NY State Senate Bill 2015-S2360

Senate Bill S2360

2015-2016 Legislative Session

Removes requirement for advertisements referring to an insurer to include the insurer's full name and principal office

download bill text pdf

Archive: Last Bill Status - In Senate Committee Insurance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2016	referred to insurance
Jan 22, 2015	referred to insurance

2015-S2360 (ACTIVE) - Details

Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §§2122, 1101 & 2117, Ins L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S6809
2013-2014: S3064
2017-2018: S2093
2019-2020: S3523
2021-2022: S3554

2015-S2360 (ACTIVE) - Summary

Removes requirement for advertisements referring to an insurer to include the insurer's full name and principal office and makes technical corrections relating thereto.

2015-S2360 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S2360

TITLE OF BILL:  An act to amend the insurance law, in relation to
removing the requirement for advertisements referring to an insurer to
include the insurer's full name and principal office and making
technical corrections related thereto

PURPOSE:

The bill would amend the insurance law by deleting the requirement for
advertisements referring to an insurer to include the insurer's full
name and principal office

SUMMARY OF PROVISIONS:

Section 1 of the bill deletes the requirement in Section 2122(h) of
the Insurance Law for agents and brokers to display the insurer's full
name and the name of the city, town or village of its principal office
in advertisements that refer to an insurer.

Section 2 is the effective date.

JUSTIFICATION:

The bill modernizes the Insurance Law by removing outdated,
burdensome, and unnecessary requirements related to advertisements by

insurance producers.

Section 1 removes an outdated provision of the Insurance Law requiring
that when producers use advertisements that refer to an insurer, the
advertisement must display the insurer's full name and the name of the
city, town or village of the insurer's principal office. This outdated
law serves no public policy purpose in today's modern society and is
unnecessarily burdensome upon producers who must clutter phone book
advertisements and internet web pages with meaningless text. The law
may have been helpful to consumers in the days before widespread
advertising on television and the internet Today, the vast majority of
consumers can identify insurers from company logos and other common
names or abbreviations that may not necessarily encompass the
insurer's full name. There is also no particular reason for
advertisements to display the location of an insurer's principal
office. Consumers are more concerned with the location of the company
representative who will provide them with service.

LEGISLATIVE HISTORY:

S.3064 of 2013-14;
S.6809 of 2011-12;
S.7380 of 2009-2010

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

Immediately.

2015-S2360 (ACTIVE) - Bill Text download pdf

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

                                  2360

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            January 22, 2015
                               ___________

Introduced  by  Sen.  SEWARD -- 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 removing the  require-
  ment  for advertisements referring to an insurer to include the insur-
  er's full name and principal office and making  technical  corrections
  related thereto

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

  Section 1. Section 2122 of the insurance law, the section heading  and
subsection  (a)  as amended by section 11 of part V of chapter 57 of the
laws of 2014, is amended to read as follows:
  S 2122. Advertising by insurance producers.  (a)  [(1)]  No  insurance
producer  shall  make  or  issue  in this state any advertisement, sign,
pamphlet, circular, card or other public announcement purporting to make
known the financial condition of any  insurer,  unless  the  same  shall
conform  to the requirements of section one thousand three hundred thir-
teen of this chapter.
  [(2)] (B) No insurance producer or other person, shall, by any  adver-
tisement  or  public  announcement  in this state, call attention to any
unauthorized insurer or insurers.
  [(b) Every agent of any insurer and every insurance broker  shall,  in
all  advertisements,  public  announcements, signs, pamphlets, circulars
and cards, which refer to an insurer, set forth therein the name in full
of the insurer referred to and the name of the city, town or village  in
which it has its principal office in the United States.]
  S  2.  Paragraph  5 of subsection (b) of section 1101 of the insurance
law, as added by chapter 597 of the laws of 1999, is amended to read  as
follows:
  (5)  Notwithstanding the foregoing, an unauthorized insurer, which (A)
is affiliated with an insurer licensed in this state, and (B) has satis-
fied all applicable requirements for placements by excess  line  brokers

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06915-01-5

S. 2360                             2

as  set forth in section two thousand one hundred eighteen of this chap-
ter, may provide from an office within the state,  services  to  support
its  insurance  business.  Such  services shall not be deemed under this
chapter  as  doing an insurance business in this state. For the purposes
of this section these services include, but are not limited to, computer
operations, clerical and  staffing  support,  underwriting,  negotiating
contract terms, quoting premiums, binding coverage, drafting and issuing
policies  and  claims  handling,  investigation and payment, among other
incidental services. Such services  shall  not  include  the  marketing,
soliciting  or advertising by the unauthorized insurer directly to poli-
cyholders. Notwithstanding [paragraph two of] subsection  [(a)]  (B)  of
section  two thousand one hundred twenty-two of this chapter, such unau-
thorized insurers shall be permitted to advertise  to,  and  market  and
solicit  through,  excess  line brokers licensed pursuant to section two
thousand one hundred five of this chapter. All  obligations  of  such  a
licensee  under  article twenty-one of this chapter shall remain in full
force and effect. Any document issued by the unauthorized  insurer  that
indicates  any location within this state in which it conducts its oper-
ations shall include a prominent notice that the insurer is not licensed
by the state of New York, in no smaller than 10 point type,  in  accord-
ance with regulations as may be promulgated by the superintendent.
  S  3. Subsection (i) of section 2117 of the insurance law, as added by
chapter 597 of the laws of 1999, is amended to read as follows:
  (i) Notwithstanding subsection (a) of this section, a licensed insurer
may provide, from its office in  the  state,  services  to  support  the
insurance  business  of  an unauthorized insurer with which it is affil-
iated, provided that the unauthorized insurer has satisfied all applica-
ble requirements for placements by excess line brokers as set  forth  in
section two thousand one hundred eighteen of this article. Such services
may  include, but shall not be limited to, computer operations, clerical
and staffing support, underwriting, negotiating contract terms,  quoting
premiums,  binding  coverage,  drafting  and issuing policies and claims
handling, investigation and payment, among  other  incidental  services.
Services  expressly prohibited under this section include the marketing,
soliciting or advertising by the unauthorized insurer directly to  poli-
cyholders.  Notwithstanding  [paragraph  two of] subsection [(a)] (B) of
section two thousand one hundred twenty-two of this article, such  unau-
thorized  insurers  shall  be  permitted to advertise to, and market and
solicit through, excess line brokers licensed pursuant  to  section  two
thousand  one  hundred  five  of this article, from an office within the
state. All obligations of such licensee under this article shall  remain
in full force and effect. Any document issued by an unauthorized insurer
that  indicates  any location within this state in which it conducts its
operations shall include a prominent notice  that  the  insurer  is  not
licensed  by the state of New York, in no smaller than 10 point type, in
accordance with regulations as may be promulgated by the superintendent.
  S 4. This act shall take effect immediately.

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