NY State Senate Bill 2015-S5647

Senate Bill S5647

Signed By Governor

2015-2016 Legislative Session

Relates to permitting insurance brokers to engage in certain activities in New York with respect to multi-national entities

download bill text pdf

Archive: Last Bill Status Via A7789 - Signed by Governor

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

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jul 02, 2015	signed chap.64 delivered to governor
Jun 17, 2015	returned to assembly passed senate substituted for s5647
Jun 17, 2015	substituted by a7789
Jun 03, 2015	advanced to third reading
Jun 02, 2015	2nd report cal.
Jun 01, 2015	1st report cal.1116
May 21, 2015	referred to insurance

Votes

- Jun 17, 2015 - Floor Vote
  A7789
  
  63
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 17, 2015
      
      aye (63)
      
      Addabbo Jr.
      
      Amedore
      
      Avella
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Carlucci
      
      Comrie
      
      Croci
      
      DeFrancisco
      
      Diaz
      
      Dilan
      
      Espaillat
      
      Farley
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Hamilton
      
      Hannon
      
      Hassell-Thompson
      
      Hoylman-Sigal
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Latimer
      
      Libous
      
      Little
      
      Marcellino
      
      Marchione
      
      Martins
      
      Montgomery
      
      Murphy
      
      Nozzolio
      
      O'Mara
      
      Ortt
      
      Panepinto
      
      Parker
      
      Peralta
      
      Perkins
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Sampson
      
      Sanders Jr.
      
      Savino
      
      Serino
      
      Serrano
      
      Seward
      
      Skelos
      
      Squadron
      
      Stavisky
      
      Stewart-Cousins
      
      Valesky
      
      Venditto
      
      Young
  Jun 1, 2015 - Insurance Committee Vote
  S5647
  
  17
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Insurance Committee Vote: Jun 1, 2015
      
      aye (17)
      
      Avella
      
      Breslin
      
      Carlucci
      
      Espaillat
      
      Golden
      
      Kennedy
      
      LaValle
      
      Lanza
      
      Larkin
      
      Latimer
      
      Martins
      
      O'Mara
      
      Parker
      
      Sanders Jr.
      
      Seward
      
      Venditto
      
      Young
      
      aye wr (1)
      
      Panepinto

co-Sponsors

2015-S5647 (ACTIVE) - Details

See Assembly Version of this Bill:: A7789
Law Section:: Insurance Law
Laws Affected:: Amd §§2117 & 1101, Ins L

2015-S5647 (ACTIVE) - Summary

Relates to permitting insurance brokers to engage in certain activities in New York; permits brokers to act as agent for an insurer or health maintenance organization which is not licensed or authorized in this state with regard to certain activities involving multi-national entities.

2015-S5647 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S5647

TITLE OF BILL:  An act to amend the insurance law, in relation to
permitting brokers to engage in certain activities in New York

PURPOSE: The purpose of the bill is to permit a licensed insurance
broker to engage in certain activities with respect to the issuance of
certain group policies or contracts by an alien insurer to certain
multinational corporations.

SUMMARY OF PROVISIONS: Section 1 of the bill would add a new Insurance
Law Section 2117(k) to permit a licensed insurance broker, under
certain specified conditions, to: (1) provide information to a
multinational entity resident outside the United States with respect
to a group life, annuity, or accident and health insurance policy or
contract issued or delivered, or that will be issued or delivered, by
an alien insurer; (2) meet and discuss insurance needs with the
multinational entity; (3) refer the multinational entity to the alien
insurer and provide information to the multinational entity about the
alien insurer; (4) respond to requests for information by
representatives of the multinational entity concerning quotes and any
other specific terms and conditions of such a policy or contract being
negotiated in the jurisdiction where the policy or contract will be
issued or delivered by the alien insurer; (5) provide information
concerning renewals of existing such policies or contracts issued by
the alien insurer; and (6) manage the employee benefits program of the

multinational entity

A multinational entity means an institution (as defined in Insurance
Law Section 107(a)(24)) that is a member of a multinational group of
institutions operating globally where: (i) at least one institution in
the group is formed under the laws of the United States or has
significant operations in the United States; and (ii) at least one
institution in the group has offices outside the United States. A
"group of institutions" means a parent corporation and its
subsidiaries (as such terms are defined in Section 107(a)(40)).

