Bill Text: NY S06545 | 2013-2014 | 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: Slight Partisan Bill (Republican 2-1)
Status: (Enrolled - Dead) 2014-12-30 - DELIVERED TO GOVERNOR [S06545 Detail]
Download: New_York-2013-S06545-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
6545
I N S E N A T E
February 4, 2014
___________
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 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. APPLICABILITY.
8 504. ENFORCEMENT.
9 505. RULES AND REGULATIONS.
10 S 501. DEFINITIONS. FOR PURPOSES OF THIS SECTION:
11 (A) "CERTIFICATE" OR "CERTIFICATE OF INSURANCE" MEANS ANY DOCUMENT OR
12 INSTRUMENT, NO MATTER HOW TITLED OR DESCRIBED, WHICH IS PREPARED OR
13 ISSUED BY AN INSURER OR INSURANCE PRODUCER AS EVIDENCE OF PROPERTY OR
14 CASUALTY INSURANCE COVERAGE. "CERTIFICATE" OR "CERTIFICATE OF INSURANCE"
15 SHALL NOT INCLUDE A POLICY OF INSURANCE OR INSURANCE BINDER, AND DOES
16 NOT AMEND, EXTEND OR ALTER THE COVERAGE PROVIDED BY THE POLICY OF INSUR-
17 ANCE TO WHICH THE CERTIFICATE MAKES REFERENCE, AND IS SUBJECT TO ALL THE
18 TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICY. A CERTIFICATE OF
19 INSURANCE SHALL NOT CONFER TO ANY PERSON NEW OR ADDITIONAL RIGHTS BEYOND
20 WHAT THE REFERENCED POLICY OF INSURANCE EXPRESSLY PROVIDES.
21 (B) "CERTIFICATE HOLDER" MEANS ANY PERSON, OTHER THAN A POLICYHOLDER,
22 THAT IS IDENTIFIED ON THE CERTIFICATE AS A CERTIFICATE HOLDER.
23 (C) "INSURANCE PRODUCER" HAS THE MEANING ASCRIBED TO IT BY SUBSECTION
24 (K) OF SECTION TWO THOUSAND ONE HUNDRED ONE OF THIS CHAPTER.
