, and technical amendments. Each component is wholly contained 6 within a Part identified as Parts A through B. The effective date for 7 each particular provision contained within such Part is set forth in the 8 last section of such Part. Any provision in any section contained within 9 a Part, including the effective date of the Part, which makes a refer- 10 ence to a section "of this act", when used in connection with that 11 particular component, shall be deemed to mean and refer to the corre- 12 sponding section of the Part in which it is found. Section three of this 13 act sets forth the general effective date of this act. 14 PART A 15 Section 1. Subsection (d) of section 1501 of the insurance law, as 16 added by chapter 380 of the laws of 1989, is amended to read as follows: 17 (d) For the purposes of this article only, every foreign life insurer 18 which is authorized to do business in this state [which is controlled by19a person not authorized to do an insurance business in this state, and] EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD10099-02-7S. 5805 2 1 which, during its three preceding fiscal years taken together, or during 2 any lesser period of time if it has been licensed to transact its busi- 3 ness in New York only for such lesser period of time, has written an 4 average of more gross premiums in the state of New York than it has 5 written in its state of domicile during the same period, and such gross 6 premiums written constitute twenty percent or more of its total gross 7 premiums written everywhere in the United States for such three year or 8 lesser period, as reported in its three most recent annual statements, 9 shall be deemed a domestic insurer, provided written notice of the 10 applicability of this subsection is given to such company by the super- 11 intendent prior to this article being applicable. 12 § 2. Subsection (a) of section 1502 of the insurance law is amended to 13 read as follows: 14 (a) Notwithstanding any other provision of this article the following 15 shall not be deemed a holding [companies] company: 16 (1) [authorized insurers] any domestic insurer, [including alien17insurers transacting business in this state through United States18branches] except an insurer deemed to be a domestic insurer pursuant to 19 subsection (d) of section one thousand five hundred one of this article, 20 or [their subsidiaries] any subsidiary of such a domestic insurer; or 21 (2) the United States, a state or any political subdivision, agency or 22 instrumentality thereof, or any corporation wholly owned directly or 23 indirectly by one or more of the foregoing. 24 § 3. Subsection (a) of section 1506 of the insurance law, as amended 25 by chapter 238 of the laws of 2013, is amended to read as follows: 26 (a) No person, other than [an authorized] a domestic insurer that is 27 not an insurer deemed to be a domestic insurer pursuant to section one 28 thousand five hundred one of this article, shall acquire control of any 29 domestic insurer, whether by purchase of its securities or otherwise, 30 unless: 31 (1) it gives twenty days written notice to the insurer, or such short- 32 er period of notice as the superintendent permits, of its intention to 33 acquire control, provided that the notice shall include an agreement by 34 the person seeking to acquire control that the person will provide the 35 annual report specified in section one thousand five hundred three of 36 this article for so long as control exists; and 37 (2) it receives the superintendent's prior approval. 38 § 4. Subsection (a) of section 1603 of the insurance law, as amended 39 by chapter 238 of the laws of 2013, is amended to read as follows: 40 (a) A domestic insurer shall not acquire control of any [other domes-41tic insurer] institution, whether by purchase of its securities or 42 otherwise, unless: 43 (1) a notice of intention of such proposed acquisition shall have been 44 filed with the superintendent not less than ninety days, or such shorter 45 period as may be permitted by the superintendent, in advance of such 46 proposed acquisition; and 47 (2) the insurer receives the superintendent's prior approval. 48 § 5. This act shall take effect immediately. 49 PART B 50 Section 1. Subsection (a) of section 110 of the insurance law, as 51 amended by chapter 238 of the laws of 2013, is amended to read as 52 follows: 53 (a) In order to assist in the performance of the superintendent's 54 duties under this chapter, the superintendent:S. 5805 3 1 (1) may share documents, materials or other information, including 2 confidential and privileged documents, materials or information with 3 other state, federal, and international regulatory agencies, with the 4 National Association of Insurance Commissioners, its affiliates or 5 subsidiaries, with the national association of registered agents and 6 brokers and with state, federal, and international law enforcement 7 authorities, including members of any supervisory college described in 8 section three hundred two of this chapter, provided that the recipient 9 has the authority and agrees to maintain the confidentiality and privi- 10 leged status of the document, material or other information; provided, 11 however, that this paragraph shall not be construed as limiting access 12 to records pursuant to article six of the public officers law; 13 (2) may receive documents, materials or information, including other- 14 wise confidential and privileged documents, materials or information, 15 from the National Association of Insurance Commissioners, its affiliates 16 or subsidiaries, the national association of registered agents and 17 brokers, and from regulatory and law enforcement officials of other 18 foreign or domestic jurisdictions, including members of any supervisory 19 college described in section three hundred two of this chapter, and 20 shall maintain as confidential or privileged any document, material or 21 information received with notice or the understanding that it is confi- 22 dential or privileged under the laws of the jurisdiction that is the 23 source of the document, material or information; and 24 (3) may enter into agreements governing sharing and use of documents, 25 materials or information consistent with this subsection. 26 § 2. Paragraph 2 of subsection (a) of section 2101 of the insurance 27 law, as amended by chapter 687 of the laws of 2003, is amended to read 28 as follows: 29 (2) [employees] an employee of [insurers] an insurer, fraternal bene- 30 fit [societies] society or health maintenance [organizations] organiza- 31 tion or [organizations] an organization employed by [insurers] an insur- 32 er, fraternal benefit [societies] society, or health maintenance 33 [organizations] organization who [are] is engaging in the inspection, 34 rating or classification of risks, or in the supervision of the training 35 of licensed insurance producers and who [are] is not individually 36 engaged in the sale, solicitation or negotiation of insurance; 37 § 3. Subparagraphs (C), (D), and (E) of paragraph 1 of subsection (g) 38 of section 2101 of the insurance law, as amended by chapter 301 of the 39 laws of 2008, are amended to read as follows: 40 (C) any officer, director or regular salaried employee of [an article41fifteen] a holding company as defined in article fifteen of this chap- 42 ter, or a controlled person within such holding company system providing 43 administrative services within that holding company, any officer, direc- 44 tor or regular salaried employee of a domestic insurer subject to arti- 45 cle sixteen of this chapter or a subsidiary of the domestic insurer 46 providing administrative services within that article sixteen system, or 47 any officer, director, or regular salaried employee of a parent corpo- 48 ration subject to article seventeen of this chapter or a subsidiary of 49 the parent corporation providing administrative services within that 50 article seventeen system, or any manager thereof, individual or corpo- 51 rate, when the claim to be adjusted is submitted for payment