NY State Senate Bill 2017-S3959A

Senate Bill S3959A

Signed By Governor

2017-2018 Legislative Session

Relates to activities of alien insurance brokers with respect to property/casualty insurance

download bill text pdf

Archive: Last Bill Status - Signed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Nov 29, 2017	signed chap.431
Nov 17, 2017	delivered to governor
Jun 20, 2017	returned to senate passed assembly ordered to third reading rules cal.584 substituted for a97a
Jun 13, 2017	referred to insurance delivered to assembly passed senate
Jun 05, 2017	amended on third reading 3959a
May 03, 2017	advanced to third reading
May 02, 2017	2nd report cal.
May 01, 2017	1st report cal.675
Jan 31, 2017	referred to insurance

Votes

- Jun 13, 2017 - Floor Vote
  S3959A
  
  63
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 13, 2017
      
      aye (63)
      
      Addabbo Jr.
      
      Akshar
      
      Alcantara
      
      Amedore
      
      Avella
      
      Bailey
      
      Benjamin
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      Croci
      
      DeFrancisco
      
      Diaz
      
      Dilan
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Hamilton
      
      Hannon
      
      Helming
      
      Hoylman-Sigal
      
      Jacobs
      
      Kaminsky
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Latimer
      
      Little
      
      Marcellino
      
      Marchione
      
      Montgomery
      
      Murphy
      
      O'Mara
      
      Ortt
      
      Parker
      
      Peralta
      
      Persaud
      
      Phillips
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Sanders Jr.
      
      Savino
      
      Serino
      
      Serrano
      
      Seward
      
      Squadron
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Valesky
      
      Young
  May 1, 2017 - Insurance Committee Vote
  S3959A
  
  18
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Insurance Committee Vote: May 1, 2017
      
      aye (18)
      
      Akshar
      
      Breslin
      
      Brooks
      
      Golden
      
      Hamilton
      
      Jacobs
      
      Kennedy
      
      LaValle
      
      Lanza
      
      Larkin
      
      Latimer
      
      Murphy
      
      O'Mara
      
      Phillips
      
      Rivera
      
      Savino
      
      Serino
      
      Seward
      
      excused (1)
      
      Parker

Bill Amendments

Original

A (Active)

2017-S3959 - Details

See Assembly Version of this Bill:: A97
Law Section:: Insurance Law
Laws Affected:: Amd §2117, Ins L
Versions Introduced in 2015-2016 Legislative Session:: S7039, A10640

2017-S3959 - Summary

Permits activities of alien insurance brokers with respect to property/casualty insurance.

2017-S3959 - Sponsor Memo

                                 BILL NUMBER:  S3959      Revised 5/2/17

 TITLE OF BILL :  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

 PURPOSE :

Enact an amendment to Chapter 64 of the Laws of 2015 to expand the
authorization of a licensed insurance broker to engage in certain
activities regarding issuance of life or health insurance policies or
contracts to also include activities leading to issuance of property
and casualty insurance policies or contracts

 SUMMARY OF PROVISIONS :

Section 1 amends Insurance Law section 2117 (k) to clarify that a
licensed insurance broker is permitted, under certain specified
conditions, to: 1) provide information to a multinational entity
resident outside the United States with respect to a property/casualty
insurance policy or contract issued or delivered, or that will be
issued or delivered, by an alien insurer; 2) meet and discuss
property/casualty insurance needs with the multinational entity; 3)
refer the multinational entity to the alien insurer and provide
information to the multinational entity about the alien insurer; 4)
respond to requests for information by representatives of the

multinational entity concerning quotes and any other specific terms
and conditions of such a policy or contract being negotiated in the
jurisdiction where the policy or contract will be issued or delivered
by the alien insurer; and 5) provide information concerning renewals
of existing such policies or contracts issued by the alien insurer.

Section 2 is the effective date.

