S T A T E   O F   N E W   Y O R K
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                                  7849

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                              May 19, 2011
                               ___________

Introduced  by M. of A. MORELLE -- read once and referred to the Commit-
  tee on Insurance

AN ACT to amend the insurance law, in relation to  permitting  unauthor-
  ized  foreign or alien insurers to contact nonresident persons, firms,
  associations or corporations to make insurance contracts

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subsection  (b)  of  section 1101 of the insurance law is
amended by adding a new paragraph 8 to read as follows:
  (8) NOTWITHSTANDING THE FOREGOING, A PERSON, AS DEFINED IN SECTION ONE
THOUSAND FIVE HUNDRED ONE OF THIS CHAPTER, ON BEHALF OF AN  UNAUTHORIZED
FOREIGN  OR  ALIEN  INSURER  DULY  LICENSED  TO TRANSACT THE BUSINESS OF
INSURANCE BY THE LAWS OF ITS  DOMICILE  MAY,  FROM  WITHIN  THIS  STATE,
CONTACT  ANY  PERSON, FIRM, ASSOCIATION OR CORPORATION NOT A RESIDENT OF
THIS STATE FOR THE PURPOSE OF PROPOSING TO MAKE ANY  INSURANCE  CONTRACT
OR  TO SOLICIT APPLICATIONS OR PERFORM SERVICES FOR ANY SUCH POLICIES OR
CONTRACTS WITH RESPECT TO PERSONS OR RISKS NOT RESIDENT  OR  LOCATED  IN
THIS  OR ANY OTHER STATE, PROVIDED THAT SUCH PERSON IS IN THE SAME HOLD-
ING COMPANY SYSTEM WITH A DOMESTIC INSURER AND THE AFOREMENTIONED  UNAU-
THORIZED  FOREIGN  OR ALIEN INSURER. SUCH ACTIVITIES SHALL NOT BE DEEMED
UNDER THIS CHAPTER AS DOING AN INSURANCE BUSINESS IN THIS STATE AND SUCH
PERSON MAY MAINTAIN AN OFFICE IN THIS STATE  UNDER  ITS  OWN  NAME,  AND
EMPLOY PERSONS WITHIN THIS STATE, IN FURTHERANCE OF SUCH ACTIVITIES. FOR
THE  PURPOSES  OF  THIS SECTION, PERMITTED SERVICES INCLUDE, BUT ARE NOT
LIMITED TO, UNDERWRITING, NEGOTIATING CONTRACT TERMS, QUOTING  PREMIUMS,
COLLECTING OF PREMIUMS, AND CLAIMS HANDLING.
  S  2.  Section  2117  of  the insurance law is amended by adding a new
subsection (k) to read as follows:
  (K) NOTWITHSTANDING ANYTHING IN THIS CHAPTER, A PERSON, AS DEFINED  IN
SECTION  ONE  THOUSAND FIVE HUNDRED ONE OF THIS CHAPTER, ON BEHALF OF AN
UNAUTHORIZED FOREIGN OR ALIEN INSURER  DULY  LICENSED  TO  TRANSACT  THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11549-01-1
              

A. 7849                             2

BUSINESS  OF INSURANCE BY THE LAWS OF ITS DOMICILE MAY, FROM WITHIN THIS
STATE, CONTACT ANY PERSON, FIRM, ASSOCIATION OR CORPORATION NOT A  RESI-
DENT  OF  THIS  STATE FOR THE PURPOSE OF PROPOSING TO MAKE ANY INSURANCE
CONTRACT  OR  TO  SOLICIT  APPLICATIONS OR PERFORM SERVICES FOR ANY SUCH
POLICIES OR CONTRACTS WITH RESPECT TO PERSONS OR RISKS NOT  RESIDENT  OR
LOCATED  IN THIS OR ANY OTHER STATE, PROVIDED THAT SUCH PERSON IS IN THE
SAME HOLDING COMPANY SYSTEM WITH A DOMESTIC INSURER  AND  THE  AFOREMEN-
TIONED  UNAUTHORIZED FOREIGN OR ALIEN INSURER. SUCH ACTIVITIES SHALL NOT
BE DEEMED UNDER THIS CHAPTER AS DOING  AN  INSURANCE  BUSINESS  IN  THIS
STATE AND SUCH PERSON MAY MAINTAIN AN OFFICE IN THIS STATE UNDER ITS OWN
NAME,  AND  EMPLOY  PERSONS  WITHIN  THIS  STATE, IN FURTHERANCE OF SUCH
ACTIVITIES.  FOR  THE  PURPOSES  OF  THIS  SECTION,  PERMITTED  SERVICES
INCLUDE,  BUT  ARE  NOT  LIMITED  TO, UNDERWRITING, NEGOTIATING CONTRACT
TERMS, QUOTING PREMIUMS, COLLECTING OF PREMIUMS, AND CLAIMS HANDLING.
  S 3. This act shall take effect immediately.