under a 52 health benefit plan that is issued or administered by a health insurer 53 or health maintenance organization within that same [holding company] 54 system; 55 (D) any officer, director or regular salaried employee of an author- 56 ized insurer that is licensed to write the kind of insurance to beS. 5805 4 1 adjusted, or any manager thereof, individual or corporate, when the 2 claim to be adjusted is pursuant to a policy that is issued or adminis- 3 tered by another insurer within the same holding company system, as 4 defined in article fifteen of this chapter, or within the same system 5 under article sixteen or seventeen of this chapter, as the authorized 6 insurer adjusting the claim, unless acting as an auto body repair esti- 7 mator as defined in subsection (j) of this section; 8 (E) any officer, director or regular salaried employee of an author- 9 ized life insurance company, or any manager thereof, individual or 10 corporate, or the manager, agent or general agent of any department 11 thereof, individual or corporate, when the claim to be adjusted is 12 submitted under an insurance contract issued by another insurer and the 13 claim: (i) is within the scope of a contract of reinsurance between the 14 two insurers for all of the underlying risks and none of the underlying 15 risks are later reinsured back to the ceding insurer or an affiliate, 16 parent or subsidiary of the ceding insurer; and (ii) relates to a kind 17 of insurance that the authorized life insurance company adjusting the 18 claim is licensed to write; 19 § 4. Subsections (l), (m), (n), (o), and (w) of section 2101 of the 20 insurance law, subsections (l), (m), (n), and (o) as added by chapter 21 687 of the laws of 2003 and subsection (w) as added by section 4 of part 22 I of chapter 61 of the laws of 2011, are amended and a new subsection 23 (z) is added to read as follows: 24 (l) In this article, "home state" means [the District of Columbia or] 25 any state [or territory of the United States] in which an insurance 26 producer maintains his, her or its principal place of residence or prin- 27 cipal place of business and is licensed to act as an insurance producer. 28 For the purposes of this definition: 29 (1) "principal place of business" means the state in which: 30 (A) an insurance producer maintains the insurance producer's headquar- 31 ters and, in the case of a business entity, where high-level officers of 32 the entity direct, control, and coordinate the business activities of 33 the business entity; or 34 (B) if an insurance producer maintains the insurance producer's head- 35 quarters and, in the case of a business entity, the entity's high-level 36 officers of the entity direct, control, and coordinate the business 37 activities of the business entity, in more than one state or outside the 38 United States, then the state listed in the address section of the 39 insurance producer's licensing application; and 40 (2) "principal place of residence" means the state in which an insur- 41 ance producer resides for the greatest number of days during a calendar 42 year. 43 (m) In this article, "negotiate" or "negotiation" means the act of 44 conferring directly with or offering advice directly to a purchaser or 45 prospective purchaser of a particular contract of insurance concerning 46 any of the substantive benefits, terms or conditions of the contract, 47 provided that the person engaged in that act either sells insurance or 48 obtains insurance from [licensed insurers] an insurer, a fraternal bene- 49 fit [societies] society, or a health maintenance [organizations] organ- 50 ization for purchasers. 51 (n) In this article, "sell" or "sale" means to exchange a contract of 52 insurance by any means, for money or its equivalent, on behalf of [a53licensed] an insurer, fraternal benefit society or health maintenance 54 organization. 55 (o) In this article, "solicit" or "solicitation" means attempting to 56 sell insurance or asking or urging a person to apply for a particularS. 5805 5 1 kind of insurance from a particular [licensed] insurer, fraternal bene- 2 fit society or health maintenance organization. 3 (w) In this article, "state" means the District of Columbia or any 4 state, commonwealth, or territory of the United States. 5 (z) In this article, "national association" means the national associ- 6 ation of registered agents and brokers, and any successor, as estab- 7 lished pursuant to 15 U.S.C. § 6751 et. seq. 8 § 5. Paragraphs 6 and 7 of subsection (r) of section 2101 of the 9 insurance law, as added by chapter 687 of the laws of 2003, are amended 10 to read as follows: 11 (6) mortgage guaranty: insurance coverage providing protection against 12 financial loss by reason of nonpayment of any sum required to be paid 13 under the terms of any instrument of indebtedness secured by a lien on 14 real estate; 15 (7) personal lines: property/casualty insurance coverage sold to indi- 16 viduals and families for primarily noncommercial purposes; and 17 [(7)] (8) in a regulation promulgated by, and at the discretion of, 18 the superintendent, any other [line] kind of insurance or sub-class of a 19 kind of insurance permitted pursuant to this chapter. 20 § 6. Subsections (a) and (b) of section 2103 of the insurance law, as 21 amended by chapter 687 of the laws of 2003, are amended to read as 22 follows: 23 (a) The superintendent may issue a license to any person, firm or 24 corporation who or [which] that has complied with the requirements of 25 this chapter, authorizing [such] the licensee to act as an insurance 26 agent with respect to the lines of authority for life [insurance], vari- 27 able life and variable annuity products, [or] accident and health 28 [insurance and] or sickness credit, as provided under subparagraph (A) 29 of paragraph two of subsection (r) of section two thousand one hundred 30 one of this article, or any other line of authority deemed to be similar 31 by the superintendent, including, for this purpose, health maintenance 32 organization contracts, legal services insurance, or with respect to any 33 combination of the above, as specified in [such] the license, on behalf 34 of any insurer, fraternal benefit society, or health maintenance organ- 35 ization[, which] that is authorized to do such kind or kinds of insur- 36 ance or health maintenance organization business in this state. 37 (b) The superintendent may issue a license to any person, firm, asso- 38 ciation or corporation who or [which] that has complied with the 39 requirements of this chapter, authorizing the licensee to act as agent 40 of any authorized insurer, other than an insurer specified in subsection 41 (b) of section two thousand one hundred fifteen of this article, with 42 respect to the lines of authority for accident and health or sickness, 43 property, casualty, personal lines [or], mortgage guaranty, credit, as 44 provided under paragraph six of subsection (r) of section two thousand 45 one hundred one of this article, crop, any other line of authority 46 granted other than life, and variable life and variable annuity 47 products, [which such] or any other line of authority the superintendent 48 determines to be similar thereto, that the insurer is authorized to do 49 in this state. 50 § 7. Subparagraphs (A) and (B) of paragraph 2 of subsection (f) of 51 section 2103 of the insurance law, as amended by chapter 687 of the laws 52 of 2003, are amended to read as follows: 53 (A) (i) For individuals seeking to qualify to obtain a license under 54 subsection (a) of this section, [one examination adapted to test the55qualifications for a life insurance agent's license, another adapted to56test the qualifications for an accident and health insurance agent'sS. 5805 6 1license and another adapted to test the qualifications for a legal2services insurance license] examinations adapted to test the qualifica- 3 tions for the lines of authority subject to such subsection. Each such 4 individual shall be required to pass the type or types of examination 5 prescribed by the superintendent for the line or lines of authority, as 6 specified in subsection (a) of this section, for which the license is 7 sought. 