Bill Text: NY A09175 | 2013-2014 | General Assembly | Amended
Bill Title: Relates to what constitutes doing an insurance business in the state.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Passed) 2014-11-21 - signed chap.449 [A09175 Detail]
Download: New_York-2013-A09175-Amended.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 9175--A I N A S S E M B L Y March 26, 2014 ___________ Introduced by M. of A. BRAUNSTEIN, SKOUFIS -- read once and referred 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: 1 Section 1. The opening paragraph and subparagraph (D) of paragraph 1 2 of subsection (b) of section 1101 of the insurance law, the opening 3 paragraph as amended by section 1 of part I of chapter 61 of the laws of 4 2011, are amended to read as follows: 5 Except as OTHERWISE provided in [paragraph two, three, three-a, or 6 seven of] this subsection, any of the following acts in this state, 7 effected by mail from outside this state or otherwise, by any person, 8 firm, association, corporation or joint-stock company shall constitute 9 doing an insurance business in this state and shall constitute doing 10 business in the state within the meaning of section three hundred two of 11 the civil practice law and rules: 12 (D) doing any kind of business, including a reinsurance business, 13 specifically recognized as constituting the doing of an insurance busi- 14 ness within the meaning of this chapter; OR 15 S 2. Subsection (b) of section 1101 of the insurance law is amended by 16 adding a new paragraph 8 to read as follows: 17 (8) NOTWITHSTANDING THE FOREGOING, THE MAINTENANCE OF A WEBSITE 18 OUTSIDE THE STATE BY AN UNAUTHORIZED FOREIGN OR ALIEN INSURER DULY 19 LICENSED TO TRANSACT THE BUSINESS OF INSURANCE IN AND BY THE LAWS OF ITS 20 DOMICILE, BY WHICH A MEMBER OF A GROUP MAY SELF-ENROLL, THROUGH AN AUTO- 21 MATED PROCESS, IN A GROUP LIFE, GROUP ANNUITY, OR GROUP ACCIDENT AND 22 HEALTH INSURANCE POLICY OR CONTRACT, AS DEFINED IN PARAGRAPHS ONE, TWO, 23 AND THREE OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN 24 OF THIS ARTICLE, SHALL NOT CONSTITUTE DOING AN INSURANCE BUSINESS IN 25 THIS STATE, BUT SECTION ONE THOUSAND TWO HUNDRED THIRTEEN OF THIS CHAP- 26 TER NEVERTHELESS SHALL APPLY TO THE INSURER; PROVIDED THAT: 27 (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. LBD13607-06-4 A. 9175--A 2 1 (I) PARAGRAPH ONE, TWO, FOUR (WITH RESPECT TO A POLICY ISSUED TO A 2 TRUSTEE OR TRUSTEES OF A FUND ESTABLISHED OR PARTICIPATED IN BY TWO OR 3 MORE EMPLOYERS, ONE OR MORE LABOR UNIONS, OR BY ONE OR MORE EMPLOYERS OR 4 LABOR UNIONS, PROVIDED THAT ALL SUCH EMPLOYERS OR LABOR UNIONS ARE IN 5 THE SAME INDUSTRY), OR FIVE OF SUBSECTION (B) OF SECTION FOUR THOUSAND 6 TWO HUNDRED SIXTEEN OF THIS CHAPTER; 7 (II) SUBPARAGRAPH (A), (B), (C), OR (D) (WITH RESPECT TO A POLICY 8 ISSUED TO A TRUSTEE OR TRUSTEES OF A FUND ESTABLISHED OR PARTICIPATED IN 9 BY TWO OR MORE EMPLOYERS, ONE OR MORE LABOR UNIONS, OR BY ONE OR MORE 10 EMPLOYERS OR LABOR UNIONS, PROVIDED THAT ALL SUCH EMPLOYERS OR LABOR 11 UNIONS ARE IN THE SAME INDUSTRY) OF PARAGRAPH ONE OF SUBSECTION (C) OF 12 SECTION FOUR THOUSAND TWO HUNDRED THIRTY-FIVE OF THIS CHAPTER; OR 13 (III) PARAGRAPHS ONE, TWO, THREE OR FOUR OF SUBSECTION (B) OF SECTION 14 FOUR THOUSAND TWO HUNDRED THIRTY-EIGHT OF THIS CHAPTER, BUT NOT INCLUD- 15 ING A GROUP ANNUITY CONTRACT: (I) FUNDING INDIVIDUAL RETIREMENT ACCOUNTS 16 OR INDIVIDUAL RETIREMENT ANNUITIES, AS DEFINED IN SECTION FOUR HUNDRED 17 EIGHT OF THE INTERNAL REVENUE CODE; (II) FUNDING ANNUITIES IN ACCORDANCE 18 WITH SUBDIVISION (B) OF SECTION FOUR HUNDRED THREE OF SUCH CODE; OR 19 (III) PROVIDING A PLAN OF RETIREMENT ANNUITIES UNDER WHICH THE PAYMENTS 20 ARE DERIVED WHOLLY FROM FUNDS CONTRIBUTED BY THE PERSONS COVERED. 21 (B) THE INSURER LAWFULLY ISSUED THE MASTER POLICY OR CONTRACT WITHOUT 22 THIS STATE IN A JURISDICTION WHERE THE INSURER WAS AUTHORIZED TO DO AN 23 INSURANCE BUSINESS; 24 (C) THE INSURER'S WEBSITE CLEARLY STATES THAT THE INSURER IS NOT 25 AUTHORIZED TO TRANSACT THE BUSINESS OF INSURANCE IN THIS STATE; AND 26 (D) THE INSURER DOES NOT HAVE ANY OTHER CONTACT OR INTERACTION WITH 27 THE MEMBER OTHER THAN AS SPECIFIED AND IN THE MANNER PROVIDED IN PARA- 28 GRAPH TWO OF THIS SUBSECTION. 29 S 3. This act shall take effect immediately.