S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7701
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 20, 2021
                                ___________
 
 Introduced by M. of A. HUNTER -- read once and referred to the Committee
   on Insurance
 
 AN  ACT  to  amend the insurance law, in relation to improving insurance
   consumer servicing options
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Subparagraph  (C)  of  paragraph  2  of subsection (b) of
 section 1101 of the insurance law is amended to read as follows:
   (C) transactions involving the continuance or  servicing  of  life  or
 accident  and  health  insurance  policies or annuity contracts lawfully
 issued or delivered in this state by an authorized insurer and occurring
 subsequent to the termination of  such  insurer's  authority  to  do  an
 insurance  business  in  this  state. NOTWITHSTANDING THE FOREGOING, THE
 SUPERINTENDENT'S APPROVAL GRANTED PURSUANT TO SECTION ONE  THOUSAND  ONE
 HUNDRED  FIVE  OF  THIS ARTICLE MAY AUTHORIZE TRANSACTIONS INVOLVING THE
 CONTINUANCE OR SERVICING OF LIFE INSURANCE POLICIES OR ANNUITY CONTRACTS
 TO BE EFFECTED FROM OUTSIDE THIS STATE BY TELEPHONE, VIDEO CALL, FACSIM-
 ILE, WEB PORTAL, ELECTRONIC TRANSFER OF FUNDS, OR BY ANY OTHER ELECTRON-
 IC MEANS APPROVED BY THE SUPERINTENDENT, PROVIDED THAT THE INSURER SHALL
 NOT HAVE ANY OTHER CONTACT OR INTERACTION WITH A PERSON  IN  THIS  STATE
 OTHER THAN AS SPECIFIED AND IN THE MANNER PROVIDED IN THIS PARAGRAPH;
   § 2. Subparagraph (D) of paragraph 2 of subsection (b) of section 1101
 of the insurance law is amended to read as follows:
   (D)  transactions  with  respect  to  policies  or  annuity  contracts
 lawfully issued without this state occurring subsequent to issue, if, at
 the time of issue, such policies or contracts covered subjects of insur-
 ance or risks not resident or located in this  state.    NOTWITHSTANDING
 THE FOREGOING, TRANSACTIONS DESCRIBED IN THIS SUBPARAGRAPH INVOLVING THE
 CONTINUANCE OR SERVICING OF LIFE INSURANCE POLICIES OR ANNUITY CONTRACTS
 MAY  BE  EFFECTED  FROM  OUTSIDE  THIS  STATE  BY TELEPHONE, VIDEO CALL,
 FACSIMILE, WEB PORTAL, ELECTRONIC TRANSFER OF FUNDS,  OR  BY  ANY  OTHER
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10447-03-1

 A. 7701                             2
 
 ELECTRONIC  MEANS  APPROVED  BY  THE  SUPERINTENDENT,  PROVIDED THAT THE
 INSURER SHALL NOT HAVE ANY OTHER CONTACT OR INTERACTION WITH A PERSON IN
 THIS STATE OTHER THAN AS SPECIFIED AND IN THE MANNER  PROVIDED  IN  THIS
 PARAGRAPH;
   § 3. Section 1105 of the insurance law is amended to read as follows:
   §  1105.  Voluntarily  ceasing to maintain license. When an authorized
 insurer proposes to cease to maintain its existing licensing  status  in
 this  state,  the  insurer  shall at least forty-five days prior to such
 proposed action submit to the  superintendent  a  plan  to  protect  the
 interests  of  the  people of this state. Such proposed action shall not
 become effective without the approval of such plan  by  the  superinten-
 dent. The plan shall include requirements and procedures for meeting the
 insurer's  contractual obligations, providing security protection in the
 event of a subsequent insolvency, and meeting any  applicable  statutory
 obligations, including its obligations pursuant to articles fifty-three,
 fifty-four and fifty-five of this chapter. Such plan shall be in compli-
 ance  with  a regulation to be promulgated by the superintendent. A PLAN
 MAY REQUEST THAT THE INSURER BE PERMITTED TO CONTINUE OR SERVICE A  LIFE
 INSURANCE  POLICY  OR  ANNUITY CONTRACT FROM OUTSIDE THIS STATE BY TELE-
 PHONE, VIDEO CALL, FACSIMILE, WEB PORTAL, ELECTRONIC TRANSFER OF  FUNDS,
 OR  BY  ANY  OTHER  ELECTRONIC  MEANS  AS APPROVED BY THE SUPERINTENDENT
 PURSUANT TO SUBPARAGRAPH (C) OF  PARAGRAPH  TWO  OF  SUBSECTION  (B)  OF
 SECTION  ONE  THOUSAND  ONE  HUNDRED  ONE  OF  THIS ARTICLE. In order to
 protect the interests of the people of this  state,  the  superintendent
 may  require  the  deposit of securities in this state, in trust, in the
 name of the superintendent.
   § 4. This act shall take effect immediately.