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