What's happening
This bill allows licensed insurance brokers in New York to work with multinational clients on property and casualty insurance through unauthorized alien insurers under specific conditions.
Why it matters
Expands insurance options for multinational companies. This amendment allows New York-licensed insurance brokers to help multinational clients obtain property and casualty insurance from foreign (alien) insurers not authorized in New York, potentially giving businesses greater flexibility to cover risks overseas.
Adds regulatory safeguards and transparency. Brokers must notify clients that these foreign insurers are not licensed in New York, the policies are not protected by state guaranty funds, and may not be subject to all New York laws, helping clients make informed decisions and understand potential risks.
Limits domestic impact and maintains oversight. The bill prohibits foreign insurers from maintaining offices in New York or advertising within the state, and restricts brokers to specific informational and administrative activities, reducing risk of unregulated insurance activity affecting the local market.
Targets global business needs. The change is specifically tailored for multinational entities with operations and employees outside the US, recognizing the unique and complex insurance needs of global businesses and aiming to keep New York brokers competitive in the international marketplace.
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Allow Foreign Insurance Brokers
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Signed chap.431
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading rules cal.584
- Substituted for A97A
- Referred to insurance
- Delivered to assembly
- Passed senateVote 63–0
- Amended on third reading 3959a
- Advanced to third reading
- 2nd report cal.
Show 2 earlier actions
- 1st report cal.675
- Referred to insurance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Allow Foreign Insurance Brokers
Assembly Floor Calendar · Sponsor Kevin Cahill
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3959--A Cal. No. 675
2017-2018 Regular Sessions
IN SENATE
January 31, 2017
Introduced by Sen. SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance -- reported favorably from said committee, ordered to first and second report, ordered to a third reading, amended and ordered reprinted, retaining its place in the order of third reading
AN ACT to amend the insurance law, in relation to permitting insurance brokers to engage in certain activities with respect to property and casualty insurance in New York
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subsection (k) of section 2117 of the insurance law, as added by chapter 64 of the laws of 2015, is amended to read as follows:
(k)(1) Notwithstanding subsection (a) of this section, any insurance broker licensed under subparagraph (A) of paragraph one of subsection (b) of section two thousand one hundred four of this article with respect to life insurance or annuities, [or] subparagraph (A) or (B) of paragraph one of subsection (b) of such section with respect to accident and health insurance, or subparagraph (B) of this paragraph with respect to property/casualty insurance may engage in the activities specified in paragraph two of this subsection with respect to an alien insurer not authorized to do an insurance business in this state, provided that:
(A) the activities relate to a policy or contract of group life, group annuity, [or] group accident and health insurance, or property/casualty insurance where the policyholder or proposed policyholder is a multinational entity resident outside the United States, the policy or contract covers the multinational entity's liabilities, properties, employees and their dependents, and the liabilities arise, or the properties and employees reside outside of the United States, except that the policy or contract may provide coverage to employees who are temporarily inside the United States;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01679-02-7
S. 3959--A 2
(B) the policy or contract shall not be underwritten or negotiated in this state or issued or delivered in the United States;
(C) the alien insurer is authorized to transact the kinds of insurance business in the jurisdictions where the policies or contracts will be issued or delivered and the policies or contracts are issued in conformance with the laws of such jurisdictions;
(D) before engaging in any of the activities specified in paragraph two of this subsection, the licensed insurance broker provides written notice to the multinational entity that the alien insurer is not licensed in or authorized to do business in this state; the policy or contract is not protected by the New York state guaranty funds; the policy or contract has not been approved by the superintendent; and the policy or contract may not be subject to all of the laws of this state;
(E) the alien insurer shall not maintain any office in this state; and
(F) except as specifically provided in this section, the licensed insurance broker shall not call attention to the alien insurer by any advertisement or public announcement in this state.
(2) Subject to paragraph one of this subsection, the licensed insurance broker may engage in this state in only the following activities with respect to the alien insurer:
(A) provide information to the multinational entity with respect to a policy or contract of group life, group annuity, [or] group accident and health insurance, or a property/casualty insurance policy issued or delivered or that will be issued or delivered by the alien insurer;
(B) meet and discuss insurance needs with the multinational entity, including providing information directly to the entity in person or otherwise about the policies or contracts offered by the alien insurer; and facilitating introductions with the multinational entity's human resources and benefits manager in each country in which the multinational entity has employee benefit needs;
(C) refer the multinational entity to the alien insurer and provide information to the multinational entity about the alien insurer;
(D) respond to requests for information by representatives of the multinational entity concerning quotes and any other specific terms and conditions of a group life, group annuity, [or] group accident and health insurance, or property/casualty insurance policy or contract being negotiated in the jurisdiction where the policy or contract will be issued or delivered by the alien insurer;
(E) provide information concerning renewals of existing policies or contracts of group life, group annuity, [or] group accident and health insurance, or a property/casualty insurance policy issued by the alien insurer; and
(F) manage the employee benefits program of the multinational entity, including aggregating and reporting employee benefits and financial information about the program.
(3) Any activity in which a licensed insurance broker engages with respect to an alien insurer pursuant to this subsection shall be deemed to be included within the meaning of "any other transaction of business" for the purposes of section one thousand two hundred thirteen of this article.
(4) For purposes of this subsection:
(A) "multinational entity" shall mean an institution that is a member of a multinational group of institutions operating globally where: (i) at least one institution in the group is formed under the laws of the United States or has significant operations in the United States; and
S. 3959--A 3
(ii) at least one institution in the group has offices outside the United States; and
(B) "group of institutions" shall mean a parent corporation and its subsidiaries.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the insurance law, in relation to permitting insurance brokers to engage in certain activities with respect to property and casualty insurance in New York
Purpose
Enact an amendment to Chapter 64 of the Laws of 2015 to expand the authorization of a licensed insurance broker to engage in certain activities regarding issuance of life or health insurance policies or contracts to also include activities leading to issuance of property and casualty insurance policies or contracts
Summary of provisions
Section 1 amends Insurance Law section 2117 (k) to clarify that a licensed insurance broker is permitted, under certain specified conditions, to: 1) provide information to a multinational entity resident outside the United States with respect to a property/casualty insurance policy or contract issued or delivered, or that will be issued or delivered, by an alien insurer; 2) meet and discuss property/casualty insurance needs with the multinational entity; 3) refer the multinational entity to the alien insurer and provide information to the multinational entity about the alien insurer; 4) respond to requests for information by representatives of the multinational entity concerning quotes and any other specific terms and conditions of such a policy or contract being negotiated in the jurisdiction where the policy or contract will be issued or delivered by the alien insurer; and 5) provide information concerning renewals of existing such policies or contracts issued by the alien insurer.
Section 2 is the effective date.
Justification
New York amended its insurance law with enactment of Chapter 64 of 2015, to maintain and enhance New York State's status as a hub of international business by authorizing a licensed insurance broker to engage in certain specified activities in New York related to group life, group annuity, or group accident and health insurance policies or contracts provided that an alien insurer issued or delivered the policy or contract to a policyholder or proposed policyholder that is a multinational entity outside the United States. This bill is a chapter amendment to this law that would clarify that property/casualty insurance is also an authorized type of insurance that a licensed broker could bring to an alien insurer for placement with a multinational entity resident outside the U.S.
This measure would further ensure adequate protection for policyholders while allowing property and casualty insurers to continue to meet the needs of their New York customers with a global presence, thereby maintaining New York's place as a vital center of international business.
Legislative history
S.7039 of 2016-Passed Senate.
Fiscal implications
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.