senate Bill S6505B

Signed By Governor
2013-2014 Legislative Session

Relates to what constitutes doing an insurance business in the state

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Sponsored By

Archive: Last Bill Status Via A9175 - Signed by Governor


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Nov 21, 2014 signed chap.449
Nov 10, 2014 delivered to governor
Jun 11, 2014 returned to assembly
passed senate
3rd reading cal.240
substituted for s6505b
Jun 11, 2014 substituted by a9175a
Jun 02, 2014 amended on third reading 6505b
vote reconsidered - restored to third reading
May 30, 2014 returned to senate
recalled from assembly
May 12, 2014 referred to insurance
delivered to assembly
passed senate
Mar 12, 2014 advanced to third reading
Mar 11, 2014 2nd report cal.
Mar 10, 2014 1st report cal.240
Feb 25, 2014 print number 6505a
amend and recommit to insurance
Jan 31, 2014 referred to insurance

Votes

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Mar 10, 2014 - Insurance committee Vote

S6505A
18
1
committee
18
Aye
1
Nay
0
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show committee vote details

Bill Amendments

Original
A
B (Active)
Original
A
B (Active)

S6505 - Bill Details

See Assembly Version of this Bill:
A9175A
Law Section:
Insurance Law
Laws Affected:
Amd §1101, Ins L

S6505 - Bill Texts

view summary

Relates to what constitutes doing an insurance business in the state.

view sponsor memo
BILL NUMBER:S6505

TITLE OF BILL: An act to amend the insurance law, in relation to inter-
net enrollment of employees

PURPOSE: This bill would amend § 1101(b) of the insurance law to facili-
tate internet enrollment of an employee who is a resident of this state
and who is applying to be covered under a group life, health or annuity
contract that has been issued to an out-of-state employer by an insurer
that is otherwise not authorized to transact business in this state.

SUMMARY OF PROVISIONS: This bill would amend § 1101(b) of the insurance
law by making a conforming amendment to paragraph (1) and adding a new
paragraph (8) which establishes the circumstances under which an insurer
otherwise not authorized to do business in this state may facilitate
internet enrollment by a resident employee of this state for a group
life or accident and health insurance policy or a group annuity
contract.

JUSTIFICATION: Section 1101 of the insurance law defines what consti-
tutes "doing an insurance business" in New York state. Current
subsection (b)(2)-(7) of this section describe the circumstances under
which certain transactions are considered exempt from the section and
would not be considered "doing an insurance business" in this state.

This legislation seeks to add a new subsection (b)(8) to such section to
provide that an unauthorized insurer will not be "doing an insurance
business" in the state, if they offer an option for internet enrollment
by New York residents who are employed by an out of state employer under
a group life or group accident and health insurance policy or a group
annuity contract that is being issued by such unauthorized insurer. The
legislation also requires: 1) that the group insurance contract being
issued to the New York resident by the unauthorized insurer must comply
with certain provisions of the New York insurance law relating to group
insurance coverage; 2) that the insurer has lawfully issued the policy
or contract in a jurisdiction where the insurer is authorized to do an
insurance business; 3) that the insurer's website clearly states that
the insurer is not authorized to transact the business of insurance in
this state; and 4) that the insurer does not have any other contact with
the employee, other than as specified in § 1101(b)(2) of the insurance
law.

Section 1101(b)(2) of the current law already allows/facilitates enroll-
ment by mail (snail or e-mail) of New York-based employees of out-of-
state employers covered under certain group insurance contracts issued
by unauthorized insurers. The new paragraph (8) established pursuant to
this bill will similarly allow internet enrollment under such circum-
stances, using largely the same standards as that which currently
applies pursuant to the mail exception of subsection (b)(2).

Enactment of this bill will make it easier for New York-based employees
to enroll under the group insurance contracts offered by their out-of-

state employer when such contracts are offered by an unauthorized insur-
er. This internet enrollment option will only be made available if the
appropriate group insurance standards in the current New York insurance
law apply, similarly to what is currently required when New York employ-
ees are enrolled under these circumstances via mail.

LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: Immediately.

