senate Bill S4327A

Relates to extending authorization for certain exemptions from filing requirements

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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

  • 21 / Mar / 2013
    • REFERRED TO INSURANCE
  • 14 / Jun / 2013
    • AMEND (T) AND RECOMMIT TO INSURANCE
  • 14 / Jun / 2013
    • PRINT NUMBER 4327A
  • 20 / Jun / 2013
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 20 / Jun / 2013
    • ORDERED TO THIRD READING CAL.1482
  • 20 / Jun / 2013
    • SUBSTITUTED BY A6918A

Summary

Relates to extending authorization for certain exemptions from filing requirements.

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Bill Details

See Assembly Version of this Bill:
A6918A
Versions:
S4327
S4327A
Legislative Cycle:
2013-2014
Law Section:
Insurance Law
Laws Affected:
Amd §6303, Ins L

Sponsor Memo

BILL NUMBER:S4327A

TITLE OF BILL:
An act
to amend the insurance law, in relation to extending authorization for
certain exemptions from filing requirements

PURPOSE OF THE BILL:

The purpose of this bill is to extend the sunset
date and remove certain filing requirements for the "large commercial
insured" exemption with regard to the free trade zone.

SUMMARY OF PROVISIONS:

Section 1 of the bill would amend Insurance Law § 6303(a)(3) to extend
until June 30, 2015, the exemption from rate and form filing
requirements for certain property/casualty policies written in the
free trade zone and to repeal the requirement that insurers file a
certificate of insurance with the Department of Financial Services
within one business day of writing such a policy.

Section 2 would provide an immediate effective date.

EXISTING LAW:

Insurance Law § 6303(a)(3) provides an exemption from rate and form
filing requirements for certain property/casualty policies(other than
medical malpractice insurance policies; workers' compensation
insurance policies, and certain other kinds of insurance policies)
issued to a "large commercial insured" (defined in law) that employs
or retains a special risk manager to assist in the negotiation and
purchase of a policy exempted under Article 63, provided, however,
that: (1) the special risk manager is not employed by the insurer
issuing the policy or any person in the insurer's holding company
system;(2) the special risk manager is licensed as an insurance
producer in New York pursuant to Article 21 of the Insurance Law,
unless otherwise exempt; (3) the insurer files with the
Superintendent of Financial Services (Superintendent) a certificate
of insurance evidencing the existence and terms of the policy within
one business day of binding the insurance coverage; and (4) policy
forms that have not been previously filed with the Superintendent are
filed with the Superintendent for informational purposes within three
business days after first delivery of a policy using such form, but
no later than 60 calendar days after the inception
date of such policy. This paragraph sunsets on June 30,2013.

PRIOR LEGISLATIVE HISTORY:

This is a new bill that would extend an exemption first enacted in 2011.

STATEMENT IN SUPPORT:

The predecessor to Article 63 of the Insurance Law was enacted in 1978
to encourage insurance producers to place their large or unusual
risks in the authorized New York market. At that time, overseas and
out-of-state companies, such as Lloyd's of London, wrote the great


majority of these risks. Article 63 was intended to allow New
York-authorized insurers to compete more effectively with the London
and out-of-state markets.

Subsequently, L. 2011, c. 490 Chapter 490, amended Insurance Law :5
6303(a) to add a new exemption from rate and form filing requirements
until June 30. 2013 for certain property/casualty policies (other
than medical malpractice insurance policies, workers' compensation
insurance policies, and certain other kinds of insurance policies)
issued to a "large commercial insured" (as that term is defined in
the statute) that employs or retains a special risk manager to assist
in the negotiation and purchase of a policy exempted under Article 63
of the Insurance Law.

This exemption was added to expand the ability of New York-authorized
insurers to compete more effectively with the London and out-of-state
markets, by permitting them to apply this exemption, so long as the
special risk manager meets certain qualifications and the insurer
makes certain informational filings. At the same time, Chapter 490
provided safeguards by allowing the Superintendent to re-impose
filing and approval requirements where and to the extent that the
Superintendent deems it in the interest of policyholders.

This bill would extend the sunset date of this exemption to June 30,
2015 and amend the filing requirements to continue the expanded
ability of New York-authorized insurers to compete more effectively
with the London and out-of-state markets.

FISCAL IMPLICATIONS:

None to the State.

EFFECTIVE DATE:

This bill would take effect immediately.

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

                                 4327--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             March 21, 2013
                               ___________

Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
  printed to be committed to the Committee  on  Insurance  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT  to  amend  the insurance law, in relation to extending authori-
  zation for certain exemptions from filing requirements

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

  Section  1.    Paragraph  3  of  subsection (a) of section 6303 of the
insurance law, as amended by chapter 490 of the laws of 2011, is amended
to read as follows:
  (3) until June thirtieth, two thousand [thirteen] FIFTEEN, the policy,
other than a medical malpractice insurance policy, is issued to a  large
commercial  insured  that  employs  or retains a special risk manager to
assist in the negotiation and purchase of a policy exempted  under  this
article, provided, however, that:
  (A)(i) the special risk manager is not employed by the insurer issuing
the policy or any person in the insurer's holding company system; and
  (ii)  the special risk manager is licensed as an insurance producer in
this state pursuant  to  article  twenty-one  of  this  chapter,  unless
exempted from licensing therein; AND
  (B)  [the  insurer shall file with the superintendent a certificate of
insurance evidencing the existence and terms of the  policy  within  one
business day of binding the insurance coverage; and
  (C)]  a policy form that has not been previously filed with the super-
intendent shall be  filed  with  the  superintendent  for  informational
purposes  within  three  business  days after first delivery of a policy
using such form, but no later than sixty calendar days after the  incep-
tion date of such policy.
  S 2. This act shall take effect immediately.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08856-06-3

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