Bill Text: NY A06925 | 2011-2012 | General Assembly | Introduced
Bill Title: Relates to the issuance of certificates of insurance and requires the issuance of a certificate of insurance as a summary or evidence of property or casualty insurance.
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Introduced - Dead) 2012-05-31 - print number 6925a [A06925 Detail]
Download: New_York-2011-A06925-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
6925
2011-2012 Regular Sessions
I N A S S E M B L Y
April 6, 2011
___________
Introduced by M. of A. MORELLE -- read once and referred to the Commit-
tee on Insurance
AN ACT to amend the insurance law, in relation to certificates of insur-
ance
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. The insurance law is amended by adding a new article 5 to
2 read as follows:
3 ARTICLE 5
4 CERTIFICATES OF INSURANCE
5 SECTION 501. DEFINITIONS.
6 502. PROHIBITIONS.
7 503. STANDARDS FOR FORMS.
8 504. APPLICABILITY.
9 505. FEES.
10 506. ENFORCEMENT AND PENALTIES.
11 507. RULES AND REGULATIONS.
12 S 501. DEFINITIONS. FOR PURPOSES OF THIS SECTION: (A) "CERTIFICATE" OR
13 "CERTIFICATE OF INSURANCE" MEANS ANY DOCUMENT OR INSTRUMENT, NO MATTER
14 HOW TITLED OR DESCRIBED, WHICH IS PREPARED OR ISSUED BY AN INSURER OR
15 INSURANCE PRODUCER AS A SUMMARY OR EVIDENCE OF PROPERTY OR CASUALTY
16 INSURANCE COVERAGE. "CERTIFICATE" OR "CERTIFICATE OF INSURANCE" SHALL
17 NOT INCLUDE A POLICY OF INSURANCE OR INSURANCE BINDER.
18 (B) "CERTIFICATE HOLDER" MEANS ANY PERSON, OTHER THAN A POLICYHOLDER,
19 THAT IS IDENTIFIED ON THE CERTIFICATE AS A CERTIFICATE HOLDER.
20 (C) "INSURANCE PRODUCER" HAS THE MEANING ASCRIBED TO IT BY SUBSECTION
21 (K) OF SECTION TWO THOUSAND ONE HUNDRED ONE OF THIS CHAPTER.