8 (ii) No individual shall be deemed qualified to take the examination 9 or examinations unless [he shall have] the individual has successfully 10 completed a course or courses, approved as to method and content by the 11 superintendent, covering the principal branches and contracts of life 12 insurance, annuity contracts, disability insurance, and accident and 13 health insurance [and related insurance] and requiring not less than 14 forty hours of classroom work or the equivalent in correspondence work 15 or similar instruction, provided, however, that, at the discretion of 16 the superintendent, insurance subject material may be eliminated from 17 course content, with a corresponding reduction in course hours, if an 18 insurer is not authorized to transact such kind or kinds of insurance in 19 this state. 20 [Such] (iii) The course or courses either shall have been given by a 21 degree conferring college or university [which has] that had, when 22 [such] the course [is] was taken by [such] the individual, a curriculum 23 or curricula registered with the state education department, whether 24 [such] the course be given as part of any such curricula or separately, 25 or by any other institution or life or accident and health insurer 26 [which] that maintains equivalent standards of instruction, and [which27shall have] that has been approved for such purpose by the superinten- 28 dent. 29 (B) For individuals seeking to qualify to obtain a license under 30 subsection (b) of this section, [not more than six types of examina-31tions, each adapted to test the qualifications of an individual with32respect to the kinds of insurance business specified in such classifica-33tion] examinations adapted to test the qualifications for the lines of 34 authority subject to such subsection. Every [such] individual shall be 35 required to pass the type or types of examination prescribed by the 36 superintendent for the line or lines of authority for which the license 37 is sought. No individual shall be deemed qualified to take the examina- 38 tion unless [he] the individual shall have successfully completed a 39 course or courses, approved as to method and content by the superinten- 40 dent, covering the principal branches of the insurance business and 41 requiring not less than ninety hours of classroom work[,] in, or the 42 equivalent in correspondence work or similar instruction offered by, 43 institutions of learning meeting the standards prescribed by paragraph 44 one of subsection (a) of section two thousand one hundred four of this 45 article; provided, however, with respect to a license issued pursuant to 46 subsection (b) of this section for a personal line of authority, there 47 shall be required not less than forty hours of such classroom work. 48 § 8. Paragraphs 1, 9, and 10 of subsection (g) of section 2103 of the 49 insurance law, paragraphs 9 and 10 as amended by chapter 687 of the laws 50 of 2003, are amended to read as follows: 51 (1) as a prerequisite to the issuance of a [baggage or accident and52health insurance] travel insurance agent's license to any ticket selling 53 agent or representative of a railroad company, steamship company, carri- 54 er by air, [or] public bus carrier, or other common carrier, who shall 55 act [thereunder] as an insurance agent only in reference to [the issu-56ance of] insurance coverage for trip cancellation, trip interruption,S. 5805 7 1 baggage [or], accident [insurance tickets primarily for the purpose of2covering risk of travel] and health, disability and personal effects, 3 when limited to a specific trip and sold in connection with transporta- 4 tion provided by the common carrier; 5 (9) in the discretion of the superintendent, as to all or any part of 6 the written examination or the prerequisite minimum forty hour pre-li- 7 censing course specified in subparagraph (A) of paragraph two of 8 subsection (f) of this section, of any individual seeking to be named a 9 licensee or sub-licensee, upon whom has been conferred the Chartered 10 Life Underwriter (C.L.U.) [or Chartered Life Underwriter Associate11designation], Chartered Financial Consultant (Ch.F.C.), or the Master of 12 Science in Financial Services (M.S.F.S.) designations by [The] the Amer- 13 ican College of Financial Services, or any other designation that the 14 superintendent determines is acceptable pursuant to a regulation; 15 (10) in the discretion of the superintendent, as to all or any part of 16 the written examination or the prerequisite minimum ninety hour pre-li- 17 censing course specified in subparagraph (B) of paragraph two of 18 subsection (f) of this section, of any individual seeking to be named a 19 licensee or sublicensee, upon whom has been conferred the Chartered 20 Property Casualty Underwriter (C.P.C.U.) designation by the American 21 Institute for Chartered Property [and Liability] Casualty Underwriters, 22 or any other designation that the superintendent determines is accepta- 23 ble pursuant to a regulation; or 24 § 9. Paragraph 10 of subsection (j) of section 2103 of the insurance 25 law is REPEALED. 26 § 9-a. Paragraphs 11, 12, and 13 of subsection (j) of section 2103 of 27 the insurance law are renumbered paragraphs 10, 11, and 12, and para- 28 graph 9, as amended by section 2 of part F of chapter 59 of the laws of 29 2005, is amended to read as follows: 30 (9) In addition to any examination fee required by subsection (f) of 31 this section, there shall be paid to the superintendent for each indi- 32 vidual license applicant and each proposed sub-licensee the sum of 33 [forty] forty-five dollars for each year or fraction of a year in which 34 a license shall be valid. If, however, the license applicant or a 35 proposed sub-licensee should withdraw the application or the superinten- 36 dent should deny the application before the license applied for is 37 issued, then the superintendent may refund the fee paid by the applicant 38 for the license applied for with the exception of any examination fees 39 required pursuant to subsection (f) of this section. 40 § 10. Paragraph 1 of subsection (c) of section 2104 of the insurance 41 law, as amended by chapter 505 of the laws of 2000, is amended to read 42 as follows: 43 (1) Every individual applicant for such license and every proposed 44 sub-licensee shall be of the age of eighteen years or over at the time 45 of the issuance of such license. No individual shall be deemed qualified 46 to obtain such license or to be named as sub-licensee therein unless 47 [he] the individual shall comply with the requirements of subparagraph 48 (A), (B) or (C) following: 49 (A) [He] The individual shall have successfully completed a course or 50 courses, approved as to method and content by the superintendent, cover- 51 ing the principal branches of the insurance business and requiring, in 52 the case of a license under subparagraph (B) of paragraph one of 53 subsection (b) of this section, not less than ninety hours, and in the 54 case of a license under subparagraph (A) of paragraph one of subsection 55 (b) of this section, not less than forty hours of classroom work or the 56 equivalent thereof in correspondence work. [Such] The course or coursesS. 