senate Bill S3665A

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

See Assembly Version of this Bill:
A7849
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

Sponsor 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.

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

                                 3665--A
    Cal. No. 552

                       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  --  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:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09628-02-1

S. 3665--A                          2

  (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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