senate Bill S3064

2013-2014 Legislative Session

Removes requirement for advertisements referring to an insurer to include the insurer's full name and principal office

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Archive: Last Bill Status - In Committee


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to insurance
Jan 29, 2013 referred to insurance

S3064 - Bill Details

Current Committee:
Law Section:
Insurance Law
Laws Affected:
Amd ยงยง2122, 1101 & 2117, Ins L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S6809
2009-2010: A11286

S3064 - Bill Texts

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Removes requirement for advertisements referring to an insurer to include the insurer's full name and principal office and makes technical corrections relating thereto.

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BILL NUMBER:S3064

TITLE OF BILL: An act to amend the insurance law, in relation to remov-
ing the requirement for advertisements referring to an insurer to
include the insurer's full name and principal office and making techni-
cal corrections related thereto

PURPOSE: The bill would amend the insurance law by deleting the require-
ment for advertisements referring to an insurer to include the insurer's
full name and principal office.

SUMMARY OF PROVISIONS: Section 1 of the bill deletes the requirement in
Section 2122(b) of the Insurance Law for agents and brokers to display
the insurer's full name and the name of the city, town or village of its
principal office in advertisements that refer to an insurer

Section 2 is the effective date

JUSTIFICATION: The bill modernizes the Insurance Law by removing
outdated, burdensome, and unnecessary requirements related to advertise-
ments by insurance producers.

Section 1 removes an outdated provision of the Insurance Law requiring
that when producers use advertisements that refer to an insurer, the
advertisement must display the insurer's full name and the name of the
city, town or village of the insurer's principal office. This outdated
law serves no public policy purpose in today's modern society and is
unnecessarily burdensome upon producers who must clutter phone book
advertisements and internet web pages with meaningless text. The law may
have been helpful to consumers in the days before widespread advertising
on television and the internet. Today, the vast majority of consumers
can identify insurers from company logos and other common names or
abbreviations that may not necessarily encompass the insurer's full
name. There is also no particular reason for advertisements to display
the location of an insurer's principal office Consumers are more
concerned with the location of the company representative who will
provide them with service.

LEGISLATIVE HISTORY: S.6809 of 2011-12 - referred to insurance
S.7380/A.11286 of 2009-2010 - referred to insurance

FISCAL IMPLICATIONS: None

EFFECTIVE DATE: Immediately

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

                                  3064

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 29, 2013
                               ___________

Introduced  by  Sen.  SEWARD -- 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 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-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08142-01-3

S. 3064                             2

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
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.

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