Bill Text: NY S02093 | 2017-2018 | General Assembly | Introduced

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Bill Title: Removes requirement for advertisements referring to an insurer to include the insurer's full name and principal office and makes technical corrections relating thereto.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2018-01-03 - REFERRED TO INSURANCE [S02093 Detail]

Download: New_York-2017-S02093-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          2093
                               2017-2018 Regular Sessions
                    IN SENATE
                                    January 12, 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 removing the  require-
          ment  for advertisements referring to an insurer to include the insur-
          er's full name and principal office and making  technical  corrections
          related thereto
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Section 2122 of the insurance law, the section heading  and
     2  subsection  (a)  as amended by section 11 of part V of chapter 57 of the
     3  laws of 2014, is amended to read as follows:
     4    § 2122. Advertising by insurance producers.  (a)  [(1)]  No  insurance
     5  producer  shall  make  or  issue  in this state any advertisement, sign,
     6  pamphlet, circular, card or other public announcement purporting to make
     7  known the financial condition of any  insurer,  unless  the  same  shall
     8  conform  to the requirements of section one thousand three hundred thir-
     9  teen of this chapter.
    10    [(2)] (b) No insurance producer or other person, shall, by any  adver-
    11  tisement  or  public  announcement  in this state, call attention to any
    12  unauthorized insurer or insurers.
    13    [(b) Every agent of any insurer and every insurance broker  shall,  in
    14  all  advertisements,  public  announcements, signs, pamphlets, circulars
    15  and cards, which refer to an insurer, set forth therein the name in full
    16  of the insurer referred to and the name of the city, town or village  in
    17  which it has its principal office in the United States.]
    18    §  2.  Paragraph  5 of subsection (b) of section 1101 of the insurance
    19  law, as added by chapter 597 of the laws of 1999, is amended to read  as
    20  follows:
    21    (5)  Notwithstanding the foregoing, an unauthorized insurer, which (A)
    22  is affiliated with an insurer licensed in this state, and (B) has satis-
    23  fied all applicable requirements for placements by excess  line  brokers
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04792-01-7
        S. 2093                             2
     1  as  set forth in section two thousand one hundred eighteen of this chap-
     2  ter, may provide from an office within the state,  services  to  support
     3  its  insurance  business.  Such  services shall not be deemed under this
     4  chapter  as  doing an insurance business in this state. For the purposes
     5  of this section these services include, but are not limited to, computer
     6  operations, clerical and  staffing  support,  underwriting,  negotiating
     7  contract terms, quoting premiums, binding coverage, drafting and issuing
     8  policies  and  claims  handling,  investigation and payment, among other
     9  incidental services. Such services  shall  not  include  the  marketing,
    10  soliciting  or advertising by the unauthorized insurer directly to poli-
    11  cyholders. Notwithstanding [paragraph two of] subsection  [(a)]  (b)  of
    12  section  two thousand one hundred twenty-two of this chapter, such unau-
    13  thorized insurers shall be permitted to advertise  to,  and  market  and
    14  solicit  through,  excess  line brokers licensed pursuant to section two
    15  thousand one hundred five of this chapter. All  obligations  of  such  a
    16  licensee  under  article twenty-one of this chapter shall remain in full
    17  force and effect. Any document issued by the unauthorized  insurer  that
    18  indicates  any location within this state in which it conducts its oper-
    19  ations shall include a prominent notice that the insurer is not licensed
    20  by the state of New York, in no smaller than 10 point type,  in  accord-
    21  ance with regulations as may be promulgated by the superintendent.
    22    §  3. Subsection (i) of section 2117 of the insurance law, as added by
    23  chapter 597 of the laws of 1999, is amended to read as follows:
    24    (i) Notwithstanding subsection (a) of this section, a licensed insurer
    25  may provide, from its office in  the  state,  services  to  support  the
    26  insurance  business  of  an unauthorized insurer with which it is affil-
    27  iated, provided that the unauthorized insurer has satisfied all applica-
    28  ble requirements for placements by excess line brokers as set  forth  in
    29  section two thousand one hundred eighteen of this article. Such services
    30  may  include, but shall not be limited to, computer operations, clerical
    31  and staffing support, underwriting, negotiating contract terms,  quoting
    32  premiums,  binding  coverage,  drafting  and issuing policies and claims
    33  handling, investigation and payment, among  other  incidental  services.
    34  Services  expressly prohibited under this section include the marketing,
    35  soliciting or advertising by the unauthorized insurer directly to  poli-
    36  cyholders.  Notwithstanding  [paragraph  two of] subsection [(a)] (b) of
    37  section two thousand one hundred twenty-two of this article, such  unau-
    38  thorized  insurers  shall  be  permitted to advertise to, and market and
    39  solicit through, excess line brokers licensed pursuant  to  section  two
    40  thousand  one  hundred  five  of this article, from an office within the
    41  state. All obligations of such licensee under this article shall  remain
    42  in full force and effect. Any document issued by an unauthorized insurer
    43  that  indicates  any location within this state in which it conducts its
    44  operations shall include a prominent notice  that  the  insurer  is  not
    45  licensed  by the state of New York, in no smaller than 10 point type, in
    46  accordance with regulations as may be promulgated by the superintendent.
    47    § 4. This act shall take effect immediately.