5805 8 1 either were given by a degree conferring college or university which 2 [has] had, when [such] the course [is] was taken by such individual, a 3 curriculum or curricula registered with the state education department, 4 whether [such] the course [be] was given as a part of any such curric- 5 ulum or separately, [or were given by the The College of Insurance,] or 6 by any other institution [which] that maintains equivalent standards of 7 instruction[, which has been continuously in existence for not less than8five years prior to the taking of such course by such individual,] and 9 [which shall have been] was approved for such purpose by the superinten- 10 dent. 11 (B) [He] The individual shall have been regularly employed by an 12 insurance company or an insurance agent or an insurance broker, for a 13 period or periods aggregating not less than one year during the three 14 years next preceding the date of application, in the case of a license 15 under subparagraph (B) of paragraph one of subsection (b) of this 16 section, in responsible insurance duties relating to the underwriting or 17 adjusting of losses in any one or more of the following branches of 18 insurance: fire, marine, liability and workers' compensation, and fidel- 19 ity and surety; in the case of a license under subparagraph (A) of para- 20 graph one of subsection (b) of this section in responsible insurance 21 duties relating to the use of life insurance, accident and health insur- 22 ance and annuity contracts in the design and administration of plans for 23 estate conservation and distribution, employee benefits and business 24 continuation; and [he] the individual shall submit with his or her 25 application a statement subscribed and affirmed as true under the penal- 26 ties of perjury by such employer or employers stating facts [which] that 27 show compliance with this requirement. 28 (C) [He] The individual shall have been regularly employed by an 29 insurance company or an insurance agent or an insurance broker, for a 30 period or periods aggregating not less than one year, during the three 31 years next preceding the date of entrance into the service of the armed 32 forces of the United States or immediately following [his] the individ- 33 ual's discharge therefrom, in the case of a license under subparagraph 34 (B) of paragraph one of subsection (b) of this section, in responsible 35 insurance duties relating to the underwriting or adjusting of losses in 36 any one or more of the following branches of insurance: fire, marine, 37 liability and workers' compensation, and fidelity and surety; in the 38 case of a license under subparagraph (A) of paragraph one of subsection 39 (b) of this section in responsible insurance duties relating to the use 40 of life insurance, accident and health insurance and annuity contracts 41 in the design and administration of plans for estate conservation and 42 distribution, employee benefits and business continuation; provided the 43 application for such license is filed within one year from the date of 44 discharge; and [he] the licensee shall submit with his or her applica- 45 tion a statement subscribed and affirmed as true under the penalties of 46 perjury by such employer or employers stating facts [which] that show 47 compliance with this requirement. 48 § 11. Subparagraph (B) of paragraph 1 of subsection (e) of section 49 2104 of the insurance law, as amended by chapter 505 of the laws of 50 2000, is amended to read as follows: 51 (B) An exemption may be granted, at the discretion of the superinten- 52 dent, as to all or any part of the written examination or the prerequi- 53 site course specified in subparagraph (A) of paragraph one of subsection 54 (c) of this section, of any individual seeking to be named a licensee or 55 sub-licensee, upon whom has been conferred, in the case of a license 56 under subparagraph (B) of paragraph one of subsection (b) of thisS. 5805 9 1 section, the Chartered Property Casualty Underwriter (C.P.C.U.) desig- 2 nation by the American Institute for Chartered Property [and Liability] 3 Casualty Underwriters, or any other designation that the superintendent 4 determines is acceptable pursuant to a regulation, or on whom has been 5 conferred, in the case of a license under subparagraph (A) of paragraph 6 one of subsection (b) of this section, the Chartered Life Underwriter 7 (C.L.U.), Chartered Financial Consultant (Ch.F.C.) or the Master of 8 Science in Financial Services (M.S.F.S.) designations by the American 9 College of Financial [Service Professionals] Services, or any other 10 designation that the superintendent determines is acceptable pursuant to 11 a regulation. 12 § 12. Paragraph 2 of subsection (g) of section 2104 of the insurance 13 law is REPEALED and paragraphs 3, 4 and 5 are renumbered paragraphs 2, 3 14 and 4. 15 § 12-a. Paragraph 1 of subsection (f) of section 2104 of the insurance 16 law, as amended by section 3 of part F of chapter 59 of the laws of 17 2005, is amended to read as follows: 18 (1) At the time of application for every such license, and for every 19 biennial renewal thereof, there shall be paid to the superintendent for 20 each individual applicant and for each proposed sub-licensee the sum of 21 [forty] forty-five dollars for each year or fraction of a year in which 22 a license shall be valid. If, however, the applicant or a proposed sub- 23 licensee should withdraw his, her, or its application or the superinten- 24 dent should deny his, her, or its application before the license applied 25 for is issued, then the superintendent may refund the fee paid by the 26 applicant for the license applied for, excepting any examination fees 27 required pursuant to subsection (e) of this section. 28 § 13. Paragraph 1 of subsection (a) of section 2107 of the insurance 29 law is amended to read as follows: 30 (1) The superintendent may issue an insurance consultant's license to 31 any person, firm, association or corporation who or [which] that has 32 complied with the requirements of this chapter with respect to either: 33 life insurance, meaning all of those kinds of insurance authorized in 34 paragraphs one, two [and], three, and thirty-one of subsection (a) of 35 section one thousand one hundred thirteen of this chapter, or any kind 36 of insurance that the superintendent determines to be substantially 37 similar thereto pursuant to paragraph thirty-two of subsection (a) of 38 section one thousand one hundred thirteen of this chapter; or general 39 insurance, meaning all of those kinds of insurance authorized in para- 40 graphs four through [twenty-three] thirty of such subsection, or any 41 kind of insurance that the superintendent determines to be substantially 42 similar thereto pursuant to paragraph thirty-two of subsection (a) of 43 section one thousand one hundred thirteen of this chapter, as specified 44 in such license. 45 § 14. Paragraph 2 of subsection (c) of section 2107 of the insurance 46 law is amended to read as follows: 47 (2) The superintendent may accept, in lieu of any part or all of such 48 examination, the result of any previous written examination given by the 49 superintendent, [The] the American College of Financial Services, the 50 American [College of] Institute for Chartered Property [and Liability] 51 Casualty Underwriters, the Society of Actuaries, the Casualty Actuarial 52 Society, the American Academy of Actuaries or any similar organization 53 [which] that administers professional examinations. 54 § 15. Section 2110 of the insurance law, as amended by chapter 687 of 55 the laws of 2003, the section heading, subsections (a) and (b) as 56 amended by chapter 499 of the laws of 2009, paragraph 15 of subsectionS. 