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

                                  6505

                            I N  S E N A T E

                            January 31, 2014
                               ___________

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 internet enrollment of
  employees

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

  Section  1.  The opening paragraph and subparagraph (D) of paragraph 1
of subsection (b) of section 1101 of  the  insurance  law,  the  opening
paragraph as amended by section 1 of part I of chapter 61 of the laws of
2011, are amended to read as follows:
  Except  as  OTHERWISE  provided  in [paragraph two, three, three-a, or
seven of] this subsection, any of the  following  acts  in  this  state,
effected  by  mail  from outside this state or otherwise, by any person,
firm, association, corporation or joint-stock company  shall  constitute
doing  an  insurance  business  in this state and shall constitute doing
business in the state within the meaning of section three hundred two of
the civil practice law and rules:
  (D) doing any kind of  business,  including  a  reinsurance  business,
specifically  recognized as constituting the doing of an insurance busi-
ness within the meaning of this chapter; OR
  S 2. 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,  THE  MAINTENANCE  OF  A  WEBSITE
OUTSIDE  THE  STATE  BY  AN  UNAUTHORIZED  FOREIGN OR ALIEN INSURER DULY
LICENSED TO TRANSACT THE BUSINESS OF INSURANCE IN AND BY THE LAWS OF ITS
DOMICILE, BY WHICH A MEMBER OF A GROUP MAY SELF-ENROLL, THROUGH AN AUTO-
MATED PROCESS, IN A GROUP LIFE, GROUP ANNUITY,  OR  GROUP  ACCIDENT  AND
HEALTH  INSURANCE POLICY OR CONTRACT, AS DEFINED IN PARAGRAPHS ONE, TWO,
AND THREE OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN
OF THIS ARTICLE, SHALL NOT CONSTITUTE DOING  AN  INSURANCE  BUSINESS  IN
THIS  STATE, BUT SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THIS ARTI-
CLE NEVERTHELESS SHALL APPLY TO THE INSURER; PROVIDED THAT:
  (A) THE GROUP CONFORMS TO THE DEFINITION OF ELIGIBILITY CONTAINED IN:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13607-01-4

S. 6505                             2

  (I) PARAGRAPH ONE, TWO, FOUR (WITH RESPECT TO A  POLICY  ISSUED  TO  A
TRUSTEE  OR  TRUSTEES OF A FUND ESTABLISHED OR PARTICIPATED IN BY TWO OR
MORE EMPLOYERS, ONE OR MORE LABOR UNIONS, OR BY ONE OR MORE EMPLOYERS OR
LABOR UNIONS, PROVIDED THAT ALL SUCH EMPLOYERS OR LABOR  UNIONS  ARE  IN
THE  SAME  INDUSTRY), OR FIVE OF SUBSECTION (B) OF SECTION FOUR THOUSAND
TWO HUNDRED SIXTEEN OF THIS CHAPTER;
  (II) SUBPARAGRAPH (A), (B), (C), OR (D)  (WITH  RESPECT  TO  A  POLICY
ISSUED TO A TRUSTEE OR TRUSTEES OF A FUND ESTABLISHED OR PARTICIPATED IN
BY  TWO  OR  MORE EMPLOYERS, ONE OR MORE LABOR UNIONS, OR BY ONE OR MORE
EMPLOYERS OR LABOR UNIONS, PROVIDED THAT ALL  SUCH  EMPLOYERS  OR  LABOR
UNIONS  ARE  IN THE SAME INDUSTRY) OF PARAGRAPH ONE OF SUBSECTION (C) OF
SECTION FOUR THOUSAND TWO HUNDRED THIRTY-FIVE OF THIS CHAPTER; OR
  (III) PARAGRAPHS ONE, TWO, THREE, FOUR OR ELEVEN OF SUBSECTION (B)  OF
SECTION  FOUR THOUSAND TWO HUNDRED THIRTY-EIGHT OF THIS CHAPTER, BUT NOT
INCLUDING A GROUP ANNUITY CONTRACT: (I)  FUNDING  INDIVIDUAL  RETIREMENT
ACCOUNTS  OR INDIVIDUAL RETIREMENT ANNUITIES, AS DEFINED IN SECTION FOUR
HUNDRED EIGHT OF THE INTERNAL REVENUE CODE; (II)  FUNDING  ANNUITIES  IN
ACCORDANCE  WITH  SUBDIVISION  (B) OF SECTION FOUR HUNDRED THREE OF SUCH
CODE; OR (III) PROVIDING A PLAN OF RETIREMENT ANNUITIES UNDER WHICH  THE
PAYMENTS  ARE  DERIVED  WHOLLY  FROM  FUNDS  CONTRIBUTED  BY THE PERSONS
COVERED.
  (B) THE INSURER LAWFULLY ISSUED THE MASTER POLICY OR CONTRACT  WITHOUT
THIS  STATE  IN A JURISDICTION WHERE THE INSURER WAS AUTHORIZED TO DO AN
INSURANCE BUSINESS;
  (C) THE INSURER'S WEBSITE CLEARLY  STATES  THAT  THE  INSURER  IS  NOT
AUTHORIZED TO TRANSACT THE BUSINESS OF INSURANCE IN THIS STATE; AND
  (D)  THE  INSURER  DOES NOT HAVE ANY OTHER CONTACT OR INTERACTION WITH
THE MEMBER OTHER THAN AS SPECIFIED AND IN THE MANNER PROVIDED  IN  PARA-
GRAPH TWO OF THIS SUBSECTION.
  S 3. This act shall take effect immediately.