22 (D) "INSURER" MEANS ANY PERSON "DOING AN INSURANCE BUSINESS" AS SUCH
23 PHRASE IS DEFINED IN SECTION ONE THOUSAND ONE HUNDRED ONE OF THIS CHAP-
24 TER.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10419-01-1
A. 6925 2
1 (E) "PERSON" MEANS ANY INDIVIDUAL, PARTNERSHIP, CORPORATION, ASSOCI-
2 ATION, OR OTHER LEGAL ENTITY, INCLUDING ANY PUBLIC ENTITY AS DEFINED IN
3 PARAGRAPH FIFTY-ONE OF SUBSECTION (A) OF SECTION ONE HUNDRED SEVEN OF
4 THIS CHAPTER, ANY STATE AUTHORITY AS DEFINED IN SUBDIVISION ONE OF
5 SECTION TWO OF THE PUBLIC AUTHORITIES LAW, ANY LOCAL AUTHORITY AS
6 DEFINED IN SUBDIVISION TWO OF SECTION TWO OF THE PUBLIC AUTHORITIES LAW,
7 AND ANY INTERSTATE OR INTERNATIONAL AUTHORITY AS DEFINED IN SUBDIVISION
8 THREE OF SECTION TWO OF THE PUBLIC AUTHORITIES LAW.
9 (F) "POLICYHOLDER" MEANS A PERSON WHO HAS CONTRACTED WITH A PROPERTY
10 OR CASUALTY INSURER FOR INSURANCE COVERAGE.
11 S 502. PROHIBITIONS. (A) NO PERSON SHALL PREPARE, ISSUE, OR REQUIRE
12 THE ISSUANCE OF A CERTIFICATE UNLESS THE FORM HAS BEEN FILED WITH AND
13 APPROVED BY THE SUPERINTENDENT. NO PERSON SHALL ALTER OR MODIFY AN
14 APPROVED CERTIFICATE OF INSURANCE FORM.
15 (B) NO PERSON, WHEREVER LOCATED, SHALL DEMAND OR REQUEST THE ISSUANCE
16 OF A CERTIFICATE OF INSURANCE FROM AN INSURER, INSURANCE PRODUCER, OR
17 POLICYHOLDER THAT CONTAINS ANY FALSE OR MISLEADING INFORMATION CONCERN-
18 ING THE POLICY OF INSURANCE TO WHICH THE CERTIFICATE MAKES REFERENCE.
19 (C) NO PERSON, WHEREVER LOCATED, SHALL KNOWINGLY PREPARE OR ISSUE A
20 CERTIFICATE OF INSURANCE THAT PURPORTS TO ALTER, AMEND, OR EXTEND THE
21 TERMS OR COVERAGE PROVIDED BY THE POLICY OF INSURANCE TO WHICH THE
22 CERTIFICATE MAKES REFERENCE.
23 (D) NO PERSON SHALL PREPARE, ISSUE, OR REQUEST, EITHER IN ADDITION TO
24 OR IN LIEU OF A CERTIFICATE OF INSURANCE, AN OPINION LETTER OR OTHER
25 DOCUMENT OR CORRESPONDENCE THAT IS INCONSISTENT WITH THIS SECTION;
26 HOWEVER, AN INSURER OR INSURANCE PRODUCER MAY PREPARE OR ISSUE AN ADDEN-
27 DUM TO A CERTIFICATE THAT CLARIFIES AND EXPLAINS THE COVERAGE PROVIDED
28 BY A POLICY OF INSURANCE AND OTHERWISE COMPLIES WITH THE REQUIREMENTS OF
29 THIS SECTION.
30 S 503. STANDARDS FOR FORMS. (A) THE SUPERINTENDENT SHALL DISAPPROVE A
31 FORM FILED UNDER THIS SECTION, OR WITHDRAW APPROVAL OF A FORM, IF THE
32 FORM:
33 (1) IS MISLEADING, OR DECEPTIVE, OR VIOLATES PUBLIC POLICY; OR
34 (2) VIOLATES ANY LAW, OR REGULATION ADOPTED BY THE SUPERINTENDENT.
