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

                                  7789

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              May 27, 2015
                               ___________

Introduced by M. of A. CAHILL -- read once and referred to the Committee
  on Insurance

AN  ACT to amend the insurance law, in relation to permitting brokers to
  engage in certain activities in New York

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

  Section  1.  Section  2117 of the insurance law is amended by adding a
new subsection (k) 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 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 WHERE THE POLICYHOLDER
OR PROPOSED POLICYHOLDER IS A MULTINATIONAL ENTITY RESIDENT OUTSIDE  THE
UNITED  STATES, THE POLICY OR CONTRACT COVERS THE MULTINATIONAL ENTITY'S
EMPLOYEES AND THEIR DEPENDENTS, AND THE 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;
  (D) BEFORE ENGAGING IN ANY OF THE ACTIVITIES  SPECIFIED  IN  PARAGRAPH
TWO  OF  THIS SUBSECTION, THE LICENSED INSURANCE BROKER PROVIDES WRITTEN

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11241-02-5
              

A. 7789                             2

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 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  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 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. Subparagraph (H) of paragraph 2 of subsection (b) of section 1101
of the insurance law, as amended by section 2 of part I of chapter 61 of
the laws of 2011, is amended to read as follows:
  (H)  transactions  with  respect  to insurance contracts negotiated or
placed pursuant OR OTHERWISE SUBJECT to subsection (b), (c), [or] (j) OR
(K) of section two thousand one hundred seventeen of this chapter;
  S 3. This act shall take effect immediately.