S6505A - Bill Details

See Assembly Version of this Bill:
A9175A
Law Section:
Insurance Law
Laws Affected:
Amd §1101, Ins L

S6505A - Bill Texts

view summary

Relates to what constitutes doing an insurance business in the state.

view sponsor memo
BILL NUMBER:S6505A

TITLE OF BILL: An act to amend the insurance law, in relation to
internet enrollment of employees

PURPOSE:

This bill would amend § 1101(b) of the insurance law to facilitate
internet enrollment of an employee who is a resident of this state and
who is applying to be covered under a group life, health or annuity
contract that has been issued to an out-of-state employer by an
insurer that is otherwise not authorized to transact business in this
state.

SUMMARY OF PROVISIONS:

This bill would amend § 1101(b) of the insurance law by making a
conforming amendment to paragraph (1) and adding a new paragraph (8)
which establishes the circumstances under which an insurer otherwise
not authorized to do business in this state may facilitate internet
enrollment by a resident employee of this state for a group life or
accident and health insurance policy or a group annuity contract

JUSTIFICATION:

Section 1101 of the insurance law defines what constitutes "doing an
insurance business" in New York state. Current subsection (b)(2)-(7)
of this section describe the circumstances under which certain
transactions are considered exempt from the section and would not be
considered "doing an insurance business" in this state.

This legislation seeks to add a new subsection (b)(8) to such section
to provide that an unauthorized insurer will not be "doing an
insurance business" in the state, if they offer an option for internet
enrollment by New York residents who are employed by an out of state
employer under a group life or group accident and health insurance
policy or a group annuity contract that is being issued by such
unauthorized insurer. The legislation also requires: 1) that the group
insurance contract being issued to the New York resident by the
unauthorized insurer must comply with certain provisions of the New
York insurance law relating to group insurance coverage; 2) that the
insurer has lawfully issued the policy or contract in a jurisdiction
where the insurer is authorized to do an insurance business; 3) that
the insurer's website clearly states that the insurer is not
authorized to transact the business of insurance in this state; and 4)
that the insurer does not have any other contact with the employee,
other than as specified in § 1101(b)(2) of the insurance law.

Section 1101(b)(2) of the current law already allows/facilitates
enrollment by mail (snail or e-mail) of New York-based employees of
out-of-state employers covered under certain group insurance contracts
issued by unauthorized insurers. The new paragraph (8) established
pursuant to this bill will similarly allow internet enrollment under
such circumstances, using largely the same standards as that which
currently applies pursuant to the mail exception of subsection (b)(2).


Enactment of this bill will make it easier for New York-based
employees to enroll under the group insurance contracts offered by
their out-of-state employer when such contracts are offered by an
unauthorized insurer. This internet enrollment option will only be
made available if the appropriate group insurance standards in the
current New York insurance law apply, similarly to what is currently
required when New York employees are enrolled under these
circumstances via mail.

LEGISLATIVE HISTORY:

New bill.

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

Immediately.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 6505--A

                            I N  S E N A T E

                            January 31, 2014
                               ___________

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 internet enrollment of
  employees

