Bill Text: NY A07701 | 2021-2022 | General Assembly | Introduced

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Bill Title: Improves insurance consumer servicing options; modernizes the methods of consumer servicing that unauthorized insurers are permitted to use, including servicing by telephone, video call, facsimile, web portal, electronic transfer of funds and other methods approved by the superintendent of financial services.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2021-07-16 - signed chap.266 [A07701 Detail]

Download: New_York-2021-A07701-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          7701

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                      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:

     1    Section  1.  Subparagraph  (C)  of  paragraph  2  of subsection (b) of
     2  section 1101 of the insurance law is amended to read as follows:
     3    (C) transactions involving the continuance or  servicing  of  life  or
     4  accident  and  health  insurance  policies or annuity contracts lawfully
     5  issued or delivered in this state by an authorized insurer and occurring
     6  subsequent to the termination of  such  insurer's  authority  to  do  an
     7  insurance  business  in  this  state. Notwithstanding the foregoing, the
     8  superintendent's approval granted pursuant to section one  thousand  one
     9  hundred  five  of  this article may authorize transactions involving the
    10  continuance or servicing of life insurance policies or annuity contracts
    11  to be effected from outside this state by telephone, video call, facsim-
    12  ile, web portal, electronic transfer of funds, or by any other electron-
    13  ic means approved by the superintendent, provided that the insurer shall
    14  not have any other contact or interaction with a person  in  this  state
    15  other than as specified and in the manner provided in this paragraph;
    16    § 2. Subparagraph (D) of paragraph 2 of subsection (b) of section 1101
    17  of the insurance law is amended to read as follows:
    18    (D)  transactions  with  respect  to  policies  or  annuity  contracts
    19  lawfully issued without this state occurring subsequent to issue, if, at
    20  the time of issue, such policies or contracts covered subjects of insur-
    21  ance or risks not resident or located in this  state.    Notwithstanding
    22  the foregoing, transactions described in this subparagraph involving the
    23  continuance or servicing of life insurance policies or annuity contracts
    24  may  be  effected  from  outside  this  state  by telephone, video call,
    25  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

     1  electronic  means  approved  by  the  superintendent,  provided that the
     2  insurer shall not have any other contact or interaction with a person in
     3  this state other than as specified and in the manner  provided  in  this
     4  paragraph;
     5    § 3. Section 1105 of the insurance law is amended to read as follows:
     6    §  1105.  Voluntarily  ceasing to maintain license. When an authorized
     7  insurer proposes to cease to maintain its existing licensing  status  in
     8  this  state,  the  insurer  shall at least forty-five days prior to such
     9  proposed action submit to the  superintendent  a  plan  to  protect  the
    10  interests  of  the  people of this state. Such proposed action shall not
    11  become effective without the approval of such plan  by  the  superinten-
    12  dent. The plan shall include requirements and procedures for meeting the
    13  insurer's  contractual obligations, providing security protection in the
    14  event of a subsequent insolvency, and meeting any  applicable  statutory
    15  obligations, including its obligations pursuant to articles fifty-three,
    16  fifty-four and fifty-five of this chapter. Such plan shall be in compli-
    17  ance  with  a regulation to be promulgated by the superintendent. A plan
    18  may request that the insurer be permitted to continue or service a  life
    19  insurance  policy  or  annuity contract from outside this state by tele-
    20  phone, video call, facsimile, web portal, electronic transfer of  funds,
    21  or  by  any  other  electronic  means  as approved by the superintendent
    22  pursuant to subparagraph (C) of  paragraph  two  of  subsection  (b)  of
    23  section  one  thousand  one  hundred  one  of  this article. In order to
    24  protect the interests of the people of this  state,  the  superintendent
    25  may  require  the  deposit of securities in this state, in trust, in the
    26  name of the superintendent.
    27    § 4. This act shall take effect immediately.