Bill Text: NY S05647 | 2015-2016 | General Assembly | Introduced

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Bill Title: Relates to permitting insurance brokers to engage in certain activities in New York; permits brokers to act as agent for an insurer or health maintenance organization which is not licensed or authorized in this state with regard to certain activities involving multi-national entities.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2015-06-17 - SUBSTITUTED BY A7789 [S05647 Detail]

Download: New_York-2015-S05647-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         5647
                              2015-2016 Regular Sessions
                                   I N  S E N A T E
                                     May 21, 2015
                                      ___________
       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 brokers  to
         engage in certain activities in New York
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Section 2117 of the insurance law is amended  by  adding  a
    2  new subsection (k) to read as follows:
    3    (K)(1)  NOTWITHSTANDING  SUBSECTION (A) OF THIS SECTION, ANY INSURANCE
    4  BROKER LICENSED UNDER SUBPARAGRAPH (A) OF PARAGRAPH  ONE  OF  SUBSECTION
    5  (B)  OF  SECTION  TWO  THOUSAND  ONE  HUNDRED  FOUR OF THIS ARTICLE WITH
    6  RESPECT TO LIFE INSURANCE OR ANNUITIES, OR SUBPARAGRAPH (A)  OR  (B)  OF
    7  PARAGRAPH ONE OF SUBSECTION (B) OF SUCH SECTION WITH RESPECT TO ACCIDENT
    8  AND HEALTH INSURANCE MAY ENGAGE IN THE ACTIVITIES SPECIFIED IN PARAGRAPH
    9  TWO  OF  THIS SUBSECTION WITH RESPECT TO AN ALIEN INSURER NOT AUTHORIZED
   10  TO DO AN INSURANCE BUSINESS IN THIS STATE, PROVIDED THAT:
   11    (A) THE ACTIVITIES RELATE TO A POLICY OR CONTRACT OF GROUP LIFE, GROUP
   12  ANNUITY, OR GROUP ACCIDENT AND HEALTH INSURANCE WHERE  THE  POLICYHOLDER
   13  OR  PROPOSED POLICYHOLDER IS A MULTINATIONAL ENTITY RESIDENT OUTSIDE THE
   14  UNITED STATES, THE POLICY OR CONTRACT COVERS THE MULTINATIONAL  ENTITY'S
   15  EMPLOYEES  AND THEIR DEPENDENTS, AND THE EMPLOYEES RESIDE OUTSIDE OF THE
   16  UNITED STATES, EXCEPT THAT THE POLICY OR CONTRACT MAY  PROVIDE  COVERAGE
   17  TO EMPLOYEES WHO ARE TEMPORARILY INSIDE THE UNITED STATES;
   18    (B)  THE POLICY OR CONTRACT SHALL NOT BE UNDERWRITTEN OR NEGOTIATED IN
   19  THIS STATE OR ISSUED OR DELIVERED IN THE UNITED STATES;
   20    (C) THE ALIEN INSURER IS AUTHORIZED TO TRANSACT THE KINDS OF INSURANCE
   21  BUSINESS IN THE JURISDICTIONS WHERE THE POLICIES OR  CONTRACTS  WILL  BE
   22  ISSUED OR DELIVERED AND THE POLICIES OR CONTRACTS ARE ISSUED IN CONFORM-
   23  ANCE WITH THE LAWS OF SUCH JURISDICTIONS;
   24    (D)  BEFORE  ENGAGING  IN ANY OF THE ACTIVITIES SPECIFIED IN PARAGRAPH
   25  TWO OF THIS SUBSECTION, THE LICENSED INSURANCE BROKER  PROVIDES  WRITTEN
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD11241-02-5
       S. 5647                             2
    1  NOTICE  TO  THE  MULTINATIONAL  ENTITY  THAT  THE  ALIEN  INSURER IS NOT
    2  LICENSED IN OR AUTHORIZED TO DO BUSINESS IN THIS STATE;  THE  POLICY  OR
    3  CONTRACT  IS  NOT  PROTECTED  BY  THE NEW YORK STATE GUARANTY FUNDS; THE
    4  POLICY  OR CONTRACT HAS NOT BEEN APPROVED BY THE SUPERINTENDENT; AND THE
    5  POLICY OR CONTRACT MAY NOT BE SUBJECT TO ALL OF THE LAWS OF THIS STATE;
    6    (E) THE ALIEN INSURER SHALL NOT MAINTAIN ANY OFFICE IN THIS STATE; AND
