Bill S3665A-2011

Permits unauthorized foreign or alien insurers to contact nonresident persons, firms, associations or corporations to make insurance contracts

Permits unauthorized foreign or alien insurers to contact nonresident persons, firms, associations or corporations to make insurance contracts.

Details

Actions

  • Jun 12, 2012: referred to insurance
  • Jun 12, 2012: DELIVERED TO ASSEMBLY
  • Jun 12, 2012: PASSED SENATE
  • Jun 6, 2012: ADVANCED TO THIRD READING
  • Jun 5, 2012: 2ND REPORT CAL.
  • Jun 4, 2012: 1ST REPORT CAL.991
  • Jan 4, 2012: REFERRED TO INSURANCE
  • Jan 4, 2012: returned to senate
  • Jan 4, 2012: died in assembly
  • Jun 13, 2011: referred to insurance
  • Jun 13, 2011: DELIVERED TO ASSEMBLY
  • Jun 13, 2011: PASSED SENATE
  • Jun 7, 2011: AMENDED ON THIRD READING 3665A
  • May 11, 2011: ADVANCED TO THIRD READING
  • May 10, 2011: 2ND REPORT CAL.
  • May 9, 2011: 1ST REPORT CAL.552
  • Mar 1, 2011: REFERRED TO INSURANCE

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Insurance - Jun 4, 2012
Ayes (17): Seward, Flanagan, Golden, Grisanti, Lanza, Larkin, LaValle, Martins, Saland, Young, Breslin, Diaz, Espaillat, Kennedy, Parker, Peralta, Stavisky
Excused (1): Smith

Memo

BILL NUMBER:S3665A

TITLE OF BILL: An act to amend the insurance law, in relation to permitting unauthorized foreign or alien insurers to contact nonresident persons, firms, associations or corporations to make insurance contracts

PURPOSE OR GENERAL IDEA OF BILL: This bill would permit a person as defined under section one thousand five hundred and one of the insurance law to act on behalf an unauthorized insurer in relation to non-New York residents as long as that person and the unauthorized insurer are part of the same holding company system as a domestic insurer.

SUMMARY OF SPECIFIC PROVISIONS: Section one amends Insurance Law section 1101 by adding a new paragraph 8 that would allow a person in the same holding company system as a domestic insurer and unauthorized insurer to act in this state on behalf of the unauthorized insurer with respect to persons not resident in the state.

Section two amends Insurance Law section 2117 by adding a new subsection (k) by adding similar language stated above.

Section three provides that the bill shall take effect immediately.

JUSTIFICATION: Under current law, an entity cannot act on behalf of an unauthorized insurer from offices in the State even if the actions including the solicitation, negotiation or underwriting of risks do not involve New York residents. Thus, business that could otherwise be transacted in New York must take place outside of the state. By forcing these companies beyond the State's borders, the existing law drives jobs and the benefits related thereto out of the State.

This legislation would allow these entities which are part of the holding company system of a domestic insurer and the unauthorized insurer, along with the employees that support them, to come into the State and set up office facilities within its borders. It would allow such entities to operate from an office in the State so that it may provide those services necessary to support an unauthorized insurer's overseas operations. Such services would include underwriting, negotiating contract terms and quoting premiums with respect to non-New York residents. This legislation would allow these entities to undertake those support functions necessary to operate their business, from within the State, without affecting New York policyholders. The protections afforded New York policyholders will be unimpaired by the proposed legislation.

Importantly, this will allow jobs to be established in New York related to the conduct of business in New York that has no nexus to citizens of the State and will not affect the regulation of insurance as it relates to New York residents.

PRIOR LEGISLATIVE HISTORY:

2010 (S.7674)

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.

EFFECTIVE DATE: Immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 3665--A Cal. No. 552 2011-2012 Regular Sessions IN SENATE March 1, 2011 ___________
Introduced by Sen. BRESLIN -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance -- reported favorably from said committee, ordered to first and second report, ordered to a third reading, amended and ordered reprinted, retaining its place in the order of third reading 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 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.

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