5805 10 1 (a) as added and paragraphs 16 and 17 of subsection (a) as renumbered by 2 chapter 546 of the laws of 2013, is amended to read as follows: 3 § 2110. Revocation or suspension of license or authorization of insur- 4 ance producer, insurance consultant, adjuster, course provider, or life 5 settlement broker. (a) The superintendent may refuse to renew, revoke, 6 or may suspend for a period the superintendent determines the license or 7 authorization of any insurance producer, insurance consultant, adjuster, 8 course provider authorized under section two thousand one hundred 9 forty-one of this chapter, or life settlement broker, if, after notice 10 and hearing, the superintendent determines that the licensee or any 11 sub-licensee or the course provider has: 12 (1) violated any insurance laws, [or violated] any regulation, subpoe- 13 na or order of the superintendent or of another state's insurance 14 commissioner, [or has violated] any standard of the national associ- 15 ation, or any law in the course of his [or], her, or its dealings in 16 such capacity; 17 (2) provided materially incorrect, materially misleading, materially 18 incomplete or materially untrue information in the license application, 19 provider organization application, or course submission application; 20 (3) obtained or attempted to obtain a license or authorization through 21 misrepresentation or fraud; 22 (4)(A) used fraudulent, coercive or dishonest practices; 23 (B) demonstrated incompetence; 24 (C) demonstrated untrustworthiness; or 25 (D) demonstrated financial irresponsibility in the conduct of business 26 in this state or elsewhere; 27 (5) improperly withheld, misappropriated or converted any monies or 28 properties received in the course of business in this state or else- 29 where; 30 (6) intentionally misrepresented the terms of an actual or proposed 31 insurance contract, life settlement contract or application for insur- 32 ance; 33 (7) has been convicted of a felony; 34 (8) admitted or been found to have committed any insurance unfair 35 trade practice or fraud; 36 (9) had an insurance producer license, a life settlement broker 37 license, or its equivalent, denied, suspended or revoked in any other 38 state, province, district, commonwealth, or territory or by the national 39 association; 40 (10) forged [another's] another person's name to an application for 41 insurance or life settlement contract or to any document related to an 42 insurance or life settlement transaction; 43 (11) improperly used notes or any other reference material to complete 44 an examination for an insurance license or life settlement broker 45 license; 46 (12) knowingly accepted insurance business from an individual who is 47 not licensed; 48 (13) failed to comply with an administrative or court order imposing a 49 child support obligation; 50 (14) failed to pay state income tax or comply with any administrative 51 or court order directing payment of state income tax; 52 (15) while acting as a public adjuster, the licensee has failed to act 53 on behalf and in the best interests of the insured when negotiating for 54 or effecting the settlement of an insurance claim for such insured or 55 otherwise acting as a public adjuster, or has failed to make the disclo-S. 5805 11 1 sures required by paragraph two of subsection (s) of section two thou- 2 sand one hundred eight of this article; 3 (16) while acting as a life settlement broker, failed to protect the 4 privacy of the insured or owner or other person for whom the life 5 settlement broker was required to provide protection pursuant to article 6 seventy-eight of this chapter; or 7 (17) ceased to meet the requirements for licensure or authorization 8 under this chapter. 9 (b) Before revoking or suspending the license of any insurance produc- 10 er, life settlement broker or other licensee pursuant to the provisions 11 of this article, the superintendent shall, except when proceeding pursu- 12 ant to subsection (f) of this section, give notice to the licensee, 13 course provider, and to every sub-licensee and shall hold, or cause to 14 be held, a hearing not less than ten days after the giving of such 15 notice. 16 (c) If an insurance producer's license or other licensee's license or 17 course provider's authorization pursuant to the provisions of this arti- 18 cle is revoked or suspended by the superintendent, [he] then the super- 19 intendent shall forthwith give notice to the licensee. 20 (d) The revocation or suspension of any insurance producer's license 21 or other licensee's license or course provider's authorization pursuant 22 to the provisions of this article shall terminate forthwith such produc- 23 er's license or other licensee's license or course provider's authori- 24 zation, and the authority conferred thereby upon all sub-licensees. 25 (e) (1) No individual, corporation, firm or association whose license 26 as an insurance producer or other licensee or course provider subject to 27 subsection (a) of this section has been revoked, and no firm or associ- 28 ation of which such individual is a member, and no corporation of which 29 such individual is an officer or director, shall be entitled to obtain 30 any license or authorization under the provisions of this chapter for a 31 period of [one year] three years after such revocation, or, if such 32 revocation be judicially reviewed, for [one year] three years after the 33 final determination thereof affirming the action of the superintendent 34 in revoking such license or authorization. 35 (2) If any such license or authorization held by a firm, association 36 or corporation be revoked, no member of such firm or association and no 37 officer or director of such corporation shall be entitled to obtain any 38 license or authorization, or to be named as a sub-licensee in any such 39 license, for the same period of time, unless the superintendent deter- 40 mines, after notice and hearing, that such member, officer or director 41 was not personally at fault in the matter on account of which such 42 license or authorization was revoked. 43 (f) (1) As used in this subsection, "non-resident insurance producer's 44 license or sub-license" means a license or sub-license in such capacity 45 issued pursuant to paragraph five of subsection (g) of section two thou- 46 sand one hundred three or subsection (e) of section two thousand one 47 hundred four of this article. 48 (2) A non-resident insurance producer's license or sub-license may be 49 summarily revoked in the event that the licensee's license as an agent, 50 broker, adjuster or in any other capacity under the insurance law of the 51 licensee's home state of domicile or the standards of the national asso- 52 ciation, or such license of the firm or association of which the licen- 53 see is a member, employee or sub-licensee, or such license of the corpo- 54 ration of which the licensee is an officer, director, employee or 55 sub-licensee, has been suspended or revoked, or renewal thereof denied, 56 in the licensee's home state of domicile or by the national associationS. 5805 12 1 by a procedure affording to the licensee or it a statutory right to a 2 hearing, for action or conduct which, if it had been established upon a 3 hearing before the superintendent, would have constituted grounds for 4 revocation of a license under subsection (a) of this section. 5 (3) Before revoking the license of any non-resident insurance producer 6 in accordance with this section, the superintendent shall give ten days' 7 notice in writing to such producer of the action proposed to be taken, 8 which notice shall be given in accordance with the applicable provisions 9 of subsections (a) and (d) of former section three hundred three of this 10 chapter. 11 (4) Upon submission to the superintendent of satisfactory proof that a 12 suspension or revocation of a license issued by a home state or the 13 national association to act as an insurance agent, insurance broker, 14 adjuster or in another licensed capacity under the insurance law of such 15 other state or standards of the national association, or a denial of 16 renewal thereof, has been duly withdrawn, set aside, reversed or voided, 17 the superintendent shall thereupon reinstate and restore any and all 18 licenses revoked in accordance with the provisions of this subsection. 19 (g) If any licensed insurance producer or any person aggrieved shall 20 file with the superintendent a verified complaint setting forth facts 21 tending to show sufficient ground for the revocation or suspension of 22 any insurance producer's license, or if any licensed adjuster or any 23 person aggrieved files with the superintendent a verified complaint 24 setting forth facts showing sufficient grounds for the suspension or 25 revocation of any adjuster's license, the superintendent shall, after 26 notice and a hearing, determine whether such license shall be suspended 27 or revoked. 