Section 2 would amend Insurance Law Section 1101(b)(2)(H) to reference
new Insurance Law Section 2117(k) Section 3 would set forth an
immediate effective date.

EXISTING LAW: Insurance Law Section 1101 defines the doing of an
insurance business and sets forth certain acts or transactions that,
if effected by mail from outside New York State by an unauthorized
insurer licensed to transact the business of insurance in its
domicile, will not constitute the doing of an insurance business in
New York State. Insurance Law Section 1102 prohibits any individual or
business entity from doing an insurance business in New York State
unless authorized by a license in force pursuant to the Insurance Law
or exempted from licensing by the Insurance Law.

Insurance Law Section 2102 prohibits any individual or business entity
from acting as an insurance agent or broker in New York State without
having authority to do so by virtue of a license issued and in force
pursuant to the Insurance Law.


Insurance Law Section 2117 generally prohibits any individual or
business entity from acting as an agent for any insurer or health
maintenance organization ("HMO") that is not licensed in New York
State in the doing of an insurance or HMO business in New York State
or in soliciting, negotiating, or effectuating any insurance policy or
contract. Section 2117 also generally prohibits such an individual or
business entity from acting as an insurance broker in soliciting,
negotiating, or in any way effectuating any insurance policy or
contract of or placing risks with, any such insurer or HMO, and also
prohibits in any way or manner the aiding of any such insurer or HMO
in effecting any insurance policy or contract. Section 2117 provides
certain limited exemptions from this general prohibition

JUSTIFICATION: New York State is a hub of international business, and
many multinational institutions, including corporations, partnerships,
and limited liability companies, have offices in or near New York
State,. These offices of the multinational entities often have an
interest in securing life insurance, accident and health insurance,
and annuity contracts for employees who reside outside the United
States, including employees who may be in the United States
temporarily.

Under Insurance Law Section 2117, among other things, a licensed
insurance broker generally may not solicit, negotiate, or in any way
effectuate any insurance policy or contract of or place risks with,
any insurer that is not licensed or authorized to do an insurance
business in New York State, nor shall any person in any way or manner
aid any such insurer in effectuating any insurance in this state.
However, Insurance Law Section 2117 provides certain exemptions from
the general prohibition if specific conditions are satisfied.

This bill would add a new limited exemption from the general
prohibition set forth in Insurance Law Section 2117. The new exemption
would permit a licensed insurance broker to engage in certain
specified activities in New York State related to group life, group
annuity, or group accident and health insurance policies or contracts
provided that an alien insurer issued or delivered the policy or
contract to a policyholder or proposed policyholder that is a
multinational entity resident outside the United States.

In addition, the insurance policy or contract may cover only the
institution's employees and their dependents provided that the
employees reside outside the United States, except that the policy or
contract may cover those employees who are temporarily in the United
States. The exemption would set forth additional conditions that must
be met by the alien insurer and would limit the activities of the
licensed insurance broker.

This bill would continue to protect policyholders and certificate
holders while allowing insurers to best meet the needs of their New
York customers with a global presence, thereby allowing New York to
continue functioning as a center of international business.

LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: None.


EFFECTIVE DATE: Immediately,

2015-S5647 (ACTIVE) - Bill Text download pdf

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

                                  5647

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              May 21, 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 permitting brokers  to
  engage in certain activities in New York

