senate Bill S3665

Amended

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

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 01 / Mar / 2011
    • REFERRED TO INSURANCE
  • 09 / May / 2011
    • 1ST REPORT CAL.552
  • 10 / May / 2011
    • 2ND REPORT CAL.
  • 11 / May / 2011
    • ADVANCED TO THIRD READING
  • 07 / Jun / 2011
    • AMENDED ON THIRD READING 3665A
  • 13 / Jun / 2011
    • PASSED SENATE
  • 13 / Jun / 2011
    • DELIVERED TO ASSEMBLY
  • 13 / Jun / 2011
    • REFERRED TO INSURANCE
  • 04 / Jan / 2012
    • DIED IN ASSEMBLY
  • 04 / Jan / 2012
    • RETURNED TO SENATE
  • 04 / Jan / 2012
    • REFERRED TO INSURANCE
  • 04 / Jun / 2012
    • 1ST REPORT CAL.991
  • 05 / Jun / 2012
    • 2ND REPORT CAL.
  • 06 / Jun / 2012
    • ADVANCED TO THIRD READING
  • 12 / Jun / 2012
    • PASSED SENATE
  • 12 / Jun / 2012
    • DELIVERED TO ASSEMBLY
  • 12 / Jun / 2012
    • REFERRED TO INSURANCE

Summary

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

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Bill Details

Versions:
S3665
S3665A
Legislative Cycle:
2011-2012
Current Committee:
Assembly Insurance
Law Section:
Insurance Law
Laws Affected:
Amd ยงยง1101 & 2117, Ins L
Versions Introduced in 2009-2010 Legislative Cycle:
S7674

Votes

17
0
17
Aye
0
Nay
1
aye with reservations
0
absent
0
excused
0
abstained
show Insurance committee vote details

Sponsor Memo

BILL NUMBER:S3665

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 (b) (7) 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 (j) 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.

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

                                  3665

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              March 1, 2011
                               ___________

Introduced  by  Sen. BRESLIN -- 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  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 7 to read as follows:
  (7) 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  STATE,  PROVIDED  THAT  SUCH PERSON IS IN THE SAME HOLDING COMPANY
SYSTEM WITH A  DOMESTIC  INSURER  AND  THE  AFOREMENTIONED  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  2.  Section  2117  of  the insurance law is amended by adding a new
subsection (j) to read as follows:
  (J) 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.
                                                           LBD09628-01-1

S. 3665                             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 STATE, PROVIDED THAT SUCH PERSON IS IN THE SAME HOLDING
COMPANY SYSTEM WITH A DOMESTIC INSURER AND THE AFOREMENTIONED  UNAUTHOR-
IZED 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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