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

  Section 1. The opening paragraph and subparagraph (D) of  paragraph  1
of  subsection  (b)  of  section  1101 of the insurance law, the opening
paragraph as amended by section 1 of part I of chapter 61 of the laws of
2011, are amended to read as follows:
  Except as OTHERWISE provided in [paragraph  two,  three,  three-a,  or
seven  of]  this  subsection,  any  of the following acts in this state,
effected by mail from outside this state or otherwise,  by  any  person,
firm,  association,  corporation or joint-stock company shall constitute
doing an insurance business in this state  and  shall  constitute  doing
business in the state within the meaning of section three hundred two of
the civil practice law and rules:
  (D)  doing  any  kind  of  business, including a reinsurance business,
specifically recognized as constituting the doing of an insurance  busi-
ness within the meaning of this chapter; OR
  S 2. 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,  THE  MAINTENANCE  OF  A WEBSITE
OUTSIDE THE STATE BY AN  UNAUTHORIZED  FOREIGN  OR  ALIEN  INSURER  DULY
LICENSED TO TRANSACT THE BUSINESS OF INSURANCE IN AND BY THE LAWS OF ITS
DOMICILE, BY WHICH A MEMBER OF A GROUP MAY SELF-ENROLL, THROUGH AN AUTO-
MATED  PROCESS,  IN  A  GROUP LIFE, GROUP ANNUITY, OR GROUP ACCIDENT AND
HEALTH INSURANCE POLICY OR CONTRACT, AS DEFINED IN PARAGRAPHS ONE,  TWO,
AND THREE OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN
OF  THIS  ARTICLE,  SHALL  NOT CONSTITUTE DOING AN INSURANCE BUSINESS IN
THIS STATE, BUT SECTION ONE THOUSAND TWO HUNDRED THIRTEEN OF THIS  ARTI-
CLE NEVERTHELESS SHALL APPLY TO THE INSURER; PROVIDED THAT:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13607-02-4

S. 6505--A                          2

  (A) THE GROUP CONFORMS TO THE DEFINITION OF ELIGIBILITY CONTAINED IN:
  (I)  PARAGRAPH  ONE,  TWO,  FOUR (WITH RESPECT TO A POLICY ISSUED TO A
TRUSTEE OR TRUSTEES OF A FUND ESTABLISHED OR PARTICIPATED IN BY  TWO  OR
MORE EMPLOYERS, ONE OR MORE LABOR UNIONS, OR BY ONE OR MORE EMPLOYERS OR
LABOR  UNIONS,  PROVIDED  THAT ALL SUCH EMPLOYERS OR LABOR UNIONS ARE IN
THE SAME INDUSTRY), OR FIVE OF SUBSECTION (B) OF SECTION  FOUR  THOUSAND
TWO HUNDRED SIXTEEN OF THIS CHAPTER;
  (II)  SUBPARAGRAPH  (A),  (B),  (C),  OR (D) (WITH RESPECT TO A POLICY
ISSUED TO A TRUSTEE OR TRUSTEES OF A FUND ESTABLISHED OR PARTICIPATED IN
BY TWO OR MORE EMPLOYERS, ONE OR MORE LABOR UNIONS, OR BY  ONE  OR  MORE
EMPLOYERS  OR  LABOR  UNIONS,  PROVIDED THAT ALL SUCH EMPLOYERS OR LABOR
UNIONS ARE IN THE SAME INDUSTRY) OF PARAGRAPH ONE OF SUBSECTION  (C)  OF
SECTION FOUR THOUSAND TWO HUNDRED THIRTY-FIVE OF THIS CHAPTER; OR
  (III)  PARAGRAPHS ONE, TWO, THREE, FOUR OR ELEVEN OF SUBSECTION (B) OF
SECTION FOUR THOUSAND TWO HUNDRED THIRTY-EIGHT OF THIS CHAPTER, BUT  NOT
INCLUDING  A  GROUP  ANNUITY CONTRACT: (I) FUNDING INDIVIDUAL RETIREMENT
ACCOUNTS OR INDIVIDUAL RETIREMENT ANNUITIES, AS DEFINED IN SECTION  FOUR
HUNDRED  EIGHT  OF  THE INTERNAL REVENUE CODE; (II) FUNDING ANNUITIES IN
ACCORDANCE WITH SUBDIVISION (B) OF SECTION FOUR HUNDRED  THREE  OF  SUCH
CODE;  OR (III) PROVIDING A PLAN OF RETIREMENT ANNUITIES UNDER WHICH THE
PAYMENTS ARE DERIVED  WHOLLY  FROM  FUNDS  CONTRIBUTED  BY  THE  PERSONS
COVERED.
  (B)  THE INSURER LAWFULLY ISSUED THE MASTER POLICY OR CONTRACT WITHOUT
THIS STATE IN A JURISDICTION WHERE THE INSURER WAS AUTHORIZED TO  DO  AN
INSURANCE BUSINESS;
  (C)  THE  INSURER'S  WEBSITE  CLEARLY  STATES  THAT THE INSURER IS NOT
AUTHORIZED TO TRANSACT THE BUSINESS OF INSURANCE IN THIS STATE; AND
  (D) THE INSURER DOES NOT HAVE ANY OTHER CONTACT  OR  INTERACTION  WITH
THE  MEMBER  OTHER THAN AS SPECIFIED AND IN THE MANNER PROVIDED IN PARA-
GRAPH TWO OF THIS SUBSECTION.
  S 3. This act shall take effect immediately.