28 (h) The superintendent shall retain the authority to enforce the 29 provisions of and impose any penalty or remedy authorized by this chap- 30 ter against any person or entity who is under investigation for or 31 charged with a violation of this chapter, even if the person's or enti- 32 ty's license [or], registration, or authorization has been surrendered, 33 or has expired or has lapsed by operation of law. 34 (i) A licensee or course provider subject to this article shall report 35 to the superintendent any administrative action taken against the licen- 36 see or course provider in another jurisdiction or by another govern- 37 mental agency in this state within thirty days of the final disposition 38 of the matter. This report shall include a copy of the order, consent to 39 order or other relevant legal documents. 40 (j) Within thirty days of the initial pretrial hearing date, a licen- 41 see or course provider subject to this article shall report to the 42 superintendent any criminal prosecution of the licensee or course 43 provider taken in any jurisdiction. The report shall include a copy of 44 the initial complaint filed, the order resulting from the hearing and 45 any other relevant legal documents. 46 § 16. Paragraphs 3 and 4 of subsection (b) and paragraph 1 of 47 subsection (c) of section 2132 of the insurance law, paragraphs 3 and 4 48 of subsection (b) as amended by section 13 of part V of chapter 57 of 49 the laws of 2014, and paragraph 1 of subsection (c) as added by chapter 50 656 of the laws of 1992, are amended and a new paragraph 5 is added to 51 subsection (b) to read as follows: 52 (3) for purposes of the continuing education requirements for life 53 settlements, an insurance producer with a life line of authority who is 54 acting as a life settlement broker pursuant to section two thousand one 55 hundred thirty-seven of this article; [or]S. 5805 13 1 (4) for purposes of a title insurance agent license, an attorney 2 licensed to practice law in this state, provided that such attorney is 3 in good standing with the New York state office of court adminis- 4 tration[.]; or 5 (5) an insurance producer who is a member of the national association, 6 provided the insurance producer complies with the continuing education 7 requirements of the insurance producer's home state and of the national 8 association. 9 (1) Any person holding a license issued pursuant to this article and 10 not exempt under subsection (b) of this section shall, during each full 11 biennial licensing period, satisfactorily complete courses or programs 12 of instruction or attend seminars as may be approved by the superinten- 13 dent equivalent to [fifteen] twenty-four credit hours of instruction, of 14 which three credit hours shall be in an approved ethics course. 15 § 17. Subsection (i) of section 2132 of the insurance law is REPEALED 16 and subsection (j) is relettered subsection (i). 17 § 18. Paragraph 2 of subsection (d) of section 2137 of the insurance 18 law, as added by chapter 499 of the laws of 2009, is amended to read as 19 follows: 20 (2) [The superintendent may require any individual named in the appli-21cation for such license to submit a set of fingerprints, unless such22applicant is licensed as an insurance producer with a life line of23authority. Such fingerprints shall be submitted to the division of crim-24inal justice services for a state criminal history record check, as25defined in subdivision one of section three thousand thirty-five of the26education law, and may be submitted to the federal bureau of investi-27gation for a national criminal history record check. All such criminal28history records sent to the superintendent pursuant to this paragraph29shall be confidential pursuant to the applicable federal and state laws,30rules and regulations, and shall not be published or in any way31disclosed to persons other than the superintendent, unless otherwise32authorized by law. The superintendent shall provide such applicant with33a copy of his or her criminal history record, if any, together with a34copy of article twenty-three-A of the correction law, and inform such35applicant of his or her right to seek correction of any incorrect infor-36mation contained in such record pursuant to regulations and procedures37established by the division of criminal justice services. All determi-38nations to grant or deny clearance for licensure pursuant to this39section shall be in accordance with subdivision sixteen of section two40hundred ninety-six of the executive law and article twenty-three-A of41the correction law.] When the superintendent denies an application, 42 written notice of such determination shall be given to the prospective 43 applicant who shall be afforded notice and the right to be heard and 44 offer proof in opposition to such determination. 45 § 19. Subparagraph (D) of paragraph 1 of subsection (f) of section 46 2137 of the insurance law, as added by chapter 499 of the laws of 2009, 47 is amended to read as follows: 48 (D) in the discretion of the superintendent, as to all or any part of 49 the written examination or the prerequisite course specified in 50 subsection (e) of this section, of any individual seeking to be named a 51 licensee or sub-licensee, upon whom has been conferred the Chartered 52 Life Underwriter (C.L.U.) [or Chartered Life Underwriter Associate53designation], Chartered Financial Consultant (Ch.F.C.), or the Master of 54 Science in Financial Services (M.S.F.S.) designations by [The] the Amer- 55 ican College of Financial Services, or any other designation that the 56 superintendent determines is acceptable pursuant to a regulation; orS. 5805 14 1 § 20. The insurance law is amended by adding a new section 2140 to 2 read as follows: 3 § 2140. Fingerprint requirement. (a)(1) Except as provided in 4 subsection (b) of this section, the superintendent may require any indi- 5 vidual named in an application for a license under this article or under 6 article sixty-five or sixty-eight of this chapter, to submit a set of 7 fingerprints. Such fingerprints shall be submitted to the division of 8 criminal justice services for a state criminal history record check, and 9 may be submitted to the federal bureau of investigation for a national 10 criminal history record check. All such criminal history records made 11 available to the superintendent pursuant to this section shall be confi- 12 dential pursuant to the applicable federal and state laws, rules and 13 regulations, and shall not be published or in any way disclosed to 14 persons other than the superintendent, unless otherwise authorized by 15 law. 16 (2) The superintendent shall inform such applicant that he or she may 17 obtain a copy of his or her criminal history record maintained by the 18 division of criminal justice services, if any, and may challenge the 19 completeness or accuracy of the information contained in such record, 20 pursuant to regulations and procedures established by the division of 21 criminal justice services. 22 (3) All determinations to grant or deny clearance for licensure pursu- 23 ant to this section shall be in accordance with subdivision sixteen of 24 section two hundred ninety-six of the executive law and article twenty- 25 three-A of the correction law. When the superintendent denies an appli- 26 cation, written notice of such determination shall be given to the 27 prospective applicant who shall be afforded notice and the right to be 28 heard and offer proof in opposition to such determination. 29 (b) The superintendent shall waive the fingerprinting requirement for 30 a nonresident producer license applicant as provided in section two 31 thousand one hundred thirty-six of this article. 32 § 21. The insurance law is amended by adding a new section 2141 to 33 read as follows: 34 § 2141. Course providers. (a) Any entity eligible to provide courses, 35 programs of instruction, or seminars in accordance with this article 36 shall file for authorization by the superintendent on a biennial basis, 37 to conform with its area of instruction, a provider organization appli- 38 cation and a course submission application for each course, program and 39 seminar. 