35 (B) STANDARD CERTIFICATE OF INSURANCE FORMS PROMULGATED BY THE ASSOCI-
36 ATION FOR COOPERATIVE OPERATIONS RESEARCH AND DEVELOPMENT ARE DEEMED
37 APPROVED BY THE SUPERINTENDENT AND ARE NOT REQUIRED TO BE FILED IF THE
38 FORMS OTHERWISE COMPLY WITH THE REQUIREMENTS OF THIS SECTION.
39 (C) NO CERTIFICATE OF INSURANCE SHALL CONTAIN REFERENCES TO CONTRACTS,
40 INCLUDING CONSTRUCTION OR SERVICE CONTRACTS, OTHER THAN THE REFERENCED
41 CONTRACT OF INSURANCE. NOTWITHSTANDING ANY REQUIREMENT, TERM, OR CONDI-
42 TION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH A CERTIF-
43 ICATE OF INSURANCE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED
44 BY THE REFERENCED POLICY OF INSURANCE IS SUBJECT TO ALL THE TERMS,
45 EXCLUSIONS AND CONDITIONS OF THE POLICY ITSELF.
46 (D) THE SUPERINTENDENT SHALL NOT APPROVE A CERTIFICATE OF INSURANCE
47 FORM THAT DOES NOT STATE THAT A CERTIFICATE OF INSURANCE IS NOT A POLICY
48 OF INSURANCE AND DOES NOT AMEND, EXTEND, OR ALTER THE COVERAGE AFFORDED
49 BY THE POLICY TO WHICH THE CERTIFICATE OF INSURANCE MAKES REFERENCE. A
50 CERTIFICATE OF INSURANCE SHALL NOT CONFER TO A CERTIFICATE HOLDER NEW OR
51 ADDITIONAL RIGHTS BEYOND WHAT THE REFERENCED POLICY OF INSURANCE
52 EXPRESSLY PROVIDES.
53 (E) A CERTIFICATE HOLDER SHALL ONLY HAVE A LEGAL RIGHT TO NOTICE OF
54 CANCELLATION, NONRENEWAL, OR ANY MATERIAL CHANGE, OR ANY SIMILAR NOTICE
55 CONCERNING A POLICY OF INSURANCE IF THE CERTIFICATE HOLDER IS NAMED
56 WITHIN THE POLICY OR ANY ENDORSEMENT AND THE POLICY OR ENDORSEMENT
A. 6925 3
1 REQUIRES NOTICE TO BE PROVIDED TO THE CERTIFICATE HOLDER. THE TERMS AND
2 CONDITIONS OF THE NOTICE, INCLUDING THE REQUIRED TIMING OF THE NOTICE,
3 ARE GOVERNED BY THE POLICY OF INSURANCE AND CANNOT BE ALTERED BY A
4 CERTIFICATE OF INSURANCE.
5 S 504. APPLICABILITY. THE PROVISIONS OF THIS SECTION SHALL APPLY TO
6 ALL CERTIFICATE HOLDERS, POLICYHOLDERS, INSURERS, INSURANCE PRODUCERS,
7 AND CERTIFICATE OF INSURANCE FORMS ISSUED AS EVIDENCE OF INSURANCE
8 COVERAGES ON PROPERTY, OPERATIONS, OR RISKS LOCATED IN THIS STATE,
9 REGARDLESS OF WHERE THE CERTIFICATE HOLDER, POLICYHOLDER, INSURER, OR
10 INSURANCE PRODUCER IS LOCATED.
11 S 505. FEES. AN INSURANCE PRODUCER MAY CHARGE A REASONABLE SERVICE
12 FEE FOR ISSUING A CERTIFICATE TO A POLICY HOLDER OR CERTIFICATE HOLDER,
13 PROVIDED THAT THE INSURANCE PRODUCER COMPLIES WITH THE PROVISIONS OF
14 SECTION TWO THOUSAND ONE HUNDRED NINETEEN OF THIS CHAPTER.
15 S 506. ENFORCEMENT AND PENALTIES. (A) THE SUPERINTENDENT SHALL HAVE
16 THE POWER TO LEVY A PENALTY NOT EXCEEDING ONE THOUSAND DOLLARS FOR EACH
17 VIOLATION AGAINST ANY PERSON WHO VIOLATES THIS ARTICLE.
18 (B) THE SUPERINTENDENT SHALL HAVE THE POWER TO EXAMINE AND INVESTIGATE
19 THE ACTIVITIES OF ANY PERSON THAT THE SUPERINTENDENT REASONABLY BELIEVES
20 HAS BEEN OR IS ENGAGED IN AN ACT OR PRACTICE PROHIBITED BY THIS ARTICLE.
21 THE SUPERINTENDENT SHALL HAVE THE POWER TO ENFORCE THE PROVISIONS OF
22 THIS SECTION AND IMPOSE ANY AUTHORIZED PENALTY OR REMEDY AGAINST ANY
23 PERSON WHO VIOLATES THIS ARTICLE.
24 S 507. RULES AND REGULATIONS. THE SUPERINTENDENT MAY ADOPT RULES OR
25 REGULATIONS AS HE OR SHE CONSIDERS APPROPRIATE TO CARRY OUT THE
26 PROVISIONS OF THIS ARTICLE.
27 S 2. This act shall take effect on the one hundred eightieth day after
28 it shall have become a law.