    7    (F) EXCEPT AS SPECIFICALLY PROVIDED  IN  THIS  SECTION,  THE  LICENSED
    8  INSURANCE  BROKER  SHALL  NOT CALL ATTENTION TO THE ALIEN INSURER BY ANY
    9  ADVERTISEMENT OR PUBLIC ANNOUNCEMENT IN THIS STATE.
   10    (2) SUBJECT TO PARAGRAPH ONE OF THIS SUBSECTION, THE  LICENSED  INSUR-
   11  ANCE  BROKER  MAY  ENGAGE IN THIS STATE IN ONLY THE FOLLOWING ACTIVITIES
   12  WITH RESPECT TO THE ALIEN INSURER:
   13    (A) PROVIDE INFORMATION TO THE MULTINATIONAL ENTITY WITH RESPECT TO  A
   14  POLICY  OR  CONTRACT OF GROUP LIFE, GROUP ANNUITY, OR GROUP ACCIDENT AND
   15  HEALTH INSURANCE ISSUED OR DELIVERED OR THAT WILL BE ISSUED OR DELIVERED
   16  BY THE ALIEN INSURER;
   17    (B) MEET AND DISCUSS INSURANCE NEEDS WITH  THE  MULTINATIONAL  ENTITY,
   18  INCLUDING  PROVIDING  INFORMATION  DIRECTLY  TO  THE ENTITY IN PERSON OR
   19  OTHERWISE ABOUT THE POLICIES OR CONTRACTS OFFERED BY THE ALIEN  INSURER;
   20  AND  FACILITATING  INTRODUCTIONS  WITH  THE MULTINATIONAL ENTITY'S HUMAN
   21  RESOURCES AND BENEFITS MANAGER IN EACH COUNTRY  IN  WHICH  THE  MULTINA-
   22  TIONAL ENTITY HAS EMPLOYEE BENEFIT NEEDS;
   23    (C)  REFER  THE  MULTINATIONAL ENTITY TO THE ALIEN INSURER AND PROVIDE
   24  INFORMATION TO THE MULTINATIONAL ENTITY ABOUT THE ALIEN INSURER;
   25    (D) RESPOND TO REQUESTS FOR  INFORMATION  BY  REPRESENTATIVES  OF  THE
   26  MULTINATIONAL  ENTITY CONCERNING QUOTES AND ANY OTHER SPECIFIC TERMS AND
   27  CONDITIONS OF A GROUP LIFE, GROUP ANNUITY, OR GROUP ACCIDENT AND  HEALTH
   28  INSURANCE  POLICY OR CONTRACT BEING NEGOTIATED IN THE JURISDICTION WHERE
   29  THE POLICY OR CONTRACT WILL BE ISSUED OR DELIVERED BY THE ALIEN INSURER;
   30    (E) PROVIDE INFORMATION CONCERNING RENEWALS OF  EXISTING  POLICIES  OR
   31  CONTRACTS  OF  GROUP  LIFE,  GROUP ANNUITY, OR GROUP ACCIDENT AND HEALTH
   32  INSURANCE ISSUED BY THE ALIEN INSURER; AND
   33    (F) MANAGE THE EMPLOYEE BENEFITS PROGRAM OF THE MULTINATIONAL  ENTITY,
   34  INCLUDING  AGGREGATING  AND  REPORTING  EMPLOYEE  BENEFITS AND FINANCIAL
   35  INFORMATION ABOUT THE PROGRAM.
   36    (3) ANY ACTIVITY IN WHICH A LICENSED  INSURANCE  BROKER  ENGAGES  WITH
   37  RESPECT  TO AN ALIEN INSURER PURSUANT TO THIS SUBSECTION SHALL BE DEEMED
   38  TO BE INCLUDED WITHIN THE MEANING OF "ANY OTHER TRANSACTION OF BUSINESS"
   39  FOR THE PURPOSES OF SECTION ONE THOUSAND TWO HUNDRED  THIRTEEN  OF  THIS
   40  ARTICLE.
   41    (4) FOR PURPOSES OF THIS SUBSECTION:
   42    (A)  "MULTINATIONAL ENTITY" SHALL MEAN AN INSTITUTION THAT IS A MEMBER
   43  OF A MULTINATIONAL GROUP OF INSTITUTIONS OPERATING GLOBALLY  WHERE:  (I)
   44  AT  LEAST  ONE  INSTITUTION IN THE GROUP IS FORMED UNDER THE LAWS OF THE
   45  UNITED STATES OR HAS SIGNIFICANT OPERATIONS IN THE  UNITED  STATES;  AND
   46  (II)  AT  LEAST  ONE  INSTITUTION  IN  THE GROUP HAS OFFICES OUTSIDE THE
   47  UNITED STATES; AND
   48    (B) "GROUP OF INSTITUTIONS" SHALL MEAN A PARENT  CORPORATION  AND  ITS
   49  SUBSIDIARIES.
   50    S 2. Subparagraph (H) of paragraph 2 of subsection (b) of section 1101
   51  of the insurance law, as amended by section 2 of part I of chapter 61 of
   52  the laws of 2011, is amended to read as follows:
   53    (H)  transactions  with  respect  to insurance contracts negotiated or
   54  placed pursuant OR OTHERWISE SUBJECT to subsection (b), (c), [or] (j) OR
   55  (K) of section two thousand one hundred seventeen of this chapter;
   56    S 3. This act shall take effect immediately.