Assembly Bill A10640

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

                                  10640

                          I N  A S S E M B L Y

                              June 10, 2016
                               ___________

Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Cahill) --
  read once and referred to the Committee on Insurance

AN ACT to amend the insurance law, in relation to  permitting  insurance
  brokers  to  engage in certain activities with respect to property and
  casualty insurance in New York

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

  Section  1.  Subsection  (k)  of section 2117 of the insurance law, as
added by chapter 64 of the laws of 2015, is amended to read as follows:
  (k)(1) Notwithstanding subsection (a) of this section,  any  insurance
broker  licensed  under  subparagraph (A) of paragraph one of subsection
(b) of section two thousand  one  hundred  four  of  this  article  with
respect  to life insurance or annuities, [or] subparagraph (A) or (B) of
paragraph one of subsection (b) of such section with respect to accident
and health insurance, OR SUBPARAGRAPH (B) OF THIS PARAGRAPH WITH RESPECT
TO PROPERTY/CASUALTY INSURANCE may engage in the activities specified in
paragraph two of this subsection with respect to an  alien  insurer  not
authorized to do an insurance business in this state, provided that:
  (A) the activities relate to a policy or contract of group life, group
annuity,  [or] group accident and health insurance, OR PROPERTY/CASUALTY
INSURANCE where the policyholder or proposed policyholder is a  multina-
tional entity resident outside the United States, the policy or contract
covers the multinational entity's LIABILITIES, PROPERTIES, employees and
their  dependents,  and the LIABILITIES, PROPERTIES AND employees reside
outside of the United States, except that the  policy  or  contract  may
provide  coverage  to  employees  who  are temporarily inside the United
States;
  (B) the policy or contract shall not be underwritten or negotiated  in
this state or issued or delivered in the United States;
  (C) the alien insurer is authorized to transact the kinds of insurance
business  in  the  jurisdictions where the policies or contracts will be
issued or delivered and the policies or contracts are issued in conform-
ance with the laws of such jurisdictions;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14591-01-6
              

A. 10640                            2

  (D) before engaging in any of the activities  specified  in  paragraph
two  of  this subsection, the licensed insurance broker provides written
notice to the  multinational  entity  that  the  alien  insurer  is  not
licensed  in  or  authorized to do business in this state; the policy or
contract  is  not  protected  by  the New York state guaranty funds; the
policy or contract has not been approved by the superintendent; and  the
policy or contract may not be subject to all of the laws of this state;
  (E) the alien insurer shall not maintain any office in this state; and
  (F)  except  as  specifically  provided  in this section, the licensed
insurance broker shall not call attention to the alien  insurer  by  any
advertisement or public announcement in this state.
  (2)  Subject  to paragraph one of this subsection, the licensed insur-
ance broker may engage in this state in only  the  following  activities
with respect to the alien insurer:
  (A)  provide information to the multinational entity with respect to a
policy or contract of group life, group annuity, [or] group accident and
health insurance, OR A  PROPERTY/CASUALTY  INSURANCE  POLICY  issued  or
delivered or that will be issued or delivered by the alien insurer;
  (B)  meet  and  discuss insurance needs with the multinational entity,
including providing information directly to  the  entity  in  person  or
otherwise  about the policies or contracts offered by the alien insurer;
and facilitating introductions with  the  multinational  entity's  human
resources  and  benefits  manager  in each country in which the multina-
tional entity has employee benefit needs;
  (C) refer the multinational entity to the alien  insurer  and  provide
information to the multinational entity about the alien insurer;
  (D)  respond  to  requests  for  information by representatives of the
multinational entity concerning quotes and any other specific terms  and
conditions  of  a  group  life,  group  annuity, [or] group accident and
health insurance, OR  PROPERTY/CASUALTY  INSURANCE  policy  or  contract
being  negotiated  in the jurisdiction where the policy or contract will
be issued or delivered by the alien insurer;
  (E) provide information concerning renewals of  existing  policies  or
contracts  of  group life, group annuity, [or] group accident and health
insurance, OR A PROPERTY/CASUALTY INSURANCE POLICY issued by  the  alien
insurer; and
  (F)  manage the employee benefits program of the multinational entity,
including aggregating and  reporting  employee  benefits  and  financial
information about the program.
  (3)  Any  activity  in  which a licensed insurance broker engages with
respect to an alien insurer pursuant to this subsection shall be  deemed
to be included within the meaning of "any other transaction of business"
for  the  purposes  of section one thousand two hundred thirteen of this
article.
  (4) For purposes of this subsection:
  (A) "multinational entity" shall mean an institution that is a  member
of  a  multinational group of institutions operating globally where: (i)
at least one institution in the group is formed under the  laws  of  the
United  States  or  has significant operations in the United States; and
(ii) at least one institution in  the  group  has  offices  outside  the
United States; and
  (B)  "group  of  institutions" shall mean a parent corporation and its
subsidiaries.
  S 2. This act shall take effect immediately.