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

  Section 1. Section 2117 of the insurance law is amended  by  adding  a
new subsection (k) to read as follows:
  (K)(1)  NOTWITHSTANDING  SUBSECTION (A) OF THIS SECTION, ANY INSURANCE
BROKER LICENSED UNDER SUBPARAGRAPH (A) OF PARAGRAPH  ONE  OF  SUBSECTION
(B)  OF  SECTION  TWO  THOUSAND  ONE  HUNDRED  FOUR OF THIS ARTICLE WITH
RESPECT TO LIFE INSURANCE OR ANNUITIES, OR SUBPARAGRAPH (A)  OR  (B)  OF
PARAGRAPH ONE OF SUBSECTION (B) OF SUCH SECTION WITH RESPECT TO ACCIDENT
AND HEALTH INSURANCE MAY ENGAGE IN THE ACTIVITIES SPECIFIED IN PARAGRAPH
TWO  OF  THIS SUBSECTION WITH RESPECT TO AN ALIEN INSURER NOT AUTHORIZED
TO DO AN INSURANCE BUSINESS IN THIS STATE, PROVIDED THAT:
  (A) THE ACTIVITIES RELATE TO A POLICY OR CONTRACT OF GROUP LIFE, GROUP
ANNUITY, OR GROUP ACCIDENT AND HEALTH INSURANCE WHERE  THE  POLICYHOLDER
OR  PROPOSED POLICYHOLDER IS A MULTINATIONAL ENTITY RESIDENT OUTSIDE THE
UNITED STATES, THE POLICY OR CONTRACT COVERS THE MULTINATIONAL  ENTITY'S
EMPLOYEES  AND THEIR DEPENDENTS, AND THE EMPLOYEES RESIDE OUTSIDE OF THE
UNITED STATES, EXCEPT THAT THE POLICY OR CONTRACT MAY  PROVIDE  COVERAGE
TO EMPLOYEES WHO ARE TEMPORARILY INSIDE THE UNITED STATES;
  (B)  THE POLICY OR CONTRACT SHALL NOT BE UNDERWRITTEN OR NEGOTIATED IN
THIS STATE OR ISSUED OR DELIVERED IN THE UNITED STATES;
  (C) THE ALIEN INSURER IS AUTHORIZED TO TRANSACT THE KINDS OF INSURANCE
BUSINESS IN THE JURISDICTIONS WHERE THE POLICIES OR  CONTRACTS  WILL  BE
ISSUED OR DELIVERED AND THE POLICIES OR CONTRACTS ARE ISSUED IN CONFORM-
ANCE WITH THE LAWS OF SUCH JURISDICTIONS;
  (D)  BEFORE  ENGAGING  IN ANY OF THE ACTIVITIES SPECIFIED IN PARAGRAPH
TWO OF THIS SUBSECTION, THE LICENSED INSURANCE BROKER  PROVIDES  WRITTEN

