New York Creates Regulatory Safe Harbor for Certain Broker Activities Involving Non-US Entities

Governor Cuomo recently signed Assembly Bill 7789, which will expand the scope of activities that insurance brokers may engage in with respect to Group Life and Group A&H insurance sales to multinational clients covering non-US employees. Under certain conditions, brokers will now be able to provide information to certain non-US residents about group life, annuity or accident and health policies issued or delivered by alien insurers, without running the risk of violating New York’s insurance licensing requirements. Additionally, brokers will now be allowed to: (1) meet and discuss insurance needs with multinationals, (2) refer multinationals to alien insurers, (3) respond to requests for information by representatives of the multinationals, (4) provide information about renewals of existing policies issued by alien insurers, and (5) manage the employee benefits program of multinationals.

The law, which is effective immediately, may be viewed here.