25 (D) "INSURER" MEANS ANY PERSON "DOING AN INSURANCE BUSINESS" AS SUCH
26 PHRASE IS DEFINED IN SECTION ONE THOUSAND ONE HUNDRED ONE OF THIS CHAP-
27 TER.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13740-02-4
S. 6545 2
1 (E) "PERSON" MEANS ANY INDIVIDUAL, PARTNERSHIP, CORPORATION, ASSOCI-
2 ATION, OR OTHER LEGAL ENTITY, BUT SHALL NOT INCLUDE ANY GOVERNMENTAL
3 ENTITY, AS THAT TERM IS DEFINED IN THIS SECTION.
4 (F) "GOVERNMENTAL ENTITY" MEANS ANY PUBLIC ENTITY AS DEFINED IN PARA-
5 GRAPH FIFTY-ONE OF SUBSECTION (A) OF SECTION ONE HUNDRED SEVEN OF THIS
6 CHAPTER, ANY STATE AUTHORITY AS DEFINED IN SUBDIVISION ONE OF SECTION
7 TWO OF THE PUBLIC AUTHORITIES LAW, ANY LOCAL AUTHORITY AS DEFINED IN
8 SUBDIVISION TWO OF SECTION TWO OF THE PUBLIC AUTHORITIES LAW, AND ANY
9 INTERSTATE OR INTERNATIONAL AUTHORITY AS DEFINED IN SUBDIVISION THREE OF
10 SECTION TWO OF THE PUBLIC AUTHORITIES LAW.
11 (G) "POLICYHOLDER" MEANS A PERSON WHO HAS CONTRACTED WITH A PROPERTY
12 OR CASUALTY INSURER FOR INSURANCE COVERAGE.
13 S 502. PROHIBITIONS. (A) NO PERSON OR GOVERNMENTAL ENTITY SHALL
14 PREPARE, ISSUE, REQUEST, OR REQUIRE THE ISSUANCE OF A CERTIFICATE IF
15 SUCH PERSON OR GOVERNMENTAL ENTITY KNOWS THAT SUCH CERTIFICATE DOES NOT
16 COMPLY WITH THE FOLLOWING PROVISIONS:
17 (1) THE CERTIFICATE IS A STANDARD CERTIFICATE OF INSURANCE FORM
18 PROMULGATED AND AUTHORIZED FOR USE BY THE ASSOCIATION FOR COOPERATIVE
19 OPERATIONS RESEARCH AND DEVELOPMENT (ACORD) OR THE INSURANCE SERVICES
20 OFFICE (ISO);
21 (2) THE CERTIFICATE IS A FORM PROMULGATED BY THE INSURANCE COMPANY
22 THAT HAS UNDERWRITTEN THE POLICY REFERENCED IN THE CERTIFICATE OF INSUR-
23 ANCE; OR
24 (3) THE CERTIFICATE IS A FORM PREPARED, ISSUED, OR REQUESTED AS
25 EVIDENCE OF INSURANCE IN CONNECTION WITH A COMMERCIAL LENDING TRANS-
26 ACTION IN WHICH THE UNDERLYING PROPERTY SERVES AS THE PRIMARY COLLATERAL
27 SECURING THE BORROWER'S REPAYMENT OF THE LOAN, INCLUDING, BUT NOT LIMIT-
28 ED TO A FORM PROMULGATED BY THE MORTGAGE BANKERS ASSOCIATION (MBA).
29 (B) NO PERSON OR GOVERNMENTAL ENTITY SHALL ALTER, MODIFY, REQUEST, OR
30 REQUIRE THE ALTERATION OF A CERTIFICATE OF INSURANCE FORM WHEN SUCH
31 PERSON OR GOVERNMENTAL ENTITY KNOWS THAT SUCH ALTERATION, MODIFICATION,
32 REQUEST OR REQUIREMENT IS IN VIOLATION OF THIS ARTICLE.
33 (C) NO PERSON OR GOVERNMENTAL ENTITY SHALL REQUEST OR REQUIRE THAT A
34 CERTIFICATE OF INSURANCE FORM CONTAIN ADDITIONAL TERMS, CONDITIONS, OR
35 LANGUAGE OF ANY KIND NOT FOUND IN THE INSURANCE POLICY TO WHICH THE
36 CERTIFICATE MAKES REFERENCE OR TO AN ENDORSEMENT TO SUCH POLICY WHEN
37 SUCH PERSON OR GOVERNMENTAL ENTITY KNOWS SUCH REQUEST OR REQUIREMENT IS
38 IN VIOLATION OF THIS ARTICLE.
39 (D) NO PERSON OR GOVERNMENTAL ENTITY SHALL REQUEST OR REQUIRE EITHER
40 IN ADDITION TO OR IN LIEU OF A CERTIFICATE OF INSURANCE, AN OPINION
41 LETTER, WARRANTY, STATEMENT, SUPPLEMENTAL CERTIFICATE OR ANY OTHER DOCU-
42 MENT OR CORRESPONDENCE THAT SUCH PERSON OR GOVERNMENTAL ENTITY KNOWS TO
43 BE INCONSISTENT WITH THE PROHIBITIONS OF THIS SECTION. HOWEVER, AN
44 INSURER OR INSURANCE PRODUCER MAY PREPARE OR ISSUE AN ADDENDUM TO A
45 CERTIFICATE THAT CLARIFIES AND EXPLAINS THE COVERAGE PROVIDED BY A POLI-
46 CY OF INSURANCE AND OTHERWISE COMPLIES WITH THE REQUIREMENTS OF THIS