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11241-02-5

S. 5647                             2

NOTICE  TO  THE  MULTINATIONAL  ENTITY  THAT  THE  ALIEN  INSURER IS NOT
LICENSED IN OR AUTHORIZED TO DO BUSINESS IN THIS STATE;  THE  POLICY  OR
CONTRACT  IS  NOT  PROTECTED  BY  THE NEW YORK STATE GUARANTY FUNDS; THE
POLICY  OR CONTRACT HAS NOT BEEN APPROVED BY THE SUPERINTENDENT; AND THE
POLICY OR CONTRACT MAY NOT BE SUBJECT TO ALL OF THE LAWS OF THIS STATE;
  (E) THE ALIEN INSURER SHALL NOT MAINTAIN ANY OFFICE IN THIS STATE; AND
  (F) EXCEPT AS SPECIFICALLY PROVIDED  IN  THIS  SECTION,  THE  LICENSED
INSURANCE  BROKER  SHALL  NOT CALL ATTENTION TO THE ALIEN INSURER BY ANY
ADVERTISEMENT OR PUBLIC ANNOUNCEMENT IN THIS STATE.
  (2) SUBJECT TO PARAGRAPH ONE OF THIS SUBSECTION, THE  LICENSED  INSUR-
ANCE  BROKER  MAY  ENGAGE IN THIS STATE IN ONLY THE FOLLOWING ACTIVITIES
WITH RESPECT TO THE ALIEN INSURER:
  (A) PROVIDE INFORMATION TO THE MULTINATIONAL ENTITY WITH RESPECT TO  A
POLICY  OR  CONTRACT OF GROUP LIFE, GROUP ANNUITY, OR GROUP ACCIDENT AND
HEALTH INSURANCE ISSUED OR DELIVERED OR THAT WILL BE ISSUED OR DELIVERED
BY THE ALIEN INSURER;
  (B) MEET AND DISCUSS INSURANCE NEEDS WITH  THE  MULTINATIONAL  ENTITY,
INCLUDING  PROVIDING  INFORMATION  DIRECTLY  TO  THE ENTITY IN PERSON OR
OTHERWISE ABOUT THE POLICIES OR CONTRACTS OFFERED BY THE ALIEN  INSURER;
AND  FACILITATING  INTRODUCTIONS  WITH  THE MULTINATIONAL ENTITY'S HUMAN
RESOURCES AND BENEFITS MANAGER IN EACH COUNTRY  IN  WHICH  THE  MULTINA-
TIONAL ENTITY HAS EMPLOYEE BENEFIT NEEDS;
  (C)  REFER  THE  MULTINATIONAL ENTITY TO THE ALIEN INSURER AND PROVIDE
INFORMATION TO THE MULTINATIONAL ENTITY ABOUT THE ALIEN INSURER;
  (D) RESPOND TO REQUESTS FOR  INFORMATION  BY  REPRESENTATIVES  OF  THE
MULTINATIONAL  ENTITY CONCERNING QUOTES AND ANY OTHER SPECIFIC TERMS AND
CONDITIONS OF A GROUP LIFE, GROUP ANNUITY, OR GROUP ACCIDENT AND  HEALTH
INSURANCE  POLICY OR CONTRACT BEING NEGOTIATED IN THE JURISDICTION WHERE
THE POLICY OR CONTRACT WILL BE ISSUED OR DELIVERED BY THE ALIEN INSURER;
  (E) PROVIDE INFORMATION CONCERNING RENEWALS OF  EXISTING  POLICIES  OR
CONTRACTS  OF  GROUP  LIFE,  GROUP ANNUITY, OR GROUP ACCIDENT AND HEALTH
INSURANCE ISSUED BY THE ALIEN INSURER; AND
  (F) MANAGE THE EMPLOYEE BENEFITS PROGRAM OF THE MULTINATIONAL  ENTITY,
INCLUDING  AGGREGATING  AND  REPORTING  EMPLOYEE  BENEFITS AND FINANCIAL
INFORMATION ABOUT THE PROGRAM.
  (3) ANY ACTIVITY IN WHICH A LICENSED  INSURANCE  BROKER  ENGAGES  WITH
RESPECT  TO AN ALIEN INSURER PURSUANT TO THIS SUBSECTION SHALL BE DEEMED
TO BE INCLUDED WITHIN THE MEANING OF "ANY OTHER TRANSACTION OF BUSINESS"
FOR THE PURPOSES OF SECTION ONE THOUSAND TWO HUNDRED  THIRTEEN  OF  THIS
ARTICLE.
  (4) FOR PURPOSES OF THIS SUBSECTION:
  (A)  "MULTINATIONAL ENTITY" SHALL MEAN AN INSTITUTION THAT IS A MEMBER
OF A MULTINATIONAL GROUP OF INSTITUTIONS OPERATING GLOBALLY  WHERE:  (I)
AT  LEAST  ONE  INSTITUTION IN THE GROUP IS FORMED UNDER THE LAWS OF THE
UNITED STATES OR HAS SIGNIFICANT OPERATIONS IN THE  UNITED  STATES;  AND
(II)  AT  LEAST  ONE  INSTITUTION  IN  THE GROUP HAS OFFICES OUTSIDE THE
UNITED STATES; AND
  (B) "GROUP OF INSTITUTIONS" SHALL MEAN A PARENT  CORPORATION  AND  ITS
SUBSIDIARIES.
  S 2. Subparagraph (H) of paragraph 2 of subsection (b) of section 1101
of the insurance law, as amended by section 2 of part I of chapter 61 of
the laws of 2011, is amended to read as follows:
  (H)  transactions  with  respect  to insurance contracts negotiated or
placed pursuant OR OTHERWISE SUBJECT to subsection (b), (c), [or] (j) OR
(K) of section two thousand one hundred seventeen of this chapter;
  S 3. This act shall take effect immediately.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Senate Bill S5647

Share this bill

Sponsored By

James L. Seward