Assembly Bill A11286

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

                                  11286

                          I N  A S S E M B L Y

                              May 25, 2010
                               ___________

Introduced  by M. of A. MORELLE -- read once and referred to the Commit-
  tee on Insurance

AN ACT to amend the insurance law, in relation to removing the  require-
  ment  for advertisements referring to an insurer to include the insur-
  er's full name and principal office and making  technical  corrections
  related thereto

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

  Section 1. Section 2122 of the insurance law is  amended  to  read  as
follows:
  S  2122.  Advertising  by  insurance  agents and brokers. (a) [(1)] No
insurance agent or insurance broker shall make or issue  in  this  state
any  advertisement,  sign,  pamphlet,  circular,  card  or  other public
announcement purporting to make known the  financial  condition  of  any
insurer,  unless  the  same shall conform to the requirements of section
one thousand three hundred thirteen of this chapter.
  [(2)] (B) No insurance agent, insurance broker or other person, shall,
by any advertisement or public announcement in this state,  call  atten-
tion to any unauthorized insurer or insurers.
  [(b)  Every  agent of any insurer and every insurance broker shall, in
all advertisements, public announcements,  signs,  pamphlets,  circulars
and cards, which refer to an insurer, set forth therein the name in full
of  the insurer referred to and the name of the city, town or village in
which it has its principal office in the United States.]
  S 2. Paragraph 5 of subsection (b) of section 1101  of  the  insurance
law,  as added by chapter 597 of the laws of 1999, is amended to read as
follows:
  (5) Notwithstanding the foregoing, an unauthorized insurer, which  (A)
is affiliated with an insurer licensed in this state, and (B) has satis-
fied  all  applicable requirements for placements by excess line brokers
as set forth in section two thousand one hundred eighteen of this  chap-
ter,  may  provide  from an office within the state, services to support
its insurance business. Such services shall not  be  deemed  under  this
chapter  as  doing an insurance business in this state. For the purposes

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

                                                           LBD16739-01-0

A. 11286                            2

of this section these services include, but are not limited to, computer
operations, clerical and  staffing  support,  underwriting,  negotiating
contract terms, quoting premiums, binding coverage, drafting and issuing
policies  and  claims  handling,  investigation and payment, among other
incidental services. Such services  shall  not  include  the  marketing,
soliciting  or advertising by the unauthorized insurer directly to poli-
cyholders. Notwithstanding [paragraph two of] subsection  [(a)]  (B)  of
section  two thousand one hundred twenty-two of this chapter, such unau-
thorized insurers shall be permitted to advertise  to,  and  market  and
solicit  through,  excess  line brokers licensed pursuant to section two
thousand one hundred five of this chapter. All  obligations  of  such  a
licensee  under  article twenty-one of this chapter shall remain in full
force and effect. Any document issued by the unauthorized  insurer  that
indicates  any location within this state in which it conducts its oper-
ations shall include a prominent notice that the insurer is not licensed
by the state of New York, in no smaller than 10 point type,  in  accord-
ance with regulations as may be promulgated by the superintendent.
  S  3. Subsection (i) of section 2117 of the insurance law, as added by
chapter 597 of the laws of 1999, is amended to read as follows:
  (i) Notwithstanding subsection (a) of this section, a licensed insurer
may provide, from its office in  the  state,  services  to  support  the
insurance  business  of  an unauthorized insurer with which it is affil-
iated, provided that the unauthorized insurer has satisfied all applica-
ble requirements for placements by excess line brokers as set  forth  in
section two thousand one hundred eighteen of this article. Such services
may  include, but shall not be limited to, computer operations, clerical
and staffing support, underwriting, negotiating contract terms,  quoting
premiums,  binding  coverage,  drafting  and issuing policies and claims
handling, investigation and payment, among  other  incidental  services.
Services  expressly prohibited under this section include the marketing,
soliciting or advertising by the unauthorized insurer directly to  poli-
cyholders.  Notwithstanding  [paragraph  two of] subsection [(a)] (B) of
section two thousand one hundred twenty-two of this article, such  unau-
thorized  insurers  shall  be  permitted to advertise to, and market and
solicit through, excess line brokers licensed pursuant  to  section  two
thousand  one  hundred  five  of this article, from an office within the
state. All obligations of such licensee under this article shall  remain
in full force and effect. Any document issued by an unauthorized insurer
that  indicates  any location within this state in which it conducts its
operations shall include a prominent notice  that  the  insurer  is  not
licensed  by the state of New York, in no smaller than 10 point type, in
accordance with regulations as may be promulgated by the superintendent.
  S 4. This act shall take effect immediately.