S6505B (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A9175A
Law Section:
Insurance Law
Laws Affected:
Amd §1101, Ins L

S6505B (ACTIVE) - Bill Texts

view summary

Relates to what constitutes doing an insurance business in the state.

view sponsor memo
BILL NUMBER:S6505B

TITLE OF BILL: An act to amend the insurance law, in relation to
internet enrollment of employees

PURPOSE:

This bill would amend § 1101(b) of the insurance law to facilitate
internet enrollment of an employee who is a resident of this state and
who is applying to be covered under a group life, health or annuity
contract that has been issued to an out-of-state employer by an
insurer that is otherwise not authorized to transact business in this
state.

SUMMARY OF PROVISIONS:

This bill would amend § 1101(b) of the insurance law by making a
conforming amendment to paragraph (1) and adding a new paragraph (8)
which establishes the circumstances under which an insurer otherwise
not authorized to do business in this state may facilitate internet
enrollment by a resident employee of this state for a group life or
accident and health insurance policy or a group annuity contract.

JUSTIFICATION:

Section 1101 of the insurance law defines what constitutes "doing an
insurance business" in New York state Current subsection (b)(2)-(7) of
this section describe the circumstances under which certain
transactions are considered exempt from the section and would not be
considered "doing an insurance business" in this state.

This legislation seeks to add a new subsection (b)(8) to such section
to provide that an unauthorized insurer will not be "doing an
insurance business" in the state, if they offer an option for internet
enrollment by New York residents who are employed by an out of state
employer under a group life or group accident and health insurance
policy or a group annuity contract that is being issued by such
unauthorized insurer. The legislation also requires: 1) that the group
insurance contract being issued to the New York resident by the
unauthorized insurer must comply with certain provisions of the New
York insurance law relating to group insurance coverage; 2) that the
insurer has lawfully issued the policy or contract in a jurisdiction
where the insurer is authorized to do an insurance business; 3) that
the insurer's website clearly states that the insurer is not
authorized to transact the business of insurance in this state; and 4)
that the insurer does not have any other contact with the employee,
other than as specified in § 1101(b)(2) of the insurance law.

Section 1101(b)(2) of the current law already allows/facilitates
enrollment by mail (snail or e-mail) of New York-based employees of
out-of-state employers covered under certain group insurance contracts
issued by unauthorized insurers. The new paragraph (8) established
pursuant to this bill will similarly allow Internet enrollment under
such circumstances, using largely the same standards as that which
currently applies pursuant to the mail exception of subsection (b)(2).


Enactment of this bill will make it easier for New York-based
employees to enroll under the group insurance contracts offered by
their out-of-state employer when such contracts are offered by an
unauthorized insurer. This internet enrollment option will only be
made available if the appropriate group insurance standards in the
current New York insurance law apply, similarly to what is currently
required when New York employees are enrolled under these
circumstances via mail.

LEGISLATIVE HISTORY:

New bill

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

Immediately.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 6505--B
    Cal. No. 240

                            I N  S E N A T E

                            January 31, 2014
                               ___________

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 -- reported favorably from said committee, ordered
  to first and second report, ordered to  a  third  reading,  passed  by
  Senate  and  delivered  to  the Assembly, recalled, vote reconsidered,
  restored to 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 internet enrollment of
  employees

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

  Section 1. The opening paragraph and subparagraph (D) of  paragraph  1
of  subsection  (b)  of  section  1101 of the insurance law, the opening
paragraph as amended by section 1 of part I of chapter 61 of the laws of
2011, are amended to read as follows:
  Except as OTHERWISE provided in [paragraph  two,  three,  three-a,  or
seven  of]  this  subsection,  any  of the following acts in this state,
effected by mail from outside this state or otherwise,  by  any  person,
firm,  association,  corporation or joint-stock company shall constitute
doing an insurance business in this state  and  shall  constitute  doing
business in the state within the meaning of section three hundred two of
the civil practice law and rules:
  (D)  doing  any  kind  of  business, including a reinsurance business,
specifically recognized as constituting the doing of an insurance  busi-
ness within the meaning of this chapter; OR
  S 2. 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,  THE  MAINTENANCE  OF  A WEBSITE
OUTSIDE THE STATE BY AN  UNAUTHORIZED  FOREIGN  OR  ALIEN  INSURER  DULY
LICENSED TO TRANSACT THE BUSINESS OF INSURANCE IN AND BY THE LAWS OF ITS
DOMICILE, BY WHICH A MEMBER OF A GROUP MAY SELF-ENROLL, THROUGH AN AUTO-
MATED  PROCESS,  IN  A  GROUP LIFE, GROUP ANNUITY, OR GROUP ACCIDENT AND
HEALTH INSURANCE POLICY OR CONTRACT, AS DEFINED IN PARAGRAPHS ONE,  TWO,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13607-07-4