47 SECTION, PROVIDED SUCH AUTHORITY IS GRANTED TO THE PRODUCER BY THE
48 INSURER.
49 (E) NO PERSON OR GOVERNMENTAL ENTITY SHALL REQUEST OR REQUIRE A
50 CERTIFICATE OF INSURANCE THAT SUCH PERSON OR GOVERNMENTAL ENTITY KNOWS
51 CONTAINS REFERENCES TO A CONTRACT OTHER THAN THE INSURANCE POLICY, OR
52 WARRANTS THAT THE INSURANCE POLICIES REFERENCED IN THE CERTIFICATE
53 COMPLY WITH THE REQUIREMENTS OF A PARTICULAR CONTRACT PROVIDED HOWEVER A
54 CERTIFICATE MAY INCLUDE A CONTRACT TITLE OR DESCRIPTION FOR THE SOLE
55 PURPOSE OF IDENTIFYING THE PROJECT FOR WHICH THE CERTIFICATE WAS ISSUED,
56 BUT SUCH INCLUSION SHALL NOT BE INTERPRETED AS WARRANTING THAT THE
S. 6545 3
1 INSURANCE POLICIES REFERENCED IN THE CERTIFICATE COMPLY WITH THE
2 REQUIREMENTS OF SUCH CONTRACT.
3 (F) NO PERSON OR GOVERNMENTAL ENTITY SHALL REQUEST OR REQUIRE, PREPARE
4 OR ISSUE A CERTIFICATE OF INSURANCE THAT SUCH PERSON OR GOVERNMENTAL
5 ENTITY KNOWS: (I) DOES NOT ACCURATELY STATE THE TERMS OF COVERAGE
6 PROVIDED BY THE POLICY OR POLICIES OF INSURANCE TO WHICH THE CERTIFICATE
7 MAKES REFERENCE; (II) PURPORTS TO ALTER, AMEND, EXTEND, OR MISREPRESENT
8 THE TERMS OF COVERAGE TO WHICH THE CERTIFICATE MAKES REFERENCE; OR (III)
9 PURPORTS TO CONFER TO ANY PERSON NEW OR ADDITIONAL RIGHTS BEYOND WHAT
10 THE REFERENCED POLICY OF INSURANCE EXPRESSLY PROVIDES.
11 S 503. APPLICABILITY. THE PROVISIONS OF THIS SECTION SHALL APPLY TO
12 ALL CERTIFICATE HOLDERS, POLICYHOLDERS, INSURERS, INSURANCE PRODUCERS,
13 OR ANY OTHER PERSON AND TO CERTIFICATE OF INSURANCE FORMS ISSUED AS
14 EVIDENCE OF INSURANCE COVERAGES ON PROPERTY, OPERATIONS, OR RISKS
15 LOCATED IN THIS STATE, REGARDLESS OF WHERE THE CERTIFICATE HOLDER, POLI-
16 CYHOLDER, INSURER, OR INSURANCE PRODUCER IS LOCATED.
17 S 504. ENFORCEMENT. (A) THE SUPERINTENDENT SHALL HAVE THE POWER UNDER
18 SECTION FOUR HUNDRED FOUR OF THE FINANCIAL SERVICES LAW TO EXAMINE AND
19 INVESTIGATE THE ACTIVITIES OF ANY PERSON THAT THE SUPERINTENDENT REASON-
20 ABLY BELIEVES HAS BEEN OR IS ENGAGED IN AN ACT OR PRACTICE PROHIBITED BY
21 THIS ARTICLE. THE SUPERINTENDENT SHALL HAVE THE POWER TO ENFORCE THE
22 PROVISIONS OF THIS SECTION AND IMPOSE ANY AUTHORIZED PENALTY OR REMEDY
23 AS PROVIDED UNDER SECTION FOUR HUNDRED EIGHT OF THE FINANCIAL SERVICES
24 LAW AGAINST ANY PERSON WHO VIOLATES THIS ARTICLE.
25 (B) THE OFFICE OF THE STATE INSPECTOR GENERAL SHALL HAVE THE POWER
26 PURSUANT TO SECTION FIFTY-THREE OF THE EXECUTIVE LAW TO INVESTIGATE ANY
27 GOVERNMENTAL ENTITY THAT IS CONSIDERED A COVERED AGENCY UNDER SECTION
28 FIFTY-ONE OF THE EXECUTIVE LAW THAT HAS BEEN OR IS ENGAGED IN AN ACT OR
29 PRACTICE PROHIBITED BY THIS ARTICLE. IF A GOVERNMENTAL ENTITY NOT
30 CONSIDERED A COVERED AGENCY UNDER SECTION FIFTY-ONE OF THE EXECUTIVE LAW
31 HAS BEEN OR IS ENGAGED IN AN ACT OR PRACTICE PROHIBITED BY THIS ARTICLE,
32 THAT ENTITY'S INSPECTOR GENERAL, OTHER COMPLIANCE OR INTERNAL INVESTI-
33 GATIVE UNIT OR OTHER OFFICIAL OR ENTITY WITH PROPER AUTHORITY SHALL HAVE
34 THE POWER TO INVESTIGATE SUCH ENTITY.
35 S 505. RULES AND REGULATIONS. THE SUPERINTENDENT MAY ADOPT RULES OR
36 REGULATIONS AS HE OR SHE CONSIDERS APPROPRIATE TO CARRY OUT THE
37 PROVISIONS OF THIS ARTICLE.
38 S 2. This act shall take effect on the ninetieth day after it shall
39 have become a law.