40 (b) The provider organization application shall include the names of 41 all instructors to be used during the contract period, and instructors 42 may be added during the period by notifying the superintendent and 43 paying the appropriate filing fees. 44 (c) The completed application shall be returned in a timely manner, as 45 specified by the superintendent, with a non-refundable filing fee of two 46 hundred dollars per organization, fifty dollars per course, program and 47 seminar, and fifty dollars per instructor. 48 § 22. The insurance law is amended by adding a new section 2142 to 49 read as follows: 50 § 2142. National association of registered agents and brokers. (a)(1) 51 A nonresident insurance producer that is a member of the national asso- 52 ciation and that pays the licensing fee set by this state for any line 53 of authority and type of insurance producer license specified in the 54 home state license of the insurance producer shall be deemed to be an 55 insurance producer for the purpose of this chapter. If the home state ofS. 5805 15 1 the insurance producer does not specify separate licenses for an insur- 2 ance agent and insurance broker, then: 3 (A) if the insurance producer is appointed by an insurer as its agent, 4 then the insurance producer shall pay the licensing fee for insurance 5 agent and shall be subject to all of the requirements of this chapter 6 applicable to insurance agents when acting in such capacity; and 7 (B) if the insurance producer is not acting as agent for the insurer, 8 then the insurance producer shall pay the licensing fee for insurance 9 broker and shall be subject to all of the requirements of this chapter 10 applicable to insurance brokers when acting in such capacity. 11 (2) A nonresident insurance consultant that is a member of the 12 national association and that pays the licensing fee set by this state 13 for any line of authority specified in the home state license of the 14 insurance consultant shall be deemed to be an insurance consultant for 15 the purpose of this chapter. 16 (b) Membership in the national association shall: 17 (1)(A) authorize a nonresident insurance producer to sell, solicit, or 18 negotiate insurance in this state for which the insurance producer pays 19 the licensing fee set by this state for any line of authority and type 20 of insurance producer license specified in the home state license of the 21 insurance producer, and exercise all such incidental powers as shall be 22 necessary to carry out such activities, including claims adjustment and 23 settlement to the extent permissible under this article, risk manage- 24 ment, employee benefits advice, retirement planning, and any other insu- 25 rance-related consulting activities; 26 (B) authorize an insurance consultant to examine, appraise, review, or 27 evaluate any insurance policy, annuity or pension contract, plan or 28 program, or make recommendations or give advice with regard to any of 29 the foregoing for any line of authority specified in the home state 30 license of the insurance consultant; 31 (2) be the equivalent of a: 32 (A) nonresident insurance producer license for purpose of authorizing 33 the insurance producer to engage in the activities described in subpara- 34 graph (A) of paragraph one of this subsection in this state if the 35 insurance producer pays the licensing fee set by this state; and 36 (B) nonresident insurance consultant license for purpose of authoriz- 37 ing the insurance consultant to engage in the activities described in 38 subparagraph (B) of paragraph one of this subsection in this state if 39 the insurance producer pays the licensing fee set by this state; and 40 (3) be the equivalent of a nonresident insurance producer license for 41 the purpose of subjecting an insurance producer to this chapter and 42 regulations promulgated thereunder and be the equivalent of a nonresi- 43 dent insurance consultant license for the purpose of subjecting an 44 insurance consultant to this chapter and regulations promulgated there- 45 under, concerning refusal to renew, revocation, suspension, or any other 46 enforcement action related to the ability of an insurance producer or 47 insurance consultant to engage in any activity within the scope of 48 authority granted under this subsection and to all state laws, regu- 49 lations, provisions, and actions preserved under 15 U.S.C. § 6753(e)(5). 50 (c) A nonresident insurance producer that is a member of the national 51 association and that pays the licensing fee set by this state for any 52 line of authority and type of insurance producer license specified in 53 the home state license of the insurance producer, or a nonresident 54 insurance consultant that is a member of the national association and 55 that pays the licensing fee set by this state for any line of authority 56 specified in the home state license of the insurance consultant, shallS. 5805 16 1 be subject to all applicable laws of this state, except that such an 2 insurance producer or insurance consultant shall be exempt from any law, 3 regulation, provision, or other action that is inconsistent with the 4 provisions of 15 U.S.C. § 6751 et. seq. related to market entry for 5 nonresident insurance producers or nonresident insurance consultants, 6 and then only to the extent of the inconsistency. 7 § 23. Section 6505 of the insurance law is REPEALED. 8 § 24. Subsection (d) of section 7803 of the insurance law, as added by 9 chapter 499 of the laws of 2009, is amended to read as follows: 10 (d) The superintendent may require an applicant for such license to 11 submit a set of fingerprints. Such fingerprints shall be submitted to 12 the division of criminal justice services for a state criminal history 13 record check[, as defined in subdivision one of section three thousand14thirty-five of the education law], and may be submitted to the federal 15 bureau of investigation for a national criminal history record check. 16 All such criminal history records [sent] made available to the super- 17 intendent pursuant to this paragraph shall be confidential pursuant to 18 the applicable federal and state laws, rules and regulations, and shall 19 not be published or in any way disclosed to persons other than the 20 superintendent, unless otherwise authorized by law. The superintendent 21 shall [provide] inform such applicant [with] that he or she may obtain a 22 copy of his or her criminal history record maintained by the division of 23 criminal justice services, if any, [together with a copy of article24twenty-three-A of the correction law,] and [inform such applicant of his25or her right to seek correction of any incorrect] may challenge the 26 completeness or accuracy of the information contained in such record 27 pursuant to regulations and procedures established by the division of 28 criminal justice services. All determinations to grant or deny clear- 29 ance for licensure pursuant to this section shall be in accordance with 30 subdivision sixteen of section two hundred ninety-six of the executive 31 law and article twenty-three-A of the correction law. When the super- 32 intendent denies an application, written notice of such determination 33 shall be given to the prospective applicant who shall be afforded notice 34 and the right to be heard and offer proof in opposition to such determi- 35 nation. 36 § 25. Subsection (f) of section 7804 of the insurance law, as added by 37 chapter 499 of the laws of 2009, is amended to read as follows: 38 (f) The superintendent may require an applicant for such registration 39 to submit a set of fingerprints. Such fingerprints shall be submitted to 40 the division of criminal justice services for a state criminal history 41 record check[, as defined in subdivision one of section three thousand42thirty-five of the education law], and may be submitted to the federal 43 bureau of investigation for a national criminal history record check. 