 JUSTIFICATION :

New York amended its insurance law with enactment of Chapter 64 of
2015, to maintain and enhance New York State's status as a hub of
international business by authorizing a licensed insurance broker to
engage in certain specified activities in New York related to group
life, group annuity, or group accident and health insurance policies
or contracts provided that an alien insurer issued or delivered the
policy or contract to a policyholder or proposed policyholder that is
a multinational entity outside the United States. This bill is a
chapter amendment to this law that would clarify that
property/casualty insurance is also an authorized type of insurance
that a licensed broker could bring to an alien insurer for placement
with a multinational entity resident outside the U.S.

This measure would further ensure adequate protection for
policyholders while allowing property and casualty insurers to
continue to meet the needs of their New York customers with a global
presence, thereby maintaining New York's place as a vital center of
international business.

 LEGISLATIVE HISTORY :

S.7039 of 2016-Passed Senate.   FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
Immediately.

2017-S3959 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3959
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 31, 2017
                                ___________
 
 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  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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD01679-01-7

 S. 3959                             2
 
 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
 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.
   § 2. This act shall take effect immediately.

2017-S3959A (ACTIVE) - Details

See Assembly Version of this Bill:: A97
Law Section:: Insurance Law
Laws Affected:: Amd §2117, Ins L
Versions Introduced in 2015-2016 Legislative Session:: S7039, A10640

2017-S3959A (ACTIVE) - Summary

Permits activities of alien insurance brokers with respect to property/casualty insurance.

2017-S3959A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S3959A

 TITLE OF BILL :  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

 PURPOSE :

Enact an amendment to Chapter 64 of the Laws of 2015 to expand the
authorization of a licensed insurance broker to engage in certain
activities regarding issuance of life or health insurance policies or
contracts to also include activities leading to issuance of property
and casualty insurance policies or contracts

 SUMMARY OF PROVISIONS :

Section 1 amends Insurance Law section 2117 (k) to clarify that a
licensed insurance broker is permitted, under certain specified
conditions, to: 1) provide information to a multinational entity
resident outside the United States with respect to a property/casualty
insurance policy or contract issued or delivered, or that will be
issued or delivered, by an alien insurer; 2) meet and discuss
property/casualty insurance needs with the multinational entity; 3)
refer the multinational entity to the alien insurer and provide
information to the multinational entity about the alien insurer; 4)
respond to requests for information by representatives of the

multinational entity concerning quotes and any other specific terms
and conditions of such a policy or contract being negotiated in the
jurisdiction where the policy or contract will be issued or delivered
by the alien insurer; and 5) provide information concerning renewals
of existing such policies or contracts issued by the alien insurer.

Section 2 is the effective date.

 JUSTIFICATION :

New York amended its insurance law with enactment of Chapter 64 of
2015, to maintain and enhance New York State's status as a hub of
international business by authorizing a licensed insurance broker to
engage in certain specified activities in New York related to group
life, group annuity, or group accident and health insurance policies
or contracts provided that an alien insurer issued or delivered the
policy or contract to a policyholder or proposed policyholder that is
a multinational entity outside the United States. This bill is a
chapter amendment to this law that would clarify that
property/casualty insurance is also an authorized type of insurance
that a licensed broker could bring to an alien insurer for placement
with a multinational entity resident outside the U.S.

This measure would further ensure adequate protection for
policyholders while allowing property and casualty insurers to
continue to meet the needs of their New York customers with a global
presence, thereby maintaining New York's place as a vital center of
international business.

 LEGISLATIVE HISTORY :

S.7039 of 2016-Passed Senate.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
Immediately.

2017-S3959A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3959--A
     Cal. No. 675
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 31, 2017
                                ___________
 
 Introduced  by  Sen.  SEWARD -- 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 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  ARISE,  OR  THE  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;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD01679-02-7

 S. 3959--A                          2
 
   (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
 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

 S. 3959--A                          3
 
 (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.
   § 2. This act shall take effect immediately.

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