S. 6505--B                          2

AND THREE OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN
OF  THIS  ARTICLE,  SHALL  NOT CONSTITUTE DOING AN INSURANCE BUSINESS IN
THIS STATE, BUT SECTION ONE THOUSAND TWO HUNDRED THIRTEEN OF THIS  CHAP-
TER NEVERTHELESS SHALL APPLY TO THE INSURER; PROVIDED THAT:
  (A) THE GROUP CONFORMS TO THE DEFINITION OF ELIGIBILITY CONTAINED IN:
  (I)  PARAGRAPH  ONE,  TWO,  FOUR (WITH RESPECT TO A POLICY ISSUED TO A
TRUSTEE OR TRUSTEES OF A FUND ESTABLISHED OR PARTICIPATED IN BY  TWO  OR
MORE EMPLOYERS, ONE OR MORE LABOR UNIONS, OR BY ONE OR MORE EMPLOYERS OR
LABOR  UNIONS,  PROVIDED  THAT ALL SUCH EMPLOYERS OR LABOR UNIONS ARE IN
THE SAME INDUSTRY), OR FIVE OF SUBSECTION (B) OF SECTION  FOUR  THOUSAND
TWO HUNDRED SIXTEEN OF THIS CHAPTER;
  (II)  SUBPARAGRAPH  (A),  (B),  (C),  OR (D) (WITH RESPECT TO A POLICY
ISSUED TO A TRUSTEE OR TRUSTEES OF A FUND ESTABLISHED OR PARTICIPATED IN
BY TWO OR MORE EMPLOYERS, ONE OR MORE LABOR UNIONS, OR BY  ONE  OR  MORE
EMPLOYERS  OR  LABOR  UNIONS,  PROVIDED THAT ALL SUCH EMPLOYERS OR LABOR
UNIONS ARE IN THE SAME INDUSTRY) OF PARAGRAPH ONE OF SUBSECTION  (C)  OF
SECTION FOUR THOUSAND TWO HUNDRED THIRTY-FIVE OF THIS CHAPTER; OR
  (III)  PARAGRAPHS ONE, TWO, THREE OR FOUR OF SUBSECTION (B) OF SECTION
FOUR THOUSAND TWO HUNDRED THIRTY-EIGHT OF THIS CHAPTER, BUT NOT  INCLUD-
ING A GROUP ANNUITY CONTRACT: (I) FUNDING INDIVIDUAL RETIREMENT ACCOUNTS
OR  INDIVIDUAL  RETIREMENT ANNUITIES, AS DEFINED IN SECTION FOUR HUNDRED
EIGHT OF THE INTERNAL REVENUE CODE; (II) FUNDING ANNUITIES IN ACCORDANCE
WITH SUBDIVISION (B) OF SECTION FOUR HUNDRED  THREE  OF  SUCH  CODE;  OR
(III)  PROVIDING A PLAN OF RETIREMENT ANNUITIES UNDER WHICH THE PAYMENTS
ARE DERIVED WHOLLY FROM FUNDS CONTRIBUTED BY THE PERSONS COVERED.
  (B) THE INSURER LAWFULLY ISSUED THE MASTER POLICY OR CONTRACT  WITHOUT
THIS  STATE  IN A JURISDICTION WHERE THE INSURER WAS AUTHORIZED TO DO AN
INSURANCE BUSINESS;
  (C) THE INSURER'S WEBSITE CLEARLY  STATES  THAT  THE  INSURER  IS  NOT
AUTHORIZED TO TRANSACT THE BUSINESS OF INSURANCE IN THIS STATE; AND
  (D)  THE  INSURER  DOES NOT HAVE ANY OTHER CONTACT OR INTERACTION WITH
THE MEMBER OTHER THAN AS SPECIFIED AND IN THE MANNER PROVIDED  IN  PARA-
GRAPH TWO OF THIS SUBSECTION.
  S 3. This act shall take effect immediately.

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