44 All such criminal history records [sent] made available to the super- 45 intendent pursuant to this paragraph shall be confidential pursuant to 46 the applicable federal and state laws, rules and regulations, and shall 47 not be published or in any way disclosed to persons other than the 48 superintendent, unless otherwise authorized by law. The superintendent 49 shall [provide] inform such applicant [with] that he or she may obtain a 50 copy of his or her criminal history record maintained by the division of 51 criminal justice services, if any, [together with a copy of article52twenty-three-A of the correction law,] and [inform such applicant of his53or her right to seek correction of any incorrect] may challenge the 54 completeness or accuracy of the information contained in such record 55 pursuant to regulations and procedures established by the division of 56 criminal justice services. All determinations to grant or deny clear-S. 5805 17 1 ance for registration pursuant to this section shall be in accordance 2 with subdivision sixteen of section two hundred ninety-six of the execu- 3 tive law and article twenty-three-A of the correction law. When the 4 superintendent denies an application, written notice of such determi- 5 nation shall be given to the prospective applicant who shall be afforded 6 notice and the right to be heard and offer proof in opposition to such 7 determination. 8 § 26. Paragraph 1 of subsection (d) of section 2118 of the insurance 9 law, as amended by section 13 of part I of chapter 61 of the laws of 10 2011, is amended to read as follows: 11 (1) Where this state is the insured's home state, a person, firm, 12 association or corporation licensed pursuant to the provisions of 13 section two thousand one hundred five of this article shall pay to the 14 superintendent a sum equal to three and six-tenths percent of the gross 15 premiums charged the insureds by the insurers for insurance procured by 16 such licensee pursuant to such license, less the amount of such premiums 17 returned to such insureds. Where the insurance covers property or risks 18 located or resident both in and outside of the United States and the 19 insured's home state is this state, the sum payable shall be computed on 20 that portion of the gross premiums allocated to the risks located or 21 resident in the United States pursuant to subsection (b) of section nine 22 thousand one hundred two of this chapter less the amount of gross premi- 23 ums allocated to the risks located or resident in the United States and 24 returned to the insured. 25 § 27. Section 9102 of the insurance law, as amended by section 14 of 26 part I of chapter 61 of the laws of 2011, is amended to read as follows: 27 § 9102. Allocation of premiums. [In] (a) Except as provided in 28 subsection (b) of this section, in determining the amount of direct 29 premiums taxable in this state, all such premiums written, procured, or 30 received in this state shall be deemed written on property or risks 31 located or resident in this state, except such premiums properly allo- 32 cated and reported as taxable premiums of any other state or states. 33 (b)(1) In determining the amount of gross premiums taxable in this 34 state pursuant to paragraph one of subsection (d) of section two thou- 35 sand one hundred eighteen of this chapter, where a placement of excess 36 line insurance covers property or risks located or resident both in the 37 United States and outside the United States and the insured's home state 38 is this state, the sum paid to the superintendent shall be computed on 39 that portion of the policy premium that is attributable to property or 40 risks located or resident in the United States, as determined by refer- 41 ence to an allocation schedule prescribed by the superintendent in a 42 regulation. 43 (2) If the allocation schedule does not identify a classification 44 appropriate to the property or risk being insured, an alternative method 45 of equitable allocation shall be used for such coverage. In that circum- 46 stance, documented evidence of the underwriting bases and other criteria 47 used by the insurer shall be given significant weight by the superinten- 48 dent. 49 (3) The licensee shall report the method of allocation utilized in a 50 form and in a manner prescribed by the superintendent in a regulation. 51 Where the licensee bases the allocation on an alternative method of 52 equitable allocation, the licensee shall provide additional information 53 in support of the allocation as the superintendent may require. 54 (4) If the superintendent reasonably determines that the information 55 provided is insufficient to substantiate the method of allocation or 56 that the method used is incorrect, the superintendent shall determineS. 5805 18 1 the sum to be paid in accordance with the method prescribed by the 2 superintendent in the regulation. The superintendent's determination of 3 the sum to be paid shall finally and irrevocably fix the tax unless, 4 within thirty days of notification of the superintendent's determi- 5 nation, the licensee requests a hearing to dispute the determination. 6 § 28. Section 1552 of the tax law, as amended by section 18 of part I 7 of chapter 61 of the laws of 2011, is amended to read as follows: 8 § 1552. Allocation. [Where] (a) Except as provided in subdivision (b) 9 of this section, where the taxable insurance contract covers risks 10 located or resident both within and without this state and the taxpay- 11 er's home state is New York, one hundred percent of premiums shall be 12 allocable to this state. 13 (b) Where the insurance covers property or risks located or resident 14 both in and outside of the United States and the taxpayer's home state 15 is New York, the sum payable shall be computed on that portion of the 16 gross premiums allocated to the risks located or resident in the United 17 States less the amount of gross premiums allocated to the risks located 18 or resident in the United States and returned to the insured. The 19 amount of premiums allocable to risks resident or located within the 20 United States shall be determined in a manner consistent with the rules 21 and regulations promulgated by the superintendent of financial services 22 pursuant to subsection (b) of section nine thousand one hundred two of 23 the insurance law. 24 § 29. This act shall take effect immediately, provided, however, that: 25 (1) the provisions of sections eighteen, twenty, twenty-four and twen- 26 ty-five of this act shall take effect on the one hundred eightieth day 27 after it shall have become a law; 28 (2) the license of each person, firm, association or corporation that 29 is licensed as a mortgage guaranty insurance agent as of the effective 30 date of this act shall expire one year after the enactment of this act 31 and each such person, firm, association or corporation that wishes to 32 remain licensed shall submit a renewal application in accordance with 33 section 2103 of the insurance law; 34 (3) the provisions of sections twenty-six, twenty-seven and twenty- 35 eight of this act shall apply to insurance contracts that have an effec- 36 tive date on or after July 21, 2011; and 37 (4) effective immediately, the superintendent of financial services 38 may repeal, amend, or promulgate any rules and regulations necessary for 39 the implementation of the provisions of this act on its effective date. 40 § 2. Severability clause. If any clause, sentence, subparagraph, para- 41 graph, subsection, section, or part of this act shall be adjudged by any 42 court of competent jurisdiction to be invalid, such judgment shall not 43 affect, impair, or invalidate the remainder thereof, but shall be 44 confined in its operation to the clause, sentence, subparagraph, para- 45 graph, subsection, section, or part thereof directly involved in the 46 controversy in which such judgment shall have been rendered. It is here- 47 by declared to be the intent of the legislature that this act would have 48 been enacted even if such invalid provisions had not been included ther- 49 ein. 50 § 3. This act shall take effect immediately, provided, however, that 51 the applicable effective date of Parts A through B of this act shall be 52 as specifically